Benefits to Investors
Our registered investors have the opportunity to purchase properties and benefit from various real estate investment strategies, such as flipping and renting, which can generate lucrative returns.
Here are some reasons why investing in real estate can be a wise decision:
- Leverage: Leverage involves using borrowed funds to generate profits. For instance, a 10% down payment on a mortgage can enable you to realize 100% of the profits from any investment deal.
- Cash Flow: High-quality rental properties typically generate substantial cash flow, which can increase over time and outperform many other investment vehicles.
- Appreciation: Holding onto rental properties can lead to appreciation in property values, enabling you to reap significant profits upon sale.
- Other Tax Benefits: Various tax perks are available to real estate investors, including the ability to deduct property expenses and management costs, defer capital gains taxes through 1031 exchanges, and depreciate properties over 27.5 years for residential properties and 39 years for commercial properties. Additionally, a pass-through deduction allows you to deduct up to 20% of your qualifying business income on personal taxes. Opportunities zones also offer tax advantages, while rental property owners are exempt from FICA tax.
- Equity and Wealth: Investing in real estate can provide “Initial Equity,” and as you pay down the mortgage, you can build more equity and leverage to purchase more properties and build wealth.
Typical Investment Deal Review:
- Acquisition: $108k, Loan 90%: $97,200
- Repair Costs: $61k, Loan 100%: $61,000
- Soft Costs, including Assignment fee: $52,000
- Total Cost (DTC): $210,200
- Sale Price: $308,000
- Investor Total Investment: $52,000
- Private Lender Financed: $158,200
- Total Investor Profit: $97,800
HERE IS WHAT WE OFFER TO INVESTORS!
- We will find deals with a high estimated profit.
Make offers and sign property sale agreements. - Sell or transfer the agreement to you, for a small finder’s fee, based on your estimated profit.
- Refer to you as a Private Money Lender, if needed.
- Refer to you as a License Contractor, if needed.
- After Repairs, for a one-time fee of $287, we will help you find a buyer real fast.
