Dear Investor,
                 The Home Buying Center, LLC. buys several houses each month and our team has been active in the real estate market in Sacramento since 1995. When we buy a house, we usually use the money of private lenders instead of using our own funds or bank loans. We keep our cash reserves on hand for those outstanding opportunities that require funds in a very short time period. Since we get a very high return on the deals we are involved in by buying at a discount, we can offer our private lenders a high yield when we use their money to fund our purchases.

Our maximum loan to value on a house we buy is 85%. That means we will borrow up to $85,000 on a $100,000 property. The money we borrow is secured by a promissory note and a 1st Deed of Trust (mortgage). Our investors who buy a 1st Deed of Trust get 9.00% interest*. Some of our investors prefer to receive monthly payments of principal and interest, while others prefer to receive payments of interest only. One of the benefits of receiving interest only payments is that 100% of your principal keeps working for you.

The majority of our investors, however, prefer to receive all their interest and principal back when the subject property is sold to the ultimate buyer. We offer a 2% premium above our normal interest rate (9% + 2% = 11%*) for investors who prefer to receive all their money at the end because it saves us administrative costs. Most of our loans have a balloon payment that is due in 1 to 7 years. This term is negotiated on a case-by-case basis.

Sometimes we borrow from investors by offering a 2nd Deed of Trust. For example, if there is a first mortgage for $50,000, then we can offer our investor a second mortgage of (up to) $35,000. In the case of a second position, we pay 11%* (13% if investors want to receive all their money back at the end of the transaction*)%.

All private lenders get:

• A Promissory Note
• A Deed of Trust recorded against the property
• Added on to the hazard insurance as the mortgagee
• A copy of any appraisals or market analysis reports
• Lender’s title insurance

We pay all costs involved to close the transaction. There is no cost to you as the investor.

Before you invest, we would first discuss how much of your capital you are looking to commit and for how long. We would then look for a deal that will meet your criteria. Once we locate the right property, we call you, give you all the details and then you decide whether to participate or
not. There’s never any obligation until after you approve the deal.

We never co-mingle or pool funds together. One investor… one note and one deed of trust.

When you decide on a deal, youll send your funds directly to the closing agent at a local title company when were ready to close. We never accept your funds directly.

For some investors, we can offer to sell existing notes secured by real estate at a discount to yield 11-15%. These types of deals are less common but opportunities to buy discounted notes occur now and then. Discountednotes would require further explanation regarding risks.

All the houses used as collateral will be located in Sacramento County, California.

Our team of private lenders includes family members, long-standing business contacts, and previous sellers from whom we have purchased properties. Because of the volume of business that we do we have opened our program to include investors who find us via this website.
                     
One of the best kept secrets in investing is that investors with funds in an individual retirement account (an IRA) can use them to invest in real estate. The IRS requires the use of an approved custodian for what is called a “Self-directed IRA” for a real estate IRA to qualify for tax-deferred or tax-free gains. We will be glad to discuss with you further how this process works.

To learn more, or to be added to our private investor list, please call or submit this form. Your questions are always welcome.

* Interest rates quote are for example and are subject to change depending upon the prevailing interest rate environment.
           
Sincerely,
The Home Buying Center Team
916-920-3278 ext. 2

 http://www.thehomebuyingcenter.com/investors.html