Monthly Archives: May 2014

US Debt, US Dollar, and Turnkey Residential Real Estate – How Are These Connected

US Debt Exceeds $17 Trillion : Value of The Dollar Continues It’s Decline

The US Debt exceeds $17 trillion and that is just what is reported.  Unfunded liabilities are a multiple of the reported debt.  The Value of the US Dollar Decreased by 2% since 2013 and 2014 is not over. It is important to act prudently and grow your money -the value of your assets considering rising debt and the continuing devaluation of the dollar.

When Bought Right, Turnkey Real Estate Is A Sound Strategy For Your Money

Reminder: Turnkey Real Estate is property that you own, has a tenant that is paying based on a lease and where there is property management handling all operational requirements of the property.  Cash on Cash Net Return means the cash the property owner receives after deduction the money for insurance, taxes, property management and reserve for repairs and maintenance.

Our Turnkey Real Estate Program offers you the opportunity to double your money in about 6 years.  Realistically it could be less. There are sound reasons why the time line could be 4-5 years. Throughout that entire time you own the asset. You can see it and touch it if you want. When you have all your cash back you still own the asset (the home titled in your name) and you can then continue buying properties if you want.

Turnkey Properties Are Rational 

You know what a house is. You understand that property management in place handles nearly all of anything you need to be concerned about. You can see evidence that the purchase price for the property is not only fair but often times a bargain. You can get to know the tenant or never meet the tenant whichever your preference.

To Be Clear

As an example a property that you can buy for $45,000 and delivers a net cash on cash return of 15.6% returns $45,000 to you in 6 years and 3 months. Remember you own the home. In 6 years and 3 months you also have $45,000 sitting in the bank. Can the value of real estate go down?  Of course and we witnessed this beginning in 2007.  Our program focuses on distressed buys with good rental demand in markets starting to grow again. Our view is the risks are very minimal.

Want to Know More? 

Here is a brief description of what is available now: Click Here Plus my contact information follows.

Contact me

Steve Pohlit
Ph 727-587-7871

Requesting Funding For US Turnkey Real Estate

We are very flexible in how we proceed with the options.

Option 1 –  Requesting A Loan of Up To $2.4 Million At or Less Than 8%

Goal : Acquire Turnkey Residential Real Estate Properties that meet net cash on cash return criteria of not less than 14 % annually.  For more of an explanation of turnkey please click here. Briefly a turnkey property is one that is renovated, has a tenant and property management in place.  The owner is not actively involved as the property management company takes care of everything.

At this time there are 65 homes available with total cash on cash return of  about 15%   The purchase price is $2,375,000.  That is the loan amount I am requesting.  In addition, there are approximately 10 homes each month becoming available.  I estimate approximately $400,000 a month is needed to buy these homes.

Option 2:  Requesting a Financing for Homes Owned with FMV of approximately $240,000 Plus a commitment to finance out approximately 6 homes a month until 30 are acquired.

My client is ready to purchase 6 of these homes for cash then wants to finance out. He is open to LTV of 80% or possibly 70%. Please note his goal is to acquire 30 homes over the next 4 or 5 months. For this to work the financing rate needs to be 8% or less.

Security For Both Options: 1st secured interest in the homes.

Please advise as to your level of interest and terms/conditions.

Steve Pohlit, Managing Partner
Steve Pohlit International, LLC
Ph 727-587-7871

Residential Turnkey Real Estate Opportunities – Check Out the Cash on Cash Returns

Note: My company is not an agent or a broker. We are assisting one of our coaching clients in growing their business.

Turnkey Residential  Real Estate This is the latest update as of 5-13-14

Reminder: all properties have a tenant in place and when cash on cash return is stated this means the best estimate return on investment after deducting insurance, taxes and property management fees. A buyer pays cash and collects the rent checks. All else is handled. And of course your money is secured by the property which is titled in your name or your company name as you prefer.

Single Family Residential Turnkey Home

This property is newly renovated. Purchase Price $43,567 Cash on Cash Return 16.9% Fantastic opportunity Click Here for pictures and additional details

6 Single Family Residential Turnkey Homes – Buy One or More

These properties are under contract have tenants and require very little renovation. Purchase price ranges from $39,400 to $50,500 The cash on cash return for each property is 15.6% Call or email me for more information. (Contact information at the end of the article) These are new into our pipeline and I should have them on this site in the next day or so.

60 Single Family Residential Homes – Bulk Buy

Bulk Buy Residential Real Estate Purchase Price $2,075,000 Cash Cash on Cash ROI is 14.3% Click Here for more information In summary,these homes are in great condition and should not need any significant repairs for more than 5 yearsl

How To Calculate The Number of Years You Have All Your Money Back and Remember You Already Own The Property

Step 1 Divide 100 by the stated cash on cash return on investment
Step 2. There is no Step 2

Example for a 15.6% cash on cash return on investment 100 divided by 15.6% is 6.4. So that is 6.4 years. .4 of a year is .4 times 12 months or just about 5 months. So in this example you own the property, it continues to pay you income and you have all of your original cash investment back in 6 years and 5 months. If you brought properties for $100,000 you would have those properties plus any appreciation value (in today’s market you can reasonably count on the properties we market to appreciate – ask me what I think.) So you have the properties plus your $100,000 back in the bank or your IRA. So in six years and 5 months you have doubled your money then you go on to continue to make money from the property with no money in the deal That is why I love this model.

A Great Leverage Idea

What is leverage? This is where you use your money along with other people’s money to build an even bigger portfolio of assets and cash flow. For example you buy turnkey residential houses with a cash on cash ROI of 15.6% So to accelerate your growth you buy the properties cash and then finance the properties on a loan for say 30 years at a 6% interest rate. Now you are earning 9.4% cash on cash and then since you have your $100,000 back you are able to buy more properties and do it all over again. Will it work this way. It could more than likely a financial institution will not loan you all of the $100,000 maybe it is $70,000. We are developing our financial network for you so you will have options like this available to you.

For more information

Steve Pohlit, Managing Partner
Ph 727-587-7871

Residential Real Estate Bulk Buy Opportunity

Bulk Buy Residential Real Estate

My firm is consulting with a client that is offering 100 residential properties for sale. There are actually two sellers. Here is the breakdown.

Seller 1: 40 homes Purchase Price $1,800,000 Net Annual Rental Income $275,000 (Note This Group Is Currently Not Available)

Seller 2: 60 homes Purchase Price $2,075,000 Net Annual Rental Income $297,875

The Projected Annual ROI for the whole package is 14.8%

Qualified Buyer will provide Letter of Intent and Proof of Funds. Confidentiality agreement is also required. Once in place full disclosure of the properties will be provided. There are many positives for this deal including:

Final ROI may be higher.
Seller 1 homes is all Section 8 homes.
Seller 2 homes are in much better than average condition.
Seller 2 has 10 vacant properties which we expect to be occupied in less than 30 days. We have used a very conservative rent number in estimating the net rent for those.

For More Information

Steve Pohlit, Managing Partner
Tampa Capital Properties, LLC
Ph: 727-587-7871

Turnkey Residential Home For Sale-Qualified Tenant Signed- 16.9% Net Return 3791 E 149th St Cleveland,Oh 44128

One of my coaching clients, recently completed this project and it now available for sale

Turnkey Real Estate Property Available Now

Price $42,567 – Cash

Newly renovated: new plumbing, finished basement , new kitchen floor, interior paint,
Very good tenant in place. Lease just signed
$800 per month rent collected.
Projected net rent collected after insurance, taxes and property management $600
Annualized cash on cash return – 16.9% projected
Property management in place
Buyer receives final inspection report so you know the exact condition of the property
100% turnkey – buyer is paid the net rent monthly

More Pictures Coming Soon!

Instantly appealing – newly renovated 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

Referral Fee: $500

Steve Pohlit, Managing Partner
Ph 727-587-7871