At Shelleyfield Realty, we provide our investors with loan terms that are favorable and flexible. If our ability to transition your financing into long-term debt through an institutional investor is impacted in anyway, we will extend your loan terms and provide additional months of interest payments. We also provide the security of a lien on the property being purchased so that you would assume Title if the property can not be refinanced which would be extremely rare.
Our average terms are between 8-10% annual return on a minimum investment of $20,000. We determine the rate based off of average market returns and what the property will produce in monthly rental income and after repair value (arv).
We provide all our investors with a promissory note that is notarized and lays out the terms of the deal at hand. This note provides our investors the security of being able to assume the property should any extenuating circumstances occur.
The basic concept is converting short term debt (your investment) to long term debt (30 year refinance loan). We purchase properties with distressed sellers and repairs that need to be completed. This allows us to increase the value of the property and buy at a discount all at the same time. When we refinance, we receive money from an institution and use it, plus the rental income to pay out investors.