At Top Knotch Homes, our core business is buying, renovating and selling homes for a profit. We have a systematic and disciplined approach to this process. There is no guesswork.

When we purchase homes, we do not get a traditional mortgage. We need to be able to buy homes quickly, and the mortgage process takes too long. We obtain the majority of our funds from Hard Money Lenders. These institutions are used to such transactions and will usually lend us up to 80% of the value of the property. In order to cover the remaining portion of the purchase price, we borrow money from Private Money Lenders such as you. We typically pay 10 to 12 percent interest. Much higher than you will get at a bank! Your money is secured by a promissory note, and you receive a lien position on the property. We also take out an insurance policy on the property, so if something happens to it, your money is protected.

We typically ask for a minimum investment of $100,000. The time frame to renovate and sell a home is about 6 months, depending on the size of the project. When we finish the project, you receive your principal plus the interest payment. The goal is to keep turning that money for you, making you substantial profits so you keep coming back to us-building a long-term, mutually beneficial relationship.

There are no guarantees, but your money is secured by a promissory note and a lien position on the property. In addition to this, it’s the systematic approach we take in order to mitigate risk which is so important.

Here is some insight into that process.

When looking at a property to purchase, we run a “Comparable Package” on recently sold, similar homes in the immediate area. This gives us an accurate price range that we will be able to sell the home for, once we have renovated it. This is the “Sale Price”. We have an experienced, local Realtor double check our numbers for us.

Next, we go through every facet of the house to calculate the cost for repairs. We have a tried and true system we follow in order to eliminate costly mistakes and to give us an accurate cost to preform repairs to the property. Even with this proven process, we still add in a 10 to 15% Miscellaneous Contingency Cost just to be safe.

The other costs we have to account for while we preform repairs, we call holding costs. This is the interest we pay on the money we borrow, monthly taxes and utilities. These costs are pretty straightforward and easy to calculate. We also factor in closing costs and Realtor fees we incur when we sell the house. Again, these are pretty standard and easy to calculate.

By having accurate numbers for everything, we eliminate guesswork. We know what we can sell the home for once it is renovated and we know all the costs we will incur in the renovation and sales process. We simply subtract these costs from the end sale price, along with desired profit margin, and that is what we offer when we purchase properties. We call this the “Purchase Price”. If we can’t get the property at this price, WE DON’T BUY IT.

If at any time in this process, unforeseen costs are incurred, those costs will simply come out of our profits. You will still get paid your principal and interest.

It is the detailed, systematic approach we employ that protects your money and ensures our profits.

When you work with us, we will show you our numbers and how we analyze the deal on the specific property you invest in.

We look forward to a long and profitable relationship with YOU!