IRA Real Estate, LLC The Real Estate Investment Specialists! SPECIAL REPORT. Hassle Free Turnkey Investing. Passive Investing for Fun and Profit

Transcription

1 IRA Real Estate, LLC The Real Estate Investment Specialists! SPECIAL REPORT Hassle Free Turnkey Investing Passive Investing for Fun and Profit

2 IRA Real Estate, LLC The Real Estate Investment Specialists!

3 Investing in High Yield Residential Properties Program IRA Real Estate, LLC has developed Investing in High Yield Residential Properties Program to help our clients build wealth for the present and the long term by strategic real estate investments. One size does not fit all when it comes to real estate so we ve developed programs to suit the individual needs of our various investor clients. We are uniquely qualified and positioned as licensed real estate professionals and successful investors ourselves to help our clients succeed. This Special Report discusses Hassle Free Turn Key Investing. If you have retirement funds in an IRA or 401K or if you just have available cash earning anemic returns, please consider our program closely and read this entire report. 3

4 Hassle Free Turn Key Investing Introduction Investing in real estate successfully is not as easy as many people make it seem on television and on the Internet. Successful long-term real estate investing involves attitude, planning, key licensed professionals, many different skill sets and ready resources. Lack of any one of those ingredients has prevented many people from making money in real estate. IRA s Hassle Free Turn Key Investing is the solution to that problem. What makes our company unique is that we are licensed real estate agents, Realtors, and former successful investors. We say former investors because we have chosen to help others invest in real estate using our skills and resources. That means we don t compete with our clients. We ve modeled our business after management professionals who work with stocks, bonds, and in related financial money markets. Only, we do it in real estate, and real estate, only. That makes us special and our services come at a premium. Grow Wealth Using Seasoned, Successful, and Superior Real Estate Professionals 4

5 Introduction We are LICENSED REAL ESTATE PROFESSIONALS trained to work with our clients in real estate related matters. IRA s Hassle Free Turn Key Investing weds a client s financial resources with our experience and skills so that everyone makes money, again and again! Our clients financial resources can come in many forms. Clients can use their retirement funds, IRA/401Ks to invest in real estate (See our Special Report on Private Money Lending). Clients can also use their ready cash or other savings as they choose. The point is that they provide the money while we provide the professional skills and resources to help that money grow securely, confidently and with high yields. 5

6 The Purpose of this Report The current real estate market has some challenges, but it also has many opportunities. The purpose of this report is to offer investors a new and dynamic way to maximize returns while minimizing risk and remain hands-off in the process. A seasoned team of professionals guiding you to strategic real estate investments is the key to your success. This report will answer many of your questions about Passive Investing in real estate and show you how you can begin immediately to take control of your financial future. 6

7 In this report, we will discuss key points of interest like: What is Hassle Free Turn Key Investing? Option I Investing Using IRA/401k IRA Real Estate, Vision Mission Philosophy Passive Investing Explained Successful Deals We ve Done Option II Investing Using Ready Financial Funds How much hands-on involvement will I have to have with the property? How do I get started?. About the author When you finish reading about Hassle Free Turn Key Investing, for you, in terms of safety, control, and yield, you ll probably want to know more. If so, give us a call at (301) , and we ll tell you how you can get more information or get started right away! 7

8 Vision Helping people take control of their financial futures as strategic real estate investors Mission To translate Americans real estate investment goals into reality by using licensed professionals to provide innovative and service based real estate programs Philosophy Real estate investing is a business; real estate investing is serious business! The rewards of success are great, but the consequences of failure can be catastrophic. In order to succeed the layperson needs to work with licensed professionals. Your stockbroker, accountant, and certified financial planner are all licensed professionals that help you manage and acquire wealth. Real estate investors should have the same qualified, licensed, and experienced professionals working for them. IRA Real Estate, LLC is dedicated to providing the average person the services, resources, professional guidance and support they must have to acquire wealth by investing in real estate. 8

9 To be successful in real estate, you must always and consistently put your client s best interests first. When you do, your personal needs will be realized beyond your greatest expectations. - ANTHONY HITT 9

10 Here Are a Few Examples of Successful Real Estate Deals We ve Done 28th Street SE, WDC was a 2-unit apartment building. One apartment has two bedrooms and one bath. The other apartment has one bedroom and one bath. The owners purchased the property for cash flow in retirement. Once renovated, they took significant cash out via a refinance for other investments. Here are the numbers. Purchase Price: $60,000 Renovation Costs: $42,300 Gross Monthly Rents: $1950 Monthly Operating Expenses: $400 Monthly Mortgage PITI: $811 Net Operating Income: $740 13th Street NW, WDC was a large single-family row house in a much sought after area in NW, DC. The owners died and left the house to out of state heirs. The house was vacant, in disrepair, and the heirs wanted to sell quickly. This was a buy, clean up, and resell investment deal. The buyer held the property for approximately four months. Here are their numbers. Purchase Price: $490,000 Clean-Up Costs: $1,000 (approx) Holding Costs: $7,000 Resell Price: $655,000 Gross Profit: $157,000 Time Frame: Approx 4 months 10

11 19th Place SE, WDC was a 49-Unit Housing complex with a mixture of one, two, and three bedroom apartments. The building was in receivership and the title owners needed to sell quickly. Rents had not been collected for about a year and tenant complaints and subsequent landlord fines were piling up at the DC Housing Authority. The properties were purchased, rents stabilized, and resold in approximately 7 months. Here are the numbers. Purchase Price: $475,000 Renovation Costs: $20,000 Holding Costs: $11,000 Resell Price: $930,000 Gross Profit: $424,000 Time Frame: Approx 7 months Devonshire Drive, Oxon Hill, MD was a single-family detached house. It originally had three bedrooms and 1.5 baths. The owners had moved and tried to rent the house for income, but due to severe personal illness their plan failed. They did a short-sale and sold to our client an investor. He renovated the house, made it four bedrooms and 2 baths. Total time was approximately 6 months. Here are the numbers. Purchase Price: $55,000 Renovation Costs: $40,000 Holding Costs: $8,000 Resell Price: $170,000 Gross Profit: $67,000 Time Frame: Approx 6 months 11

12 Here Are a Few Examples of Successful Real Estate Deals We ve Done Monterey Circle, Fort Washington, MD was a single-family detached house in a country club community outside of DC. This executive style house was approximately 6500 square feet. It was a short-sale and had severe basement mold and water damage. Here are the numbers. Purchase Price: $401,000 (Cash Purchase) Renovation Costs: $121,000 Holding Costs: $3,000 (Minimal Costs due to Cash Purchase) Resell Price: $789,000 Gross Profit: $264,000 Time Frame: Approx 5 months Perry Place NW, WDC, was a row house that needed complete renovation. It was a probate sale (our specialty) and the house had been in the family for forty years. During renovation an additional bath and off street parking were added. Here are the numbers. Purchase Price: $280,000 (Cash Purchase) Renovation Costs: $110,000 Holding Costs: $3,000 (Minimal Costs due to Cash Purchase) Resell Price: $540,000 Gross Profit: $147,000 Time Frame: 6 Months 12

13 13th Street NW, WDC, was a row house in one of the most sought after areas in the Nation s Capitol the U Street Corridor. It was a probate sale, the house being left to a single heir. The house required complete renovation, but because of its location we had interested buyers from as far away as France! Here are the numbers. Purch ase Price: $409,900 (Cash Purchase) Renovation Costs: $123,000 Holding Costs: $5,0 00 (Minimal Costs due to Cash Purchase) Resell Price: $880,000 Seller Subsidy: $21,000 Gross Profit: $321,000 Time Frame: 10 Months Every deal we ve described here is a matter of public record and can be verified independently. It must be understood that Washington, DC our Nations Capitol has a unique and diverse real estate market. The DC Metro market comprises Northern Virginia, some Beltway Maryland suburbs and of course DC herself and because of this diversity there are tremendous opportunities and benefits for real estate investors. Now that you ve seen what we have done, let s look at what you need to do to get started. 13

14 Risk comes from not knowing what you re doing. - WARREN BUFFETT 14

15 Option I (Self-Directed IRA/401K) If the option of using tax-deferred funds to purchase property sounds appealing, you ll need to locate an independent IRA custodian that allows real estate investments and work with that company to set up or rollover your IRA account. Most banks and brokerage companies the most common IRA account options limit your choices to certificates of deposit, stocks, mutual funds, annuities, and similar financial instruments. But Section 408 of the Internal Revenue Code permits individuals to purchase land, commercial property, condominiums, residential property, trust deeds, or real estate contracts with funds held in many common forms of IRAs, including a traditional IRA, a Roth IRA, and a Simplified Employee Pension plan, or SEP-IRA. To find a custodian that specializes in real estate, search under terms such as real estate IRA or self-directed IRA on the Internet. This latter term was coined by the financial industry in the 1980s to distinguish the self-directed IRA from other IRAs that focus on stocks and bonds. The IRA account holder can t serve as the custodian of his or her own account. However, it s important to select LET US MAKE IT ABSOLUTELY CLEAR. IRA REAL ESTATE, LLC AT NO TIME WILL HOLD OUR CLIENTS FUNDS! CLIENT S FUNDS ARE AT ALL TIMES HELD BY THE CLIENT OR THE CUSTODIAN OF THEIR CHOOSHING! Step #1 a custodian knowledgeable about the types of investment you re interested in, because the custodian holds title to the real estate. Do your homework, and understand what you re getting into. Fees can vary widely among custodians, as can the flexibility of the services they provide for account holders. At IRA Real Estate, LLC we have worked with several custodians and will gladly share our experience with you regarding their services. Once the client has chosen their custodian and placed funds with them, they can now self-direct those funds into real estate. That is where most people get stuck, but not anymore. Here we will lay out step by step the process of our Hassle Free Turn Key Investing. 15

16 Option I Step #2 Complete Your Strategic Real Estate Investment Plan A Strategic Real Estate Investment Plan is not as comprehensive as a financial management plan done by CPA s and financial planners for stocks and mutual funds, because it s done solely for real estate investments. Understand we are not licensed financial management professionals and do not give financial planning advice. We are licensed real estate professionals, working for our clients in their real estate matters. However, we will gladly work along with your other financial professionals. Nonetheless, the plan must be done using professionals experienced in the many different facets of real estate investments. Real estate investments come in a variety of colors, styles, and sizes. One size does not fit all. You ve got to know what works for you and what doesn t. But, you re new, and you don t have a clue as to what to do first. The professionals at IRA Real Estate do, and that s why you re here! At our initial working meeting, we ask the relevant questions. You explain to us what your goals are. You tell us what resources and skills you are working with. We use our experience and knowledge of real estate investments to help you firm up your plan and create a strategy that fits your disposition and timeframe. There s no hit or miss or spending a lot of money and time trying to find what works for you. You ve told us what you want now it s time for us to start working. You become a Passive Investor, letting your money work for you. 16

17 Get Started The IRA Real Estate, LLC team handles every aspect of the transaction for our clients. Client service is our #1 priority and handling all of the heavy lifting for our clients is where we start. Passive investing means we take the guesswork and the long process of vetting your team out of the equation. Removing the barriers for our investors and allowing them to take advantage of one of the premier property markets in the country! The DC Metro area is one of the top two real estate markets in the entire country. To list the superlatives the DC Metro area offers in job creation, growth projections, government hiring, and various business and educational sectors is beyond the scope of this ebook. Let s just say it s the Capitol of the Free World! It has the IT FACTOR in real estate! If we are agreed, let s apply our time better to understanding the passive investment process. Step #3 17

18 Passive Investment Process Investment Property Acquisition Investment Property Renovation Professional Property Management Client Relations Investment Property Acquisition Analyze strong buy & hold neighborhoods Locate property Prepare renovation analysis Acquire property ROI and cash flow analysis Investment Property Renovation Budget prepared and renovation scheduled Project managed for maximum efficiency Average length of renovation time 3-6 months Average cost of renovation project $40,000-$123,000 Full scope of work prepared upon completion Full accounting with before and after pictures Professional Property Management 24/7 Online Access for all Clients Direct Deposit Clients Rents Auto draft for Tenants Rental Collection and Disbursement Tenant Applications screened Client Relations Client Relations department calls weekly for first month after purchase Client Relations call monthly for all investors after the first 4 weeks 18

19 Now, one thing I tell everyone is learn about real estate. Repeat after me: real estate provides the highest returns, the greatest values and the least risk. - ARMSTRONG WILLIAMS 19

20 Option II If you are an individual investor, represent a hedge fund, foreign investment group, or an institution, our investing process is even simpler. It is a twostep process and one you can start immediately. Step #2 Step #1 If you are a small or large investor, you must start out with a plan. We make certain that our clients understand that real estate investing is a business. Every successful business you can think of has a business plan. You are a businessperson when you invest in real estate. So, small or large, new investor or seasoned pro, we start with your written plan. Get Started The only difference between our process and services for clients that use their IRAs/401Ks and those that don t utilize them is the absence of a Custodian that the funds would be placed with. In other words if you have ready cash or access to funds, you DO NOT have to set up an IRA/401K to invest! That seems obvious, but we needed to make it 100% clear. The Passive Investment Process is the same as in the previous chart. Simply put, you provide the financial wherewithal and we do the rest. 20

21 I ve heard people say real estate investing is glamourous and sexy. I ll tell you this. It s been very good to me! - N. Xavier Arnold 21

22 I m Ready To Start! What Do I Do Now? 22

23 IRA Real Estate, LLC holds regular online webinars for individuals who want to learn more about Hassle Free Turn Key Investing These informative Internet webinars explain: What a Strategic Real Estate Investing Plan is and does What Services are Provided How we Find, Analyze, and Structure Great Deals How Investors Can Maximize Their Returns So, sign up for our FREE Webinar today and get on track to make profitable real estate investments and secure your financial future. Also feel free to call our office, , and speak to one of our experienced and licensed real estate professionals. The next Hassle Free Turn Key Investing webinar is coming up soon. For more information or to register, just fill out the attached registration form at our website. 23

24 About the Author Nathaniel brings over twentyfive years experience to the firm as a real estate broker in residential and commercial sales. In that span of time he managed offices with over 80 agents. He also was an active licensed real estate appraiser for twentytwo years, having trained nearly twenty appraisers and being admitted as an expert witness in court regarding appraisal matters. In his daily duties as the principle broker of the firm he was directly and indirectly involved in approximately ten thousand transactions. Many of these transactions were for and on behalf of investors who were seeking a return on their investment funds. Mr. Arnold assisted in locating, analyzing, negotiating, acquiring financing, managing contractors, renovation, and the sale of properties for his clients. His success in this area of investment real estate is directly tied to his extensive experience as a licensed broker and appraiser. His ability to train and manage a large corps of real estate agents also contributed to his success. In addition Mr. Arnold has been a successful investor in his own right. Wholesaling, probate, REO, and land lording are areas in which he worked. As the author of four published books, the latest one entitled, The Best Real Estate Investing Method Ever! He is able to explain what he does and reach a broader market through his training. This is evidenced by good attendance at the seminars he routinely conducts for the general investing public. All this highlights his skills and competence in the investment arena and will solidify his position with buyers, sellers, and investors in real estate. Currently as the principle broker of IRA Real Estate, LLC, Mr. Arnold focuses solely on investment property, which makes his firm unique in the Metro DC area. He has also developed a probate property system that allows his firm to capture properties not currently on the market and inaccessible to most other Realtors. HASSLE FREE TURNKEY INVESTING: PASSIVE INVESTING FOR FUN AND PROFIT