The Opportunity

The economic climate in the United States has led to an unprecedented number of bank owned homes. The sheer numbers that are being handed back to the lenders represents investments that need to be re-sold in order the retain their own liquidity.

This has meant that new opportunities have opened up for investors and especially those with the right connections.

The investment is based on a well structured program that is designed to provide passive investment with built-in equity, positive cash flow and the very important exit strategy. Ethically, the program focuses on helping working class America families get back into a home that they can afford to own and ultimately refuel the property market.

The property opportunities are located in the Mid West and Carolina in the US with solid focus on areas where property prices are low in proportion to rental rates. As the investor all properties are priced at $29,000.

The following are all guaranteed:

• Guaranteed minimum value of $45,000
• Guaranteed liveable and saleable

In this situation, you the investor become the bank and with that you inherit the benefits of not having the responsibility of a landlord.

• 10% interest over 30 years, regardless of market conditions
• Reduced monthly overheads (owner occupant pays taxes and insurance)
• Owner occupant has pride of ownership and is responsible for maintenance

Clearly this climate denotes serious investment potential for financiers that are able to strategically manoeuvre around this economy.

Payment Structure

Exit Strategies

From here there are 4 exit strategies for investor.

1. At $29,000 there is equity already in the home. Investor can try and sell outright in open market. Either sell to another investor for more than $29k, but less than market value. (this is not really promoted or discussed as an option, but it is a possibility if marketed in those circles.) Or, the investor, with the help of the national management company, can sell home at market value to someone who can pay cash or who can obtain their own financing.


2. The investor can sell the property at market value and hold the note for their buyer. That is, investor is the bank. For example, a note of $59,500 at 10% interest requires roughly a $520 payment for principal and interest. The management company collects these payments, escrows the taxes and insurance for a 10% fee and sends the remaining $468 to the investors bank account.
   
   12 payments of $468 received on $29000 equals roughly 19% ROI after 12 months.


3. Investor can hold note as in exit II until note seasons (12 -18 months) and buyer can can obtain refinancing with help from management company’s credit counselors and traditional financing outlets. New lender pays off balance of $59,500 note which returns initial $29,000 investment plus more than $28000 profit. Combine that with the 12 months P and I collected and the ROI after 12 months is 117%.


4. Investor can sell mortgage note. Up to 35% discount and after 3% management fee, nets roughly $37,515, plus 12 months P and I collected yields roughly 42% ROI.