We are putting together a program that will allow Buy & Hold Investors to find properties they want to make rental income with and controlling interest in them without having to having to get a bank loan to purchase them.
What do you think of this program?
Let's say we purchase a property and Lease Option it back to you for 3 years. The option price is set today, so you gain the appreciation for the next 3 years. There are NO rent credits.
Requirements:
Location = Any, it doesn't matter to us.
Annual Cap Rate = 10% or higher
Annual Cash-on-Cash Return = 15% or higher
LTV = 65% or Less
Proof of Funds = 10% Option Fee, Repair Cost & 6 months of Lease Payments
**ONLY NON-Owner Occupied Properties**
Fees:
$2k - Loan origination Fee (included in Loan)
$2k - Processing Fee (included in Loan)
10% - Option fee (Paid at signing of Lease Option)
5% - Increase in Option Sales Price from the Original Purchase Price
2 Months Rent - Security Deposit (Paid at signing of Lease Option)
What we need to evaluate a deal:
Property Address Minimum of 5 exterior photos & 5 interior photos Purchase Price Market Rental Rate CMA from the MLS and from a Licensed Realtor. CMA is to include the Retail Comps and Rental Comps Proof of the repairs which needs to be in writing from a licensed and insured contractor. Must include cost of materials and labor, plus the about of time to do the work.
