Monthly Archives: April 2014

Turnkey Residential Real Estate Investment – A Clear Picture As To Why This Is Exciting – Take Notice

turnkey residential real estate I thought about posting in the title “Turnkey Residential Real Estate Investment Simplified” Then I remembered all the time I have personally spent studying and working in this niche and concluded – wait a minute: this may be clear to me but it is likely that many people do not understand this model. It is my mission for you to understand this model as understand how valuable and exciting this program is for you.

Turnkey Residential Real Estate Program Defined

The key word is “Turnkey”. This means a property is purchased, renovated and rented to a qualified tenant. When rented with at least a one year lease to a qualified tenant that property is sold to buyer who then owns the property and collects the net rent.

The net rent is the basis for the important cash on cash return (see next section). The buyer does not have to worry about getting the tenant or replacing a tenant. The buyer does not have to worry about collecting the rent. The buyer does not have to worry about calls for repairs or maintenance. All of those details are handled by a professional property management company that follows very strict operational guidelines that we establish.

The Information On This Program Is Valuable for Investors and Funding Partners

Our Buy and Hold Turnkey Residential Real Estate Model For Investors

Our buy and hold model is for one person or fund who has $30,000 or more of cash in the bank or in an IRA that wants to earn a double digit cash on cash return secured by the property. This means you own the property. You are not sharing the ownership. You own it.

As an owner you will receive with our program on a $40,000 property  (example – actual numbers can be higher or lower depending on the property) a return on your money of at least $4,800 net per year and likely more depending on the deal. That is a 12% return and to be clear we are currently offering 15%.

The best value for investors is to fund the purchase of the home when we find it plus the renovation costs. This is  because our costs are lower and we pass the savings on to you. This means you have more equity and a higher cash rate of return as soon as the renovation is complete and the property rented.

The returns are not guaranteed. You will know our projection before you close on the deal and decide if the property is right for you.

Turnkey Real EstateBuy and Flip Turnkey Residential Real Estate Model for Funding Partners

This model is for funding partners. What that means is we partner with people and funds interested in funding the purchase, renovation, administration and holding costs – All In Costs) of a property that meets our buying, renovating and renting criteria.

When the property is done it is marketed and sold to an individual or fund that wants the double digit annualized cash on cash returns described above. Funding partners want their money moving and our program is perfect for them because of the high turnover rate.

Normally it is 60 days or less from the time we buy a property until the time we sell it. That is six turns a year. We currently are paying 10% for up to 60 days use of the money, secured by the property. That is a 60% annualized return on investment secured. The money is secured by a legal first lien on the property.

If you want more information on our funding partner program please see the contact information below.

Risks (Visit competing sites and see how many are open about the risks. You will fine none.)

Everything involving money has risk. If you leave your money in a bank, it loses value at today’s rates. If you invest in the stock market, precious metals and other market driven investments, the markets control the value – you don’t.  Real estate can also go up and down and value.  Your control is the timing of when you buy.

Right now we have many opportunities to buy properties at low prices so the downside risk is nominal and the upside potential is very positive.  With that, buying the right property in the right location for the right price takes skill. Even with that we never make the decision for you. You always have the final vote on whether to proceed or not.

Risks For A Turnkey Real Estate Buyer

For the buyer of a completed turnkey property the primary risk is that something major goes wrong in the first three years of ownership requiring an outlay of cash which reduces the annualized return on investment. We reduce the likelihood of this risk by the criteria we use in buying and renovating the property. We use an independent licensed inspector not part of the contractor team before we renovate and after we renovate. We know and the buyer knows the condition of all main structural areas of the property including : roof, heating, air conditioning, plumbing, electrical. Our goal is to only sell a property that will not require any major repairs for at least 3-5 years. Note the risk remains because of unforeseen circumstances.

The buyer also has the risk of changing market values.  Most remember the real estate bubble burst beginning about 2008.  We buy at distressed prices which reduce the risk of further declines. In fact many of our properties have 5-10% equity at the date they are bought because we are selling a below market value prices whenever possible.

The final most common area of risk is tenant care of the property and turnover.  We have a  very specific policy on qualifying tenants. This is has helped us find quality qualified people for your property.  It is true some people will need to  move but because our properties are very well liked by our tenants, they prefer to stay and they take care of the property.

Risks For The Funding Partner

All properties are inspected and we receive an inspection report from a licensed experienced property inspector. That supports our renovation cost estimate.  The risk remains that other required repairs are found after the property is purchased. Normally these are minor items.

Our funding partner formula include a contingency provision. However it is possible something unusual is discovered requiring additional funds to complete the renovation. The funding partner is protected because we pay interest on the amount funded.

The timeline from date of purchase to date of sale to the end buyer with a tenant in the property is estimated to be no longer than 60 days.  Our experience demonstrates closer to 40 days. However, that could be longer. We pay 10% of the total amount funded even if we are completed with the process in less than 60 days.  In the unlikely event a project goes beyond 60 days we pay an additional 2% per month.

There Are Risks! However With Our Turnkey Residential Real Estate Program Your Money Is Always Secured (First Security Interest ) by The Property.  This Is Done With Legal Documents That Must Be Filed With the State and Through a Licensed Title Company

A concluding comment

My firm has extensive experience with residential buy fix and flips. commercial multi-family buy and hold, new development and more. I have not seen the equity gain and cash on cash rate of returns like the ones currently available in the Turnkey Residential Real Estate Model.  Act fast if you like this as the opportunities will fade.

For more information or to reserve your spot for our next great Turnkey Residential Real Estate Property Contact Me Now

Steve Pohlit, Managing Partner
US Real Estate Partners, LP
727-587-7871
Email 

Turnkey Real Estate Investments – How Well and Secured Is Your Money Working For You

turnkey residential real estateTurnkey Real Estate Investments

Turnkey real estate investments offer a tremendous opportunity to grow your passive income. We  purchase residential real estate at steep discounts, renovate the property, secure a lease with a carefully qualified tenant, all handled by a very qualified and professional property management company.  Then you cash the checks and watch your equity grow.

Join the growing group of people experiencing the benefits of  turnkey real estate investments as a primary source of passive income. You will immediately  benefit from our bargain purchasing power.  Our construction partners offer a renovated single family home along with experienced local property managers. This combination means  you have  instant equity as well as positive cash flow. Our cash on cash rate of return currently is higher than 14%.  Try to get that from having your money sitting in a bank.

We provide a “One Stop Shop” which saves you countless hours of research and due diligence. You will know the equity and cash flow that begins the day you buy the property.

Just some of the ways we bring value to you with this program:

-Researching which markets make the most investment sense

-Locating property where there is strong rental demand.

-Qualifying tenants and administering a lease at market rental rates.

– Not all companies offering turnkey real estate investments are alike.  With us you get a finished product with a tenant and you earn equity and cash flow starting with the day you close.

We pride ourselves in getting to know you personally and value meetings to help you fully understand how this works. We are happy to review all the details with your attorney. Bottom line you are buying a home that you own with a tenant who produces great cash flow with all details handled by a property management company.

Give us a call today to take advantage of our turnkey real estate investments.

Steve Pohlit. Managing Partner
US Real Estate Partners, LP
Email 
Ph 727-587-7871

Turnkey Residential Home For Sale – Available Now – High Cash on Cash Returns – 3791 E 149th St, Cleveland, OH 44128

Turnkey Real Estate Property Available Now

Instantly appealing – nice home featuring three bedrooms and one and a half baths. The kitchen has ceramic tile floors. The large patio can be accessed from the downstairs bedroom. The patio extends to the garage and includes a covered section off the garage. The large yard features a chain link fence including a gate for the drive way. The newer oversized two-car garage is a great place for hobbies or other work and includes a gas furnace, work benches & electricity.

3791 E 149th St, Cleveland, OH 44128
1174 sq ft
3 bedroom 1.5 bath
2 car garage
Click Here for Zillow listing

Three Ways To Make Money With This Property

First: Buy The Home

Price$37,000

This will renovated for a qualified tenant and be rented early May 2014

You value increases by more than 13% or an estimated $5,000 of immediate equity. When the renovation is complete and a tenant is in place.

Cash on Cash return is estimated at 18% after consideration of insurance, taxes, property management and reserve for repair and maintenance. This is fantastic and may not be a typical return. Get this deal now.

Alternative Two: Fund the Purchase Price and Renovation

Amount $29,000
You are paid 10% for a 60% annualized return and possibly higher

Third Alternative for Making Money: Refer To Us A Buyer or Funding Source

Referral Fee: $500

Check Out These Actual Numbers for A Turnkey Residential Real Estate Property – Get Your Money Working For You Secured!

Turnkey Investment HomesActual Numbers of A Turnkey Residential Real Estate Property Transaction:

The following demonstrate how a typical turnkey residential real estate property deal works. These are actual numbers from one of our deals. While every deal is different in terms of the actual numbers, the percentages here are representative because that is our model.

What Is A Residential Turnkey Real Estate Property?

A turnkey residential real estate property is a home that has been purchased, renovated for a tenant, is now occupied by a qualified tenant and is producing very attractive cash on cash rates of returns for the final buyer. The buyer which we name a financial buyer because all is done for them, they simply are paid the monthly cash flow profit. Cash flow profit is the rent paid, less a reserve for taxes,insurance,property management and repairs and maintenance. The net profit for the final buyer results in double digit cash on cash returns for the buyer on an annual basis.

In this article we are focused on the cash on cash returns for the person or company who is our funding partner. The funding partner provides the cash for the purchase, renovation and holding costs of the property. Our doors are open for funding partners and financial buyers.

Actual Example

Property Description: 3 bedroom  1.5 baths 2 car garage  Note not all properties have garages and some may be smaller. The key success factor is the demand by a tenant. We buy properties where we know the rent that will be paid and we know it will be rented quickly.

Purchase Price: $20,000
Renovation and holding costs $9000
Total All in Cost $29,000

We project a two month  time line for buying the property. completing the renovation, securing a qualified tenant and then selling the property. Our experience is less meaning the average time has been closer to 30 days. However to be conservative we project 60 days.

What We Offer The Person or Company That Funds The Deal

Funding the deal means in this example providing the $29,000 or all in costs. In exchange we offer 10% plus the cost of recording the lien that secures the money with the house.  This means the money is 100% secured by the property. Here is what else we do. In the unlikely event the house has not sold in 60 days, we agree to pay 2% per month on top of the 10%

The principle and interest are guaranteed by the deal.  What this means is you are the first to be paid when the property is sold. So at closing your principle and interest are wired to you by the title company. You are listed on the selling HUD statement – a legal document required to be filed (the title company files it) on every property purchase or sale. We also prepare and record a mortgage for you on the property which is a lean for the full amount that your funded plus your interest. This is another legal document that gives you assurance you will receiver your principle and interest at closing. See the next section where we give you the valuation of the home in this example that secures your money.

If you do the math using our 60 day estimate, that is 6 turns (360 days divided by 60) 6 turns times 10% is 60% annualized.  Are you beginning to see how exciting this program is for those who work with us.

What Is The Value of The Home That Protects The Money?

As we previously mentioned the value of the home is driven by the rental income for the property.  We set the selling price so the final buyer is getting an annualized return on their money of 12% or higher. In most cases it is higher. That is a net number. What that means is the return is calculated after we factor the cost of insurance, taxes, reserve for repair and maintenance. So the net cash flow to the end buyer is 12% or more – most cases more.

In this example, we are selling the property for $42,000.  We know this is a good value because we double check our selling price assumptions with a CMA or comparative market analysis that is provided by an expert real estate realtor.

Do You Like This Idea of How Your Money Can Work For You?  If so then contact me and we can discuss if this program is right for you.

Contact

Steve Pohlit, Managing Partner
US Turnkey Real Estate
727-587-7871
Email

Note: Every effort is made to present accurate information. Each interested person is responsible for completing their own due diligence on turnkey real estate opportunities. Every house is different.  The information in this example is for an actual home that is available at the time this article is published.