- No speculative investments that are based on appreciation, land development, or require long holding periods before income is received.
- Superior equity position. Our total investment in a property is less than 60% of the fair market value.
- No leveraged debt. We are not leveraging these investments by taking out any bank loans.
- Insurance policy. Since the property is tied to the investment, we protect our investors with an insurance policy to cover our costs should the property be compromised.
- Above average return. Targeted returns to our investors of 8-14%
Arnold St, Redford MI. Our group also acquired the property next door as a package. Since we were able to act fast and close using cash funds we were able to purchase at a significant discount.
$160,000 purchase for two properties. Instead of renting the properties we sold by offering seller financing (land contracts) for $215,000. This allowed us to control the investment with the minimum amount of effort and create a reliable cash flow stream. Total IRR is approximately 12.75%. Once the properties are sold or refinanced by the borrowers the overall return increases to over 21% IRR.
Our group purchases non-performing loans from lenders. Our recent purchase was from a hard money lender that needed to liquidate their Cleveland Heights, Ohio loans. We took over completing the foreclosure process and rehabbed or sold as REO on MLS.
*6 loans purchased for $422,000 with a total remaining loan balance of $831,000. Overall return was approximately 19.30%.
Our special niche is performing land contract purchases. These loans were created from 2012-2015 from hedge funds that purchased thousands of properties during the Great Recession.
*27 loans are currently in our portfolio with total loan balance of $1,415,000. Total market value is $2,300,000 which represents a 61% LTV. Total IRR 14.84%