Prices are down, Rents are up, Rates are low.  This is the perfect storm for investors.  Now is the time to buy.  We have a small window of availability to really capitalize.  Coupled with our creative programs, you can really make hay while the sun shines.  Rates are going to drop 50 to 100 basis points (1/2% to 1%) today.  This translates into great cash flow potential for investors.

If you are interested in participating in a Joint Venture, Mass Consumption, LLC can partner with you.  You can use our line of credit to fund projects that we send out.  There are a wide variety of structures available.  Utilizing this partnership can be a tremendous opportunity.  You may be able to purchase real estate with very little cash out of pocket.

Our typical structure works as follows, on a case by case basis:

Procurring Partner (Mass Consumption LLC) provides funding for the project.

Managing Partner (Investor) will ultimately refinance the project and take advantage of the benefits of owning real estate.  Appreciation, Cash Flow, Cash Out and Tax Benefits.

• 90% of the Purchas Price will be funded by First Choice Bank, utilizing our Line of Credit.

• A Procurring Partner (Mass Consumption LLC for example) will provide you with funds for down payments (and in certain circumstances, rehab funds).

• As a Managing Partner, it will be your responsibility to manage the project and refinance the home in your own name (or legal entity) within 90 days.

• As a Managing Partner, you will have full ownership rights of the property upon refinance of the orginal partnership.

• Initial costs are limited to the Series LLC (typically $5,900 - $8,900).  You can put the Series LLC costs on a credit card if you’d like.

• Your 10% down payment will be provided for you at close.

• You can either put the rehab costs on a credit card or pay cash (in special circumstances the Procurring Partner will fund the rehab).

• Partnerships are limited to our projects.

• You will need a good credit score (680+) and solid income to qualify.  You will need to be approved with one of our lenders to refinance.

• If you have not refinanced the project within 90 days, you will make 1 interest payment and be allowed another 90 days.

• If you have not refinanced the project within 180 days, your interest in the property will be disolved.

The purpose of these Joint Ventures is to allow investors to buy real estate with as little cash out of pocket as possible.  The costs for this venture vary by project, but typically range from $5,000 - $10,000.

Investors are always struggling with finding banks who understand foreclosure investing.  My investors tend to have great success with Banks who understand my process.  The reason?  I spend countless hours meeting with banks and appraisers to explain our program.  After nearly 8 years in the business our track record speaks volumes.  At this point, we have banks competing for our business.  Currently we have several banks that will provide my investors a 90% home equity loan on investment property.  This program is VERY competitive in a VERY conservative market.  It’s important to understand our process and experience when working with banks and appraisers.  No matter how much success we display, appraisers tend to be conservative in order to protect themselves.  My front end research regarding comparables should more than justify our numbers.  In any market, good or bad, we do our homework on the front end to justify our values.  Every house we send out, will come with comparables homes that have sold recently.  Many appraisers will need to see these comps and consider them when preparing their appraisal.  Many appraisers will mistakenly provide comparables that were also sold in foreclosure.  This is an extremely common and a grossly inaccurate practice.  Appraisers need to consider the rehab that was done to the property.  They also MUST look at recent, sold comparables.  When these 2 things are considered, our process is very accurately displayed through the appraisal.  If you ever have an issue with an appraisal, call us!  We will fight on your behalf to defend our accurate values and assist you with the explanation of our values to the appraiser.  We can also refer you to appraisers who have experience with foreclosures.  If a retail (often conservative and inexperienced wtih foreclosure) appraiser is involved, the appraisal will inevitably be inaccurate.  I highly recommend using an appraiser with foreclosure experience.  Call us for the name and number anytime you are working to cash out refinance a property or obtain a home equity line.