How we work – The Investor

The Investor

Are you looking for an excellent return on investment all the while having your principal secured by holding a mortgage on US real estate properties? Then being an investor with The Whole Nation, Inc. is the right choice for you.

The Initial Investor

We use the money from the initial investors to purchase distressed properties plus other properties that are selling below their value (Short Sales, foreclosures, etc). We then fix up these properties and either rent them out to create a monthly cash flow or we resell the rejuvenated property. We have an amazing team of Project managers and licensed contractors who do amazing work and will ensure the property is in excellent condition.

When you enter into an investor relationship with The Whole Nation, we will sign a promissory note for you in the amount of your investment plus a very high interest rate. The agreement will be for two to five years. At any time, the investor can terminate the agreement with 90 to 365 days written notice. If The Whole Nation decides to terminate the agreement early, we will repay the principal and the full interest that is due to the end of the next payment period.

Your annual rate of return will be between 5% and 7% depending on the terms of the agreement. We start at 5% for a two year term with monthly payments and 90 days notice to terminate the contract early. You will gain 0.5% for increasing the notice to terminate from 90 days to 365 days. Another 0.5% can be gained by increasing the term of the loan from 2 to 5 years and a full percentage point can be gained by going to annual payments from monthly payments.

Example #1: Monthly payments on a two year term (with 90 days notice required to terminate) will yield a 5% return on investment. We will send you a cheque at the beginning of every month for 0.416% of your original investment.

Example #2: Annual payments on a five year term (with 365 days notice required to terminate) will yield a 7% return on investment. We will send you a cheque every year on the anniversary date for 7% of your original investment.

 

The Long Term Investor

Once we have renovated, we have a renter in place and the property is generating sustainable monthly cash flow then we often look for a secondary investor who is looking for a safe and reliable long term investment. We will look to our long term investor to help us refinance our properties at a maximum of 75% of the actual market value. We will pay you 6% per year over a 5 to 10 year term (paid in simple interest every quarter) and your principal is protected as you will hold the first (and only) mortgage on the property. We will never over extend ourselves by refinancing to a level that is not easily supported by the net income from the property (including ALL expenses: maintenance, property management, HOA fees, taxes, insurance, one month vacancy per year, etc).

 

For all investors, your original investment principal will be returned to you upon termination of the agreement.

During the duration of the agreement, any time that your money has been used to purchase a property, you will hold the first mortgage (or a lien) against said property in the amount of your capital investment. This will help keep your principal safe.