What do you think of this investment?

[Rodolphe Brun]

I need your input on this investment that I want to offer to private investors, let me know if you think this sounds fair.

Here is a little bit about what we do.
My company is Liberty Estates, LLC. We buy, sell, rent, and manage real estate property all over the United States, we have more than 50 years of real estate experience.
As you know, it has never been a better time to invest in real estate; opportunities are endless. We are experts on buying, remodeling and renting foreclosure properties. We are always seeking new investors, large or small, to expand our company.
Here is an example of an investment that we have available for you and/or your investors.

We guarantee you a yearly 10% net return on your money, and a profit at the time of resale.

This property has a market value of $72,500, it is rented for $8,400 a year, has a property tax of $1,100, insurance rate of $500 and a yearly management fee of $840.

Market Value $72,500
Gross rent income $8,400
Property Tax -$1,100
Hazard Insurance -$500
Management fee -$840
Total net rental income $5,960

Your participation in the investment can be as follows:
Your buying price will be $59,600.
Your participation can only be up to 70% of the total investment; we keep 30% of all our investments to ensure good management and control of the property.

To resume:

Market Value $72,500
Our sale price to you $59,600
Our 30% share $17,880
Your 70% share $41,720

As soon as you invest with us, you are making a profit. Since your share of the investment is 70% and the market value is $72,500, your capital just increased to $50,750.

You invest $41,720 and your capital increases to $50,750, which gives you an immediate profit of $9,030.

You will also receive a 10% net return on your initial investment every year.
$41,720*10%=$4,172 per year

In case the property increases only 3% a year and we resell the property in 5 years for $84,047.37,


You will then receive a capital of:
$84,047.37*70%= $58,833.16

your capital gain: $17,113.16
Total interest received over a 5 years period: $20,860
Your total investment profit: $37,973.16 or 91%return

All investments are guaranteed a 10% net return with property that have already been rehabbed and rented.