If you're like most people, you want to invest in real estate only there are some obstacles you need to overcome, like
1. You've never done it before & you don't know how
2. You know how to do it but your credit sucks or you're tapped out from too many loans & can't buy any more.
3. You have done it before & you did well but didn't like the paperwork or dealing with deadbeat tenants that didn't pay on time
4. You tried it but you couldn't make it work
5. Your area is way too expensive to make it work and is heading for a correction
And my personal favorite
6. You tried it but now you're accused of mortgage fraud and are on America's Most Wanted List.
Well a CPA buddy of mine has hit upon a novel way of investing. He's been investing for 4 years and has a good handle on it. He originally started out doing this for his family. He identifies the property and gets the loan on it. The investors put up 25% of the money required for the down payment and he manages it from there on. In return for putting up the cash, they get a 70% stake in it. Yes, you heard it right, 70% of the profits!!!!
I told him he's crazy to give away more than 50% but that's the way he's been doing it and he likes it that way.
He typically identifies somewhat undervalued areas with potential for increase. He requires a down payment of 25% so there's no chance of the rent not covering the mortgage even after vacancy, repairs, etc. He deals with property management, deadbeat tenants and makes sure the mortgage gets paid. After all, its his credit on the line.
The properties are put in an LLC so there's asset protection and he does the paperwork and sends you a k-1 at the end of the end which you give your accountant and you're done with all the paperwork!
He currently has a deal in Dallas and needs to raise about $156,000 to buy 5 houses. He has an in with the builder so he's getting a great deal on them. They are 1800 sq ft 4/2.5/2 brand new homes for $125,000 each. [Actually they are newer than new since they're pre-construction].
I really like the fact that the project is in Dallas. During the last oil boom, Dallas house prices saw tremendous growth even as the economy faltered on the whole. I forsee the same thing happening this time around. Some parts of Dallas have already gone up over 10% in the past year. Quite a jump from being the worst state in terms of appreciation in just 2 short years!
Another good aspect of this deal is that the tenants will be Section 8 so the rent will come directly from the Government. [Atleast the rent won't be late!] The vacancy should be LESS THAN 4 weeks since they're being built to Section 8 specifications and he'll be setting it up during the building of the homes. The downside is section 8 tenants normally trash the place, but each home comes with a $5,000 in reserves included in the $125k price. Damn, he thought of everything!
If any of you are interested in partnering let me know. I'm trying to help him raise the money.
This really a phenomenal deal. The only issue is that the window for opportunity is only 30 days [Must have the money in by 1st week of December]. Email me quickly before he comes to his senses and reduces the investors' stake from 70% to the 50% that it should be. Do it NOW, this will not last long! Where else can you get a CPA with Big 4 Accounting experience to do your investing, put up his credit, offer you asset protection AND give you 70% of the profits??
Contact me at EmptySpacesInc@gmail.com
No comments:
Post a Comment