Private Lending

Why not get a conventional loan?

If you are a seasoned investor that has been leveraging through private lending, you already know the answer to this question. For the rest of you, there are a multitude of reasons, such as; buying power, impact on personal and business credit lines, value of time vs. cost, etc.

LOCATION - Hilton Head Island, SC

TERMS - 12% Cash on Cash over 8 months

PAYMENTS - Monthly payments of $1500 on $100k investment

PRINCIPAL - Principal paid through escrow at closing

COLLATERAL - Security Deed against property

Each Investment starts with our due diligence process. In addition to researching each individual property, we also evaluate the neighborhoods in which they are located. We focus on what is currently on the market, what previously sold in the area, the cost of repairs that will be needed for renovations, and calculate the value of the property after all the renovations take place. Such due diligence helps ensure we buy and sell right, creating a predictable atmosphere with high-yield returns.

Due Diligence Acquisition

After performing the due diligence process, once we are confident in the numbers, it’s time to buy. The acquisition of each property may vary. Whether it’s via a foreclosure, auction, listed on the MLS, a condemned property, or even an off-market property that was brought to us from our vast network of Realtors or wholesalers, they share this common characteristic: All are under-valued, distressed properties in need of renovations that can be sold for an average 20% return.

After the acquisition of the property we are ready for the renovations. Already having our budget amount calculated from the due diligence process and our established list of contractors and specialist, we get started right away. Due to the volume of investments we perform each year, this enables us to purchase materials in bulk. Performing similar repairs in each property, using the same style of windows, doors, colors of paint, etc. We can streamline the process. Minimizing the time it takes to renovate and maximizing the profits.

The final stage in the process of fixand-flips is off-loading the property. With an already established network of Realtors and other investors who are looking for buy - and - hold opportunities, this process can happen rather quickly. The entire process from due diligence all the way through to off-loading has an average timeline of 9-12 months and an average annualized return of 20%. Each client retains 100% ownership throughout the investment. And because SPI is a performance-based company, this is the stage at which we receive our payment.