We provide opportunities for experienced investors to acquire good cash flowing rental properties with built-in non-recourse instant financing.
|Seller Option Fee||1.67%||+$3,000|
|Co-operating Broker Fee||1.75%||+$3,140|
|Fair Market Value||$200,000|
|Annual Interest Rate||6.1814%|
|Monthly Debt Constant||0.6438%|
|Annual Debt Constant||7.7252%|
|Monthly Gross Rent||$1,665|
|Monthly Principal and Interest||$991|
|Gross Scheduled Income (GSI)||$19,980|
|Vacancy and Credit Loss||8.00%||–$1,600|
|Actual Rental Income (ARI)||$18,380|
|Effective Gross Income (EGI)||$18,380|
|Gross Operating Expense (GOE)||17.97%||–$3,300|
|Net Operating Income (NOI)||82.03%||$15,080|
|Annual Debt Service (ADS)||78.82%||–$11,886|
|Net Cash Flow (NCF)||21.18%||$3,194|
|Monthly Cash Flow||$264|
|Capitalization Rate (CAP)||8.4112%|
|Cash on Cash Return (CCR)||12.5629%|
|Debt Coverage Ratio (DCR)||1.2687|
This hypothetical example is for acquiring a rental property subject to the existing debt with about 14.18% investment. We will assign the purchase contracts to you for an assignment fee. The estimated closing costs are for legal fees, escrow fees, and prorations. The high leverage creates very strong yield. The instant financing is non-recourse in the form of seller financing wrap-around note.
The Cash on Cash Return (CCR) is 12.5629%. We require the Debt Coverage Ratio (DCR) 1.20 or higher to tolerate recessionary pressure on income or expense.
Every deal is unique. Every property is “move in” ready or requires just a little bit of light cosmetic cleaning or minor repairs. These properties are not “fixer uppers”. These are nice houses in nice areas.
You will know before committing your funds how a deal is expected to perform. These deals are usually sold within hours of posting to our best buyers list. This means that the price and terms are non-negotiable. We’ve done our best to negotiate a great deal for you.
The assignment fee is what you pay to us to assign the contracts to you. The closing costs are the usual and customary fees for legal preparation, escrow prorations for utilities, taxes and insurance.
The contracts are an Option Contract with/or a Purchase and Sale Agreement (PSA). The assignment fee is non-negotiable and non-refundable. The Option Contract makes us a principal party in the transaction. The PSA is signed and notarized only by the seller. When you sign the assignment agreement for the Option Contract, then you can exercise the Option Contract, then sign the PSA as the buyer, and close the transaction.
In some cases, there will be only the PSA without an Option Contract, and we will be the buyer on that PSA contract. The assignment agreement will assign our PSA to you for an assignment fee.
In either case, in addition to our assignment fee, you are required to pay all closing costs and 3rd party fees. You will have an itemized good faith estimate closing statement before you commit to the assignment.
The renovation costs are the good faith estimate of a “scope of work” written by a licensed general contractor when there are visibly apparent inspection issues.
These deals go very fast, usually within hours of posting. Let’s get started! Click here.
PS – Just a quick note: I am not a licensed real estate broker. I am not soliciting you to list your property or to represent you. I am acting as an investor and only represent myself in any transaction. Please read my Disclosure statement by clicking here.