How It Works
TheWealthInvestors.com was created by individuals who have been real estate investors for over 25 years purchasing everything from single family residences to mobile home parks and apartment complexes. This network of experienced investors and funding individuals and companies was created to take advantage of the opportunities to earn higher returns from rehabbing residential and small multi-complex apartment complexes.
We act as the liaison between funding and project. Our role as 'Project Manager' on each project funded thru the website is to vet the investor and project, allocate money as needed and required, advise both investor and funding source on all areas related to the real estate and rehab process.
It is completely free to create a project campaign on the website. We use a fee-based system which depends on several factors. We are paid a small percentage at the completion of each pay period (rentals) or at the completion of the financials of the project (rehab sale).
Depending on the experience level of each investor and overall time commitment required by TheWealthInvestors.com, each funded project will be assigned a Project Manager to oversee the project on behalf of our funding partner. A "General Management' project fee is assigned during the vetting process to be paid at the conclusion of the project. This fee can range from 3% of the gross sales price up to 10% of the net profit. Projects are assessed on an individual basis to determine the final fee.
Typically these projects are structured with a Deed of Trust or some form of recordable Deed to the funding partner, LLC, trust, or General Partner to collateralize the project. Funding partners can expect a steady income stream for cash flow purposes and the project investor can estimate holding costs on the project. Previous interest rates have ranged from 5-8% depending on the length of the loan, amount, risk, and other factors.
Typically these deal structures involve a Joint Venture Partnership structure, LLC, or trust offering a share of the equity to both the funding partner and the project investor. Profit splits vary depending on the capital structure of the deal. If a funding partner funds 100% of the purchase and rehab cost they typically can expect to hold a 50% stake on the net profit. Every deal is evaluated on its own merits and terms can vary.
We utilize an escrow company to handle all of the project's transactions to ensure complete transparency and the protection of all parties. The General Partner or "Project Manager" is assigned by TheWealthInvestors.com and will provide bi-weekly updates on the project and is responsible for authorizing the allocation of all capital transfer requests. Funding transfers typically occur 3-5 times during the rehab phase of the project beginning with the purchase date. The funding partner's capital will sit in an escrow agent's account until the project is funded and/or the purchase/rehab phase begins. The capital is then forwarded to the appropriate account for dispersion into the project. Details of the escrow account are provided on a deal by deal basis.
For more information please see our FAQ section.