Confidently invest in the real estate market.
Historically, real estate is a lucrative and reliable investment option. Generally speaking, the market trends upward, and this growth is steady, allowing investors to capitalize on what they put into certain properties.
While you may be interested in real estate investment opportunities in the Asheville, North Carolina area, securing financing, finding properties to purchase, and then managing your investments may be more time-consuming and complex than you can manage. At Monest, we simplify the real estate investment process.
We purchase homes and lots ourselves. Then, with a trusted team of construction professionals and investors, we provide options for real estate investment opportunities. We do all the behind-the-scenes work of looking for and purchasing properties, and when you invest with us, you benefit from our market expertise.
We continuously build our portfolio of real estate, so we consistently have multiple opportunities that you can consider. We would be happy to tell you more about any of our properties and provide more information about our unique and appealing approach to real estate investment.
If you are looking for real estate investment opportunities in the Asheville area, we are excited to tell you more about the properties we have purchased and how we can support you with your real estate investment goals. Contact us today to learn more about our current real estate investment opportunities and schedule a consultation with our team.
Contact Monest Today!
FAQs About Real Estate Investment Opportunities
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What is private lending?
When we have isolated a home well under market value, we give our private lenders an opportunity to fund the purchase and rehab of the home. Lenders can also earn high interest rates – generally 4 or 5 times the rates you can get on bank CDs and other traditional investment plans.
How is the money I invest used?
On a new home or lot purchase requiring renovations, the cost will be allocated to the purchase price, renovations, carrying costs, cost to resell, and also a small buffer for unexpected expenses.
Why don’t you get a traditional loan?
There are many reasons, but the primary reasons are time and negotiation leverage. Many of the homes we are purchasing are in need of a quick sale within 10-14 days. A traditional bank requires 30-45 days to close a loan. Also, our leverage is far greater when we purchase using cash funds. Many traditional home sales fall out of contract because of financing issues, and this allows us to negotiate a much lower purchase price and reduce our risk. Lending guidelines are also continually changing. New requirements include applications, approvals, junk fees, and strict investor guidelines. They also limit the number of investment properties that can be purchased by one company.
How can you afford to pay such high returns?
We make our money from the purchase. We may pay very high returns, but it allows us to purchase 20-30% below a retail purchaser. That instantly creates thousands of dollars in equity. Also, typically we cut out the middleman in transactions, such as commissions, mortgage broker fees, and loan fees, and our attorney costs are lower because there is less work for them to review.
Are you really helping sellers?
Absolutely. With your cash funding, we can offer something very few buyers can. We are buying on your timeline in as little as 10-14 days. Knowing that we’re going to renovate the home and buying in as-Is condition is a very important factor to most sellers of a distressed property. You also won’t have to pay any additional fees.
What if the market gets worse and values go down?
This is a great question and a valid concern. However, our strategy is not to speculate 3 years down the road. Our goal is to purchase quickly and sell even faster. Most of our projects are complete in 2-4 months and will be sold in 6-12 months. The market doesn’t tend to shift that dramatically in a matter of months – it’s typically a longer process for an area to decline. Remember, we’re buying in strategic areas where inventory is already low and demand is high; this greatly minimizes our risk.
What interest rate do you typically pay your private lenders?
We currently pay 4-5 times what a typical bank CD is paying. Our rates will fluctuate very little, all depending on the purchase price and rehab involved. Most of our lenders are paid from 8%-12%. With a lower purchase price, we can sometimes afford to pay a little higher rate to make sure our lenders make it worth their time.
How long will my funds be held?
The majority of our loans are set up on an 8-12 month note, but it depends on the size of the project. If we are doing a tear down and rebuild, we will have to wait on the county inspectors for approvals . This will cause delays, but we account for all of those details upfront and will give you an estimated time frame for the return on your investment.
When will I receive payments?
Typically, we pay one large lump sum at closing on a short-term note. This is much easier to manage for both of us, especially if we’re working out of a retirement account. On a longer note, we will pay monthly, just like a typical mortgage.
Is there a guarantee on your investment?
No. There is no government-backed guarantee on these privately held real estate notes. You’re deriving protection from the equity in the real estate. If at any time we were to default on the note, you have a legal right to take the home (essentially foreclose on us). Many investors laugh about this one and say, “I hope you’re a day behind on payments; I’d gladly take this one off your hands.” You have to remember we plan for the worst, and our homes have thousands of dollars of equity in them. The worst-case scenario oftentimes is we don’t make as much as we hoped for.
Is the IRS approved to use retirement accounts in this manner?
Yes, there are established tax guidelines, and it is completely legal. However, we always recommend the services of a custodian to invest retirement funds tax-deferred or tax-free.
Who buys insurance?
We do. We pay for a title search and also a title policy on the home, just as we would in a typical transaction.
What kind of insurance policy do you get on the home?
If we purchase a renovation, we purchase a builders’ risk policy (vacant dwelling policy). In case of any damage, insurance distributions would be used to rebuild or repair the property or used to pay you off.
How much is it going to cost me to lend to you?
It is our policy to pay for all the closing costs so that your entire investment goes to work for you. We will pay for the closing agent, document preparation fees, notary fees, overnight mail fees, bank wire fees, and recording costs. We do not charge any fees or commissions to our private lenders.
If you default on the loan, how do I acquire the property?
In this unlikely scenario, we would simply transfer ownership of the property to you, if possible. If for any reason we did not (or could not), then you have all the legal rights of a secured lender. The best way to legally protect your interest in case of a default would be to hire an attorney. They normally would seek to get your investment back, along with any unpaid interest, any collection costs, all your attorney fees, and maybe even more. A legal representative could advise you if it makes sense to foreclose or seek ownership of the property to protect or recoup your investment.
