How It Works
Our company will lease your property from you with a long term lease
agreement.
- We will be your tenants!
- We will pay your mortgage, taxes
and insurance payments for you each month, on time.
- We will handle
all the property maintenance.
- We will deal with all the management issues.
We will lease your property for a minimum 3 year period.
We will sign a Purchase Option Agreement to buy your property at a price
above current market value
Our Purchase Option Agreement includes a pre-determined annual appreciation
rate for your property. This means the price we pay to purchase your
home increases from the first day we take possession of your property!
Here is an example:
Current Market Value of your Property: $150,000
Annual Appreciation Rate: 5%
Our Purchase Price Schedule for a 5 Year Option
|
Year |
Annual Appreciation |
Purchase Price |
1 |
$7,500.00 |
$157,500.00 |
2 |
$7,875.00 |
$165,375.00 |
3 |
$8,268.75 |
$173,643.75 |
4 |
$8,682.19 |
$182,325.94 |
5 |
$9,116.30 |
$191,442.23 |
Cash on Cash return is calculated using the amount of actual cash an
owner has invested in a property. If an owner were to purchase an investment
property with zero down and zero out of pocket at closing, then the cash on
cash return is infinite! Let's use a more conservative example:
| Owner's Purchase Price: |
$100,000 |
| Owner's Down Payment: |
$10,000 |
| Closing Costs: |
$2000 |
| Actual Cash Invested: |
$12,000 |
The Owner has $12000 invested in the Property. If the minimum rent received
is equal to the monthly Principle, Interest, Taxes and Insurance payment
(PITI) for the property, with a 5% annual appreciation rate, the owner's
Cash on Cash (COC) return after one year is 50%! This
does not even include the tax deductions the owner receives for owning
the property!
Below is a schedule of the Owner's Cash on Cash return over
a 5 year period:
Year |
Annual Appreciation |
Property Value |
Annual COC |
1 |
$5,000.00 |
$105,000.00 |
50% |
2 |
$5,250.00 |
$110,250.00 |
53% |
3 |
$5,512.50 |
$115,762.50 |
55% |
4 |
$5,788.13 |
$121,550.63 |
58% |
5 |
$6,077.53 |
$127,628.16 |
61% |
What You Need To Do:
If you currently own a property, we will evaluate your property's potential at no cost! If you do not own investment property, we have properties we sell that work well with this program, some with little to no money down! Once the agreement is signed, you can then:
-
Sit Back. Relax.
-
Enjoy the Benefits of Owning Investment Property
-
We'll do all the Rest
