All Forum Posts by: Rodolphe Brun

Thanks for the inputs guys,

The NOI is $5,960.
We sell the property for a price of $59,600 when the actual market value is $72,500 (this is appraisal value and what a broker would list the home in today's market).
Market value is different than purchase price because we want our investors to get a good deal when they buy.
Also, each LLC that we create owns one, or several properties, free and clear of any lien. Why would we go bankrupt on a company that has more assets than debt? We have been doing this for many years, we are free of mortgage and all of our investors are happy with what we are doing. If you wish, you may contact them and ask all the questions you want. We have nothing to hide.
Also, remember that all the properties that we offer to our investors have already been remodeled and are rented with a good tenant in place.
Also, you can choose between getting a monthly or yearly payment.
If you do not feel comfortable with creating an LLC, we have no problem going with a tenant in common title. Most of our investors like to group with friends or family members, and that is why we like the LLC better, because if one of the partners needs to get his money back and wants to sell his shares, we do not need to sell the property.

1) We are not planning on selling any time soon, we are keeping the properties until the markets recovers even if it takes 20 years, we make sure than our properties have a good rental income.
2) Our company is backing up the return. Even if the property doesn't rent, we will pay you the 10% return.
3) We are setting up an LLC for each investment, where the investors can own up to 70% of the shares.
Our company always keeps 30%.
The title will be held by the LLC, we do it this way so if an investor wants to get his money back, we can buy the shares back from him without having to sell the property.
4) Most of the properties are located in Pittsburg PA, it takes us an average of 3 weeks to evict a bad payer. Yes, we garantee the return no matter what. This is how we do it. First we manage all of our properties ourselves, and we set our rent under the current market, that enables us to get a larger choice of tenants and we can then be more selective, also we own a lot of properties, so if one doesn't rent we have income to back it up.
5) All of our properties are insured so in an extraordinary case like yours, we would be covered.

Thanks for your input, I will make sure to cover all of that in our presentation.
Please ask more questions if you have any.

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.

Hello Caleb,

I plan on going to Hawaii with my family in february. Which island should I stay in and has the most thing to look at?

3 years ago, this wasn't a problem. Foreigners could buy anything as long as they put down 20% down.
Now with the credit crunch, it's even hard to get a loan when you have 30% and you are a citizen.
You can try this lender "World Savings Bank". I believed they merged with Wachovia. They used to do loan to foreign investors at a great rate and didn't ask for green card.

Hello Frank,

Welcome to BP.
I will say, location, location, location.
Your investment can be great or can be a flop.
For rental you will find out that properties have a greater cash flow in the "not so good area", but with that come trouble, it is harder to find good tenant, and harder to get paid, so if you invest in this area you will have to be constantly on the top of it.
If you invest in a nicer neighborhood, it gets easier, however cash flow is not has good and sometimes it is hard to break even.
But for a resale point of view and for equity in the long term it is probably the best.
I think I will stay away from multiple unit. Single properties are probably the cheapest and safest investment right now, price are so low that it's hard to go wrong.
But then again it's all about your area.
Here in Vegas, despite the economy the market is crazy. people are overbidding on all REO properties.
If Chicago is like here, buy a few properties, cash if you can, rent them and wait a couple of years.

I agree, most of my applicants have no job, bad credit, and they ask if they can pay the deposit over a several month period.

Wine rep sells wines James.

Welcome Lisa,

You and your LLC are two differents entity.
So there are no problem renting from your LLc. As long as the title of the home is under the LLC name as well.
However Mark is right, you are going to pay tax on money you already paid tax on.