Q1: A3 Are there any sign up fees associated with doing business with PADeals.com?
A1: No, although there really should be. PADeals.com may eventually create a membership with annual fees, but for now there is no charge at all to do businesses with PADeals.com. The only time fees comes into play are if and when you use the Rehabbing Assistance Programs and Marketing Assistance Programs which are both optional. They are priced from between $495 - $995 per deal.
Q2: How does PADeals.com make money if they don't charge any fees?
A2: PADeals.com makes money by building their profit into your purchase price. For instance, if PADeals.com bought 123 Main Street for $45,000, they would be selling the property for more than that to you. We utilize many ways of finding real estate bargains ensuring you never pay more than 40 -60% of the properties true fair market value.
Q3: If PADeals.com is building their profit into the sale price, how do I know I am getting a good deal?
A3: There are a few answers to this question. First, our lenders only lend 70% of the property's fair market value, which is determined by a licensed appraiser hired by the lenders. In, addition, as a safegaurd against loan defaults, lenders will not loan money on a deal if the property is not priced well below true market value. Another way to assure that you are getting good deals is to run comps, which are nearby properties similar to the one you're considering buying that have sold within the last 12 months. You get comps from a local real estate agent, or you can obtain them through PADeals.com for free.
Q4: If PADeals.com is selling their clients such good deals why do they need me to get involved with the company? Why give away so much equity and profit?
A4: PADeals.com has a clearly defined business model that calls for income to be generated by four methods of real estate investing: long term buy and hold rentals lease option sales buying, fixing and reselling to owner occupants and finally, wholesaling properties to investors.
Q5: What are the costs of obtaining private financing?
A5: Our affiliated lenders charge 4 points and 12 percent annually. For example, on a $50,000 loan, they would charge $2,000 in points and $500 a month interest only payments. Don't worry - all up-front points are rolled into your loan as part of the closing costs. These terms may seem high if you're a new investor, but similar loans offered elsewhere would charge between 5-8 points and interest rates rates of 15-18 percent annually.
Q6:What are the requirements for obtaining private financing
A6:Their affiliated lenders require a credit score of at least 670 and liquid cash of at least $10,000. They also require proof of steady income, with adequate monthly cash flow after all living expenses.
Q7: If I use the Rehabbing Assistance Programs will PADeals.com will handle my entire rehab for me and guarantee the work?
A7:No. The Rehabbing Assistance Programs are simply a “helping hand” along the way. You are still responsible to monitor the progress of your project, communicate with your contractor, visit your property and make tough decisions when needed. Check out the Rehabbing Assitance Programs section of this website fer details on how this service can make life easier for both new and seasoned investors.
Q8: On average how long does a typical rehab take to complete if I use the Rehabbing Assistance Programs?
A8: On a $10,000 job the project in most cases will be complete in 6 weeks.
Q9: If I use any of the Marketing Assistance Programs am I guaranteed to rent, rent-to-own or sell my property in a certain time frame at a certain price?
A9: No. If using any of the marketing programs there are no guarantees as to how long it will take to rent or sell a property. We do however have a dynamic team of professionals that work very hard to make the most of what your property has to offer.