The investor becomes the owner of the property, usually a single family house, and in a short period of time a property sells to the final buyers on the basis of rent to own option, with a guaranteed profit, over the next 3 years. For investors, we provide a complete service, from finding investment property to ensure the final buyer, including all related contractual documentation and transfer of property to the final buyer.
Investment houses can be purchased from $35,000 per property, including all closing costs, property taxes, insurance and our service fee. The purpose of this transaction is that the investor buys the property at a significantly lower price than the current market value, which for a) meet its investment strategy and b) has a large space in the negotiations on subsequent sales. That’s a great EXIT strategy! Our company provides the final buyers from our long-established database. The final buyer pays to investor monthly installments which creates immediate cash flow and have a locked purchase price which a final buyer pays within 3 years.
The whole process is based on the specific needs of involved parties:
- Seller needs cash = the investor buys a property from
- The investor buys the property for the purpose of resale, not his/her own housing needs. He/she buys it at a below market value price.
- The final buyer buys the property from the investor because he/she is unable to get a mortgage at the time of purchase. Our company is the overall coordinator of the transaction. In this position, we got many years of experience in the real estate market in the U.S., where we have made over 1,500 similar transactions since 2003 and created a specific know-how in this field.
- At the same time, our company cooperates with banking institutions, which they are put the final buyer into their program for obtaining mortgages in over several years (usually up to 3 years depends on the buyer’s credit history).
Example already made transaction:
Location = Indianapolis, IN
The purchase price = $35,000 (total investment)
Market price - $58,000
Selling price within 3 years = $58,000 within 12 months; $63,000 within 24 months and $68,000 within 36 months
Monthly payment = $600/month for first 12 months; $625/month between the 13th and 24th months and $650/month between 25th and 36th months
3-year cash flow = $22,500 (worst scenario)
Return (ROI) = $33,000 (if buyer make purchase in 3 years)
Return (total) - $68,000 (purchase price in 3 years)
In return (%) - 94.29%