Recently, we've been getting a lot more folks asking if they could partner with us on our deals. As we looked at whether or not we should work with other people's money, we had to ask ourselves a few important questions:

• Can we be absolutely sure we can protect their money?
• What is the safest way to give a passive investor the highest rate of return?
• What is the best way to secure their investment so they have full recourse against our property if we go insane one day and don't pay?

We only wanted to do this if we took all the weight of these investments on our shoulders. Some of the people who wanted to invest were family and some of them were old friends.

We all use the same systems I created and developed over the past 35 years.

So we had to ask ourselves, how would we set it up if we were doing this for my Mom or my kids or my Brother or Sister? How would I set it up for someone I loved?

Because honestly, even the people who come to us who we don't know, will probably end up working with us for a long time. If we don't know you when we start working with you, it's our goal to make you part of our family and become lifelong friends.

Okay, with that said, let's talk about how an investment like this works.

We are currently paying 8% simple interest to investors who want to invest in our current projects.

The math is pretty simple. For example, if you invested $100,000 the return would be:

$100,000 X .08 = $8,000 per year ($666.67 per month)

You would be paid interest for every month we have your money until the end of the agreed upon term of the loan. After that, you could either reinvest your funds or, if you prefer, we could return your entire principal investment to you.

The term of the loan depends on the project. We can do loans for as little as 1 year or as long as 30 years.

I explain the whole program in this short video.

How Your Investment Is Secured?

Your funds are secured by a deed of trust recorded against one of our properties.

When we close the loan, a Lender's Title policy will be issued so you can know the property has a clear title.

There will also be a Note recorded by the title company at the County Recorder's office showing a lien in the amount of the loan against the subject property (protecting you).

You can download a sample loan package here. {NOTE: a hyperlink goes here}

If there is currently a loan on the property, the Note would be in "Second Position." If there are no current loans on the property, the Note would be in "First Position." Either way, we won't borrow more against a property than the current market value. We will give you a market value of the property so you can see what your "Loan To Value" percentage is on the property. For example, if you loan $90,000 on a property that is currently worth $100,000, your "Loan To Value" (LTV) is 90%.

The lower the loan to value, the more equity secures you in the property and the more secure the investment becomes.

But security is not just about LTV. It's also about who the borrower is (US) and their experience and reliability. It's also about the quality of the investment itself.

We will also list you (the lender) as 'Additional Insured' on the property insurance policy. That way, if something were to happen to the property to cause a total loss (e.g. it burns down), the insurance company would pay the lender from the insurance settlement.

So That’s About It…

• You invest your money with us.
• We secure it with real estate investments.
• We make payments to you monthly, quarterly or annually depending on the project.
• When the term of the loan is up, we give you back your principal investment.

Frequently Asked Questions

Q: What is a Private Money Lender?

A: Private Money Lenders loan money to investors, like us, who purchase and renovate properties for resale or rental.

A private money lender is an individual who lends out their own capital for real estate investments. They are a private person or entity. They are NOT part of a bank or other financial institution.

This type of lender could be anyone with the financial ability to invest.

We sometimes work with small companies who want to invest their funds, but mostly, we work with Mom and Pop investors who want to get a better return on their retirement accounts than they can get with other passive investments.

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Q: Why not just use a bank to fund the deal?

A: Private money loans are more flexible than traditional financing. Borrower qualification guidelines are fewer and less strict, especially when the lenders are friends or family members.

One key difference is that private money lenders are more likely than others to be willing to finance the acquisition of distressed property in need of significant repair.

This allows investors to purchase discounted properties and pay for renovations that increase the value of the property.

The flexibility of private money lending also makes it faster. A borrower can get the money to do a deal in days, rather than waiting several weeks to get funded by a conventional mortgage. There's a lot less red tape.

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Q: I have no experience investing in real estate. Is that a problem?

A: We have lots of experience and your investment will be secured by real estate. Even if we fail (knock on wood), your money will be secured by the property.

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Q: What if there is an emergency and I need my capitol back immediately?

A: Your money will be tied up in the real estate for the term of your investment. We have short term loans and long term loans. We try to help you pick the one that best suits your needs.

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Q: How can you afford to pay 8% simple interest?

A: Banks make money by loaning out their customer's deposits. They typically pay 1% to 4% to the depositor and they charge 7% to 12% to borrowers. Banks make a profit on the spread.

Here are two examples of how we use your money and why the 8% return we pay to you is still profitable for us.

SHORT TERM DEALS

• Rehabs. We buy property below market value. When we find a good fixer deal, we come in with cash and purchase it. We then will usually fix it up and invest more money in the rehab. Here is an example deal from the past:

Purchase Price - $50,000
Rehab Cost - $20,000
Total Investment - $70,000
After Repair Value (ARV): $100,000

On a short term deal (less than a year), we would fix the property in a few months and then put it on the market and sell it. We would then recoup our investment, pay off our investors (or reinvest their money in a new project, if they prefer) and take a profit for ourselves.

On a deal like this, the selling and carrying costs will be (approximately 10%): $10,000

Our Profit on this flip deal: $20,000

The second type of deal we often do are:

LONG TERM DEALS

• On a long term deal, we would fix the property and rent it out to a long term tenant. We would get monthly income from that tenant. That would allow us to continue to pay interest on the investor's long term loan.

Monthly Income In The Previous Scenario ($100k house): $1200 per month income

Our profit: We don't typically take a profit until we sell the property, but doing it this way allows us to pay off the lender and keep the property for appreciation and future income (once it's paid off).

If we were to borrow money from a conventional lender for these kinds of deals, we would pay anywhere from 7% to 9% and it would still make sense and be profitable for us.

Banks also have other loan fees we would have to pay. We've used bank loans many times to do these kinds of deals in the past, but banks create a lot of unnecessary paperwork and bureaucracy and can be difficult to work with and it's much more pleasant working with private lenders.

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Q: Will the Private Money Lender be paid back less or more if the project does not do well?

A: Loan repayments are not based on the performance of the project. All Private Money Loans are paid back based on a predeterminined, GUARANTEED amount of time and return. If we defaulted, you will have the property as security to recoup your investment. To date, we have NEVER defaulted on a private money loan. We don't plan to start now.

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Q: Why not just use a traditional bank?

A: We also use traditional financing in certain situations but there are a few reasons why traditional financing might not be the best option in every situation:

• Speed. Traditional financing can easily require up to 60 days to close a loan due to coordination of inspections appraisals and title work.
• The high cost of traditional funding, which includes closing costs, points, doc fees, the list is endless.
• Traditional financing requirements are constantly changing, and frankly, if you've ever tried to get a mortgage, you know that bank underwriters are a pain in the neck.
• When dealing with a bank, we have less control over the deal if anything goes wrong. Sometimes there is a simple fix for a problem that a bank just can't get their head around. It's always easier to solve problems with people rather than with institutions.
• We buy a lot of properties, most traditional finance companies have a limit on the number of mortgages they can issue to one entity because of Fannie Mae and Freddie Mac rules.
• Almost every lender sells their mortgages to other companies when they are in a liquidity crunch. That means the relationships we build with lenders don't matter to them. Once they sell our loan, we have to make payments to a different company who we don't even recognize.

If we are going to create an ROI for anyone, we prefer it to be someone we trust and who trusts us. I don't think anyone likes to be treated like a number and we are no different.

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Q: I have no experience lending money.

A: The entire transaction is closed at a profession title company. They will draw up the paperwork and record the trust deed at the county recorder. This is all overseen by a real estate attorney.

If I were investing my money like this, the thing I would want to know is: Does the borrower have equity in the property I'm loaning against? Does the borrower have experience and successful outcomes with their investments? AND Do I like these guys? What is my gut feeling. No matter how good the deal sounds, don't invest with people you don't trust or like.

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Q: I do not know what Title companies, lawyers or documents to use.

A: We will take care of all these things. All you have to do is sign the documents and wire the investment funds to the title company.

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Q: I have failed at finding credible people to lend to in the past.

A: Real estate investing is not for everyone. The reason there are not a lot of credible investors out there is because it's a business that tends to eat it's young. It can be brutal - especially for beginners.

But once you've been doing it for 20 or 30 years, there aren't very many things you haven't seen. And since we've already made our major mistakes - and I can tell you, we made mistakes and they weren't fun. But, god willing, because of our experience we'll see problems before they arise.

And because of our experience, we won't get rattled, we won't run away, we won't give up. One thing about business - if you are an entrepreneur, you get paid to solve problems. If there aren't any problems, there's no money to make. So we welcome those problems because they mean opportunity.

Six Reasons To Invest Your Money With Us

1. Every Investment is secured by Real Estate.
2. It's a completely passive investment that earns income 24 hours a day, 7 days a week without fail. You don't have to do a thing.
3. Every investment goes through a reputable title company with a title policy in place and security in the form of real property.
4. Every Private Money Investor is added to the property insurance as an additional insured, just like a traditional mortgage company.
5. All the paperwork is completed for the lender and reviewed by title company lawyers.
6. We have flexible repayment schedules. For example, simple interest payments can be paid monthly, quarterly, bi-annually, annually or at the end of the loan term. We are pretty flexible, depending on the particular deal.

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That's all I've got for now. If you have questions, please don't hesitate to ask.

You might also want to read about our background and experience below.

You should also read our disclaimers that are required by the FTC (below). No investment is guaranteed - ever - and ours are no different. But we do promise to do our very best.

If you are serious about working with us, please fill out the form below and let's get going.

I look forward to meeting you, working with you and helping reach your investment goals.

Best wishes,

Joe Crump and Daniel Riegel

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Who We Are

Our company is owned and operated by two experienced real estate developers. Their names are Daniel Riegel and Joe Crump. They own property in Indiana and Illinois, including a local commercial property in West Frankfort, IL called “RV Storage Vault” The website for the Storage facility is at: https://RVStorageVault.com

The two principals in the business to tell us, in their own words, a little about their journey as real estate investors and developers.

We asked them not to sugarcoat it - to tell it like it is - to tell us the highs and the lows of their business over the past several decades. We wanted to give a true overview of who they are and what they are capable of.

It is our hope that their stories will show you their experience and resilience in this business over the long haul.