Q. How do I Invest with you?
A. Typically we borrow money from private investors, securing them with a note and mortgage on the property. The investors receives a monthly payment of interest only. In some cases we also use Joint Venture Agreements, this gives the investor a tax write off but increases their liability.
**If you would like further information, please contact Dave Sacco directly at 734.458.1170.**
Q. What is a Joint Venture?
A. Joint Venture is a agreement between the private investor and my company Horizon Investments. The Agreement spells out exactly what we are purchasing, what our intentions are to sell or rent, when to sell or rent, also the responsibilities for each party and dollars amounts for who is putting up money. To review Joint Venture Agreement, please click on the link.
Q. How do Land Contracts work?
A. Land Contract is Agreement between the buyer and seller. Which spells out the sale price, down payment, interest rate, and how long the Land Contract is for. Everything in a Land Contract is negtionable between the buyer and the seller. Typically, we sell homes on land contracts, with a 10% down payment and 2 year due date or Balloon. We then work with the purchaser to clear up their credit report and help assist to refinance the home.
Q. What are Lease Options?
A. Lease Option allows tenant to purchase a property at a set price and also get a monthly credit towards the purchase. For example, if you rent a home from us for $975.00 per month, we credit you $50.00 - $100.00 per month towards the purchase. At the end of 2 years, you would have a credit of $600.00 - $1,200.00 towards the purchase of the home. Plus, your security deposit would also be a credit towards the purchase.
Q. What does a Realtor Agency Relationship consist of?
A. There are many different Relationship Agency Agreements. Such as Seller's Agents, Buyer's Agents, Dual Agents, Transaction Coordinator and Designated Agency. Click each one for definitions.
Q. What is a Purchase Agreement?
A. Spells out sale price, how the purchaser is buying the property, how long the purchase agreement is good for. Seller must provide clear title, Tax peroration or Non-proration, and if the seller is assisting or paying any of the buyers mortgage or closing costs.
Q. What is a Title Commitment?
A. A Title Commitment shows who the owner of the property , what liens are on the property and if the real estate taxes are paid or past due. A Title Insurance company ensures the purchaser and mortgage company exactly what liens or taxes due are on the property. Example, you buy a property, the title company shows no liens and taxes are paid in full. You later find out that the title company had missed a $50,000.00 mortgage on the property, the title company would then be liable to pay off the mortgage because they missed it.
Q. What is a New Construction Warranty?
A. On New Construction homes we provide a 1 year warranty. Which covers everything from a door jam to flooring, to roofing, the furnace, the foundation., etc.. To ensure your complete satisfaction.
Q. What is a A.P.R.?
A. Annual Percentage Rate - The actual rate including all your closing costs for the 1st year. Example: Your mortgage rep. says he/she can get you a percentage rate of 6.5%, your closing cost is $3,000.00. If you factor in your $3,000.00 this is what it is costing you to get a loan. Your 1st year interest rate would be approximately 7.125%. This is how a A.P.R. works.
Q. What is the difference between a Broker/Banker and Individual Bank?
A. Broker - Works with 10 to 20 different lenders and is usually always your best source to get your best deal. They will search for you to get the best closing costs and deal.
Banker- Works with their own lending criteria and loan money themselves and do not broker out loans.
Individual Banker- Examples: Comerica, National city, 5/3 Bank, etc.. Loan money like a banker but have their own criteria. You can always doing banking and deposits with them.
