What Better Place To Put Your Money To Work Than Real Estate?
- Your money is secured by real property.
- With our program your annual cash profit return on the money used to buy the home will be much better and more predictable than the stock market, commodities and most every other income producing opportunity?
Everyone Knows There Was A Real Estate Crash Beginning In 2006 and Continuing Through 2009. So Why Is This Program Good Now?
That crash created this opportunity. We are buying properties at distressed prices and not at inflated prices that were common in the 2-3 years prior to the housing crash. There is always a risk when you decide to put your money to work. However, with inflation continuing in the US and interest rates being paid by the banks near 0% leaving your money sit is costing you money.
Some like buying stocks, or funds that mirror the Dow, S&P or Nasdaq. In 2013 all had a good run. However if you look at the last 10 years the annual return was less than 6%. Then there is the nail biting factor – worrying about the next down cycle. You see your money is part of what is happening in the global markets – something you have no control over.
When you buy it right we think there is no better place for your money to earn money than real estate – the right real estate. We are delighted to offer you our Turnkey Income Producing Home Program. We hope you take a serious look.
What Is A Turnkey Income Producing Home?
A turnkey income producing home is where the final buyer has an income producing property titled to them in exchange for the purchase price. The buyer of the property has clear title. The home has a tenant. A tenant is person or persons who qualifies by their income and deposit money to rent the property. Tenants for the turnkey income producing properties offered by this program sign leases for no less then one year and often two years.
Why Is This Program Named Turnkey?
The final buyer has almost no work to do. We find the property, renovate the property, find a qualified tenant who moves in and pays rent. The rent is collected by a property manager and the final buyer receives a monthly income check. You, the final buyer, are responsible for paying the taxes and insurance on an annual basis plus filing your tax return. All else is handled for you including the coordination of repairs and maintenance. You won’t ever have to worry about calls in the middle of the night with some water leak or other malfunction in the home.
All of our properties have gone through an extensive quality control evaluation and all necessary repairs and replacements have been made before the home is turned over to you. This reduces the risk of any significant repairs and maintenance in the first couple of years. All of our cash on cash return forecasts include a 10% of monthly rent provision for repairs and maintenance. You have the option to set this money aside yourself or have us pay this money to an escrow account on your behalf whichever you prefer. We advise on the escrow account so the money is there when it is eventually will be needed.
What Is Cash on Cash Return?
This is best illustrated by an example. If the purchase price of the house is $50,000 and your net rental income is $10,000, then your cash on cash return is 20%.
What Kind of Homes Are Purchased?
Most homes are moderately priced in neighborhoods where you find hard working people. In all cases, the areas are safe and in locations that are attractive to people who want to live in a home, but are not in a position to obtain the necessary mortgage for a home.
Are You Saying The Cash On Cash Return for This Program Is 20%
It can be that or very close to it, depending on which buying program you prefer. That brings us to the next section:
We Offer Two Programs For Buying Turnkey Income Producing Homes
Program A: Buyer Funded
We offer the highest returns for this program since the final buyer is funding the purchase and cost of renovating the property. When the buyer funds it we do not have to use our sources of capital and our costs are lower. We pass savings to the buyer in the form of higher return.
The following are the steps in how this works:
A person tells us they want to be in this program and produces a proof of funds for amount of money they want to spend. The average price at this time is $50,000 with some properties lower and some higher.
The buyer confirms their intent to proceed by wire transferring a 5% deposit to the escrow account of the title company used in the process of purchasing the home.
We find a home that matches the buyers cash availability and fits our formula for achieving a near 20% cash on cash return for the buyer.
We advise the buyer we are in contract. At that point the remaining funds required are wired to the escrow agent.
We proceed to close on the purchase of the property. Once closed, the renovations begin immediately and we proceed to find a qualified tenant for the home.
With the tenant in the home the process is concluded. The buyer then coordinates with the property management company for the receipt of monthly rent checks.
Program A Variation: Buyer Obtains Financing and Funds The Deal
For this program, the buyer has a 5% down payment for the deal and 20% or more down payment and qualifies with a bank for a mortgage on the property. In the $50,000 example the buyer deposits $2,500 with our escrow agent and present proof of bank qualification. This is advantageous with today’s mortgage rates because the buyer can still net close to 15% with a mortgage on the property from their bank. If you are interested in this program, get pre-qualified with your bank first. You can also check with us as we are in the process of having several banks who will be friendly to this program.
Program B: Our Firm Funds the Deal
Many buyers prefer to close on a finished product. Our buyer funded program is new and to this point all of our deals have been ones where we have funded the purchase and renovation. As previously mentioned, when we fund the deal the return for the buyer while excellent, is less than the buyer funded option.
Is There A Referral Program?
Our referral program is very simple. If you refer a qualified buyer to us who closes a deal, you are paid a referral fee on the transaction. Generally our referral fee is 6% of the buyers purchase price.
How Fast Can I Close And Be In A Deal?
Most of our properties are completed in less than thirty days of receipt of funds.
What Are The Next Steps?
1. This program is moving fast. The best way to get in this program and get your money working now is to contact us for our escrow agent for accepting a refundable deposit. This gets you in line for the next deal. Of course you can be on our alert list for when we have a property that meets your criteria (we probably have one now!) So decide what price range of a home you want. We have one property for $147,000. We have others for $60,000 $50,000 and $40,000. Contact us for details based on the purchase price range that is a best fit for you and be prepared to proceed getting you money to work.
2. You can contact us at anytime with any questions you have. Contact Information
Steve Pohlit, Managing Partner
US Real Estate Partners
PS How Safe Is My Money?
Our success is based on your money being secured by the property at all times. If you fund the deal, the only money available to us is the agreed upon amount for renovating the property. Otherwise we never have access to your money. You deal directly with a licensed bonded title company.