About the Program
We partner with investors to purchase the properties our buyers choose.
Program Overview
Through our affiliated companies we are a mortgage company, a real estate company and an investment company. We spend a great deal of time, money and effort seeking buyers who want to buy a home but cannot qualify for traditional bank financing. Our company is constantly screening applicants who cannot qualify for bank financing today but will be able to in three to five years. We require these "non-qualified" buyers to have a minimum down payment of 20% (10% for well qualified borrowers), good income and improving credit. These buyers work with our licensed real estate company to find the home they want – they pick the home of their choice! These buyers agree to an increase in price in exchange for our company purchasing the property they choose and providing seller financing.
​
We partner with investors to purchase the properties our buyers choose.
Why we partner with investors
With interest rates so low it is an incredible time to invest in real estate. We buy multiple homes per month for our U-pick seller financing program. Like any real estate investment firm, we need to continually raise capital to keep acquiring properties. We have found cash investors seek a higher return than the rates offered by banks for traditional mortgages. Therefore, we often seek what we call “Credit investors” to replace these traditional cash investors. This increases our investment returns by 2+% annually. On a $300,000 property, this results in additional profits of $30,000.
We seek buyers who have a 20% down payment
Our U-pick seller financing program is designed for buyers who have a 20% down payment. When qualifying for a loan our credit investing partner is required to provide a 20% down payment to qualify for an investor loan provided by our mortgage company (see credit investor page for qualification details). Because our seller financing buyers also provide a 20% down payment to purchase from us the credit investor gets their entire 20% down payment back at the START of the investment – leaving the credit investor with zero net cash invested, just using their credit to invest.
Buyers who have less than 20% down payment
On occasion, our seller financing buyer doesn’t have a full 20% down payment. If the borrower is well qualified we will offer them a short term “down payment assistance loan” to make up the difference – allowing the seller financing buyer to purchase with as little as 10% down. This loan is offered at a higher interest rate and repaid over a shorter time frame.
When the buyer has less than 20% down, there are three investment options:
-
The credit investor leaves some cash invested
-
The investor receives a preferred return on the net amount invested
-
The investor receives ALL cash flow from the property until repaid in full
-
-
The required net investment (after buyer down payment) split equally between investor and our company
-
A cash investor is brought in to make up the difference so the credit investor still has zero net cash invested. See our 2nd lien cash investor program for more details.
10% down investments are more profitable
At first glance, most investors would prefer to only invest in transactions where buyers have a full 20% down. However, for very little additional risk the investor can get a much greater return investing in the 10% down buyers (our default rate is actually lower on our 10% down buyers than our 20% down buyers). View our “Learn” page to compare investment returns for 10% down buyers versus 20% down buyers.
What do we invest in?
Our seller financing buyers find home in the greater Phoenix, Arizona area - typically single-family homes priced between $150,000 and $500,000.
