Participating lending program.

We have started a program where private real estate lenders (that is you) can participate in the price appreciation of the property that secures the loan you make to Gem Rentals.

Here is how this works

We find the property and buy it for cash.

• We remodel the property to our high standard.

• We rent the property for cash flow.

• You finance the property for us as the lender (we leave $20,000 equity in the property at a minimum)

• You get a first lien note on the property securing your loan.

• We maintain insurance sufficient to cover the loan in the event of fire.

• We mange the property as the owners.

• You collect 6% interest on your money (paid monthly) while the property is rented.

• When the property is sold you get your principal back. (about a five or six year hold)

• When the property is sold you get 50% of the profit on the sale.

For example:

2 bedroom one bath house

Value based on comps is $80,000

You lend $60,000

Remaining estimated equity is $20,000

During the holding period you collect 6% interest as much as $3,600 a year.

When the property sells for say $86,000 five years later you get your money back plus $10,000

Potential return over five year example is:

interest of $3,600 a year x 6 years = $18,000

plus $10,000 of sale proceeds after closing cost.

Total return of $28,000 an average of 9% a year.

If the property sells for a higher price you get more. In the example we assumed $6,000 in sales cost to sell the property. Anyone interested in this program Call me Jim Glasgow Sr. at 1-210-8298-7531 ext 1382

Why do we borrow from private lenders?

For several reason; because the banks make it difficult what with the new lending standards being forced up on them. Because the cost to make small loans (under $500,00) from a bank is high and we would rather pay you a better return then to give the money to the banks.

Because the banks make to short a loan term and then want another fee to renew the loan. I could keep going but you get the idea.

How are you protected: We have thirty five years experience doing this. Plus you get a first lien note that secures your loan so you get paid when the property is sold. Further we keep fire and hazard insurance on the property.