Who is Insider’s Cash? What does the company do? And are they a legitimate business?
Insiders Cash is an American company that specializes in financing real estate deals on a short term basis and selling notes.
The company caters primarily to real estate investors vs home buyer which is why the longest loan they offer is 2 years instead of a traditional 15 or 30 year mortgage. The short term loan strategy has proven beneficial on a couple of fronts.
First, with an immediate short term loan an investor can quickly purchase a property instead of have to wait for banks to take their sweet time to go through the closing process, often costing investors lost rent revenue or missing out on a deal completely.
Second, with loans up to 2 years, it gives the opportunity for investors to shop around for better deals or simply get approved for longer loans.
The funding options that Insider’s Cash provides can be found on their website or by clicking here. For convenience I also copied their deal terms below.
Commonly known as ABC or ‘Flip’ deals, Insider’s Cash can provide the funding you need to complete the transaction in compliance with federal lending and escrow guidelines.
By providing separate funds to close the purchase of the home, when your buyer brings in funds, Insider’s Cash is paid off, and you keep nearly all the profits. Our 1-3 Day Transaction Funding program is perfect if you already have your purchase and sale ready to close.
- • LTV: 100% of purchase price
- • Term: 1-3 days (money kept in escrow)
- • Participation Fee: $495
- • Interest Charge: 2% of loan amount (minimum fee $3,000)
If the type of real estate transaction you’re doing will take longer than 24 hours to complete, you should use the Insider’s Cash 3 month program.
Perfect for minor rehab properties, properties that will take a little longer to market, or any deal that requires seasoning, this program helps you take advantage of more opportunities by providing you with quick and simple transactional funding.
- • LTV: 75% of purchase price
- • Term: 3 months
- • Participation Fee: $795
- • Interest Charge: 3% per month for each month the loan exists (minimum fee $5,000)
As a real estate investor, getting the most competitive bank financing at the lowest rate is one of the most important factors that influences the profitability of your business, on properties you intend to hold.
By working with Insider’s Cash on your existing free and clear properties, or future purchases, you double the amount of working capital you have and thereby increase your cash flow, appreciation, and tax deduction opportunities.
- • LTV: 50% of purchase price
- • Term: 2 year
- • Participation Fee: $3,000 minimum
• Interest Charge: 1% per month (% only payment)”
The second way in which Insider’s Cash conducts business is through the sale of Notes. Notes are essentially loans that they have created and sell to other investors. Just like a bank or broker would sell a loan they have lended, an investor will buy these loans and make the interest.
The original question was if Insider’s Cash is a scam. The answer is easy to see that no. If they fall into the category of scam, then realistically so should any other bank or lending institution. All of their business transactions are legal and legitimate and they boast an incredibly satisfied clientele.