Category Archives: Turnkey Homes

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
Email

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

Contact:
Steve Pohlit, Managing Partner
Ph 727-587-7871
Email

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.

Turnkey Income Producing Homes – Your Money Is Secured

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.

FAQ’s

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
Email
Phone: 727-587-7871

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.

 

 

 

 

 

 

How Buyers Fund Turnkey Investment Homes

Turnkey Investment HomesA turnkey residential property is where a distressed home is purchased, renovated then leased to a tenant. There is a favorable net cash flow for the buyer and the buyer literally has nothing to do but collect the payments and pay bills like insurance and property taxes. The renting and collection of rent checks as well as any needed property maintenance is handled by a property manager.

There Three Primary Sources For Funds To Purchase and Renovate A Home:

1. Personal funds of the Real Estate Investment Firm (Project Partner)
2. Money from a funding partner or private money lender
3. Buyer funding – this means the buyer of renovated home with a paying tenant.

The following are  the steps for a successful Buyer Funding solution. An escrow agent is used at all times during this process. Normally the escrow agent is the title company for the project partner (firm buying and renovating the distressed home).

1. A qualified buyer (buyer who has proof of fund to purchase a turnkey property) sends a deposit to reserve the next available property to the escrow agent.
2. When the Project Partner finds a home that meets the defined profit and cash flow criteria, the buyer wires the full amount of the final selling price to the escrow agent.
3. The escrow agent pays the seller of the distressed property the agreed upon price and titles the property in the name of the Project Partner’s Corporation.
4. The title company files a mortgage on behalf of the buyer for the full amount of the final selling price which is the same as the amount wired to escrow agent plus the initial deposit.
5. The escrow agent releases the agreed upon funds for the renovation to the corporate account of the Project Partner. Note there are at least two people in the Project Partner’s control system who verify renovation contract amounts, controls over paying contractors and accounting for all money.
6. When the renovations are complete and a tenant is secured for the property, the title company closes the sale for the final buyer at which point the title is transferred from the Project Partner (real estate investment firm) to the buyer.

The paperwork trail, finding the property, controlling renovation, property management system, finding buyers is outside the scope of this article.

Steve Pohlit, Managing Partner Real Estate Investment Firm, Business and Real Estate Investment Coach

Steve Pohlit, Managing Partner Real Estate Investment Firm, Business and Real Estate Investment Coach

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