What Are The Two Most Important Criteria for Real Estate Investors?
A primary product of our business is single family homes already occupied with a contract for deed and promissory note. Right now we have 13 houses occupied and fully performing meaning the people in these houses are paying on time each month. The as is value of these houses is 30-50% higher than what we can buy them for. This is because these houses initially were unoccupied and were acquired by the current owners at deep discounts As our marketing partner found people who wanted to buy the houses on terms the people had to do the necessary repairs so they could live in the house. As these repairs were completed the value of the house increased.
As an example of a typical deal the current owner pays $15,000 for a house. The person who wants to buy the house on terms signs a promissory note with the owner for often times double the price paid or $30,000. (All numbers are illustrative but are representative of how it works). Checking on line sources the estimated value after repairs could be $45,000 or more.
Everything is 100% turnkey meaning once these houses are purchased the only things that change is the deed and note are recorded in the name of the new owner and the monthly payments are sent to the owner. The cash on cash return on investment on the 13 houses is 15%. Cash flow is immediate.
If you are note clear what this means, think of how most people buy a car on terms. They do not own the car until the note is completely paid. Our houses work the same way. The owner has the the deed until the note is paid off then the deed is transferred to people paying for the house on terms. .
We have partnered with the owners of these houses and will sell them occupied for cash. We are also networking for favorable rates from lenders to buy these houses in our own LLC. When we are successful with a lender that likes our model we will expand to acquiring many more houses like the 13 an we can because we have the network. Please note this is a nationwide program. The 13 houses are in 9 states. Our partner company has been acquiring and managing houses for over 10 years on a national level. This model is not an idea. It is one that is proven.
Again whoever buys these houses get the deed and the promissory note. The owner can hold the property or resale the property for a likely gain as the notes become more seasoned. How is a gain possible? The longer the note is performing the more interested are note buyers where the note is backed by a deed.
Cash On Cash Return on Investment is 15% Net for the 13 houses available now. Note the owners are selling at a discount from the promissory note amount that results in the return being higher than the face amount of the note.
Security – Completely backed by the value of the property which is always higher than the price paid for the property.
This is a completely hands off process for you. You buy the house or houses for cash and the rest is all handled for you. We have an affiliated partner that finds these deals and services the property. Services means they collect the payments and make sure the property taxes are paid.
Better Alternative Than Wholesaling, Flipping , Renting
This is secured, predictable, minimal risk and no work on your part.