OUR GOALS !
I have been asked why I would want to sell any of the investment properties I purchase if in fact they are the great opportunity that I say they are. The answer is very simple: Groceries.
The amount of net rental income I can expect from the number of rental homes I can afford to purchase and hold long term is simply not enough to support my lifestyle and financial goals. I would love to keep every home that I buy, renovate and rent but at the end of the day such a strategy may leave me wealthy on paper but lacking cash to use for groceries! My goal is to build my own long-term portfolio of rental properties while also working with other investors to help them do the same. This way I can generate the immediate returns I require, build long-term client relationships and generate longer-term wealth.
I believe that there are plenty of individuals out there who can recognize the opportunities I have outlined in today’s real estate market and who have the liquid assets to take part. But understanding that an opportunity exists and desiring to commit financial resources to such an opportunity is not the same thing as being able to take action. The simple reality is that this is not a passive investment. You cannot call your stockbroker up and say “Buy me a bunch of foreclosed homes, get them renovated and then rent them out for me”. This is an opportunity that demands TIME and EFFORT to be expended… and a great deal of both.
Most professional people are extremely busy. Our lifestyles place demands on our time that are often all but impossible to manage. The very nature of our careers that provide the income and assets that make investing in real estate possible also strip away the time required to actively participate. Trying to free up enough time to view several dozen houses, rapidly and aggressively pursue offers and contracts, manage the renovation process and then find good tenants is just not possible. This results in people not being able to invest despite having both the assets and desire.
There are also economies of scale that make the costs of our model very modest to the investor. Yes, we are looking to turn a good profit on every home we sell. But that does not mean the investors who purchase homes from us will end up paying substantially more than they would have invested had they managed the entire process themselves. We maintain an ongoing crew of renovation professionals and are thus able to rapidly and efficiently have the homes properly restored. This ability yields significant costs savings. I am also constantly engaged in viewing homes and making offers and in general working to acquire high quality inventory that conforms to our business model. This means I have to purchase the homes at values that enable them to be sold when renovated and rented at end prices that still represent excellent opportunities. The only way this is accomplished is by aggressively pursuing homes on an ongoing basis. I believe it would be very difficult for an investor to achieve the same end result through their own individual efforts unless they are able to pursue it as a full time activity.
Our goal is to provide these real estate investments as a turnkey proposition. We research the locations; we view and inspect the homes. We negotiate a purchase contract and work to get the home closed. We manage and conduct the entire renovation process. We place a solid tenant in the home paying a fair market rent. We fund this entire process from our own capital. Then we sell the home to an investor at a price leaving ample room for longer-term appreciation based on normal market valuations. We earn a good profit, the buyer receives a solid long-term investment that generates excellent immediate returns and the tenant has a very nice home to live in at a fair rental amount. Everyone wins.
We are not focusing on selling homes as primary residences at this time. We are not real estate brokers and we do not represent homes for sale that we do not own. Our focus is very narrow and our goal is to achieve our targeted objectives through this well-defined strategy.