Investors: Get Involved…

Many investors are eager to get into real estate, but they either don’t have the time or don’t know where to get started.

Some people are interested in buying houses that need repairs or upgrades, then “flipping” for a short-term profit. (Judging by the number of TV shows featuring flippers, this seems to be a very popular topic.) Other investors are more interested in rental income and perhaps long-term gains from appreciation.

Each approach has its advantages and disadvantages. For the most part, though, I’m involved in the former: buying properties at a discount, then selling them at a retail price shortly thereafter.

Of course, I try to do as many deals as I can in-house for the simple reason that I’d like to keep as much of the profit as possible. That’s just good business. However, it happens now and again where I have an opportunity in front of me, but I don’t have the capital necessary to take advantage of it. The simple fact is that I’ve spent a lot of time and money on marketing lately, and sometimes I have more potential deals than I can handle with my own resources.

This is where you might come in, assuming you’re interested…

There are plenty of details as to how my business works and how you can get involved, and I’ll make those available later, but here’s a quick summary of your options as an investor:

  1. You can loan me the money for the deal, and I’ll pay you a rate of interest that is far higher than you’ll earn with today’s fixed-income investments. You won’t share in any of the profits from the deal, but your interest will be paid regardless of whether the project is successful. This option is best suited for people who want to take as little risk as possible, while still earning handsome returns of between 9% and 12% annually.
  2. If you’re willing to take a little more risk but you still want to earn a minimum rate of return on your money, we can take a hybrid approach. With this scenario, you’ll share a portion of the profits from the deal, but you’ll also earn a minimum return on your capital (usually between 3% and 6% annually). With this option, you’re still getting paid your interest first, before any profits from the deal are divided up, but you’re also enjoying some upside in case the project is a real winner. It’s a way to get the best of both worlds. While there are no guarantees, a good target return for this option is somewhere in the range of 15% to 20% annually, including the interest paid.
  3. The third option involves more risk than the other two, but it also offers the highest potential return. In this case, you become a straight equity partner in the deal, and we share the profits as agreed. You don’t earn any interest on your capital, but you get a larger share of the profits compared to the previous option. Again, there are no guarantees, but it would be reasonable to aim for an annualized return of 25% to 35% as an equity partner. My historical results, which I’m happy to share with you privately, will prove that these target returns are realistic.

If you’re intrigued by this and want to learn more, there’s more information I want to share with you. Specifically, I will:

  • Show you how I find these deals and why the opportunity exists.
  • Tell you what I look for in each deal, and what separates the good from the bad.
  • Show you the numbers behind the houses that I have flipped in the past, including the deals that did not work out as planned.
  • Share with you the “lessons learned” from each of my past deals.
  • Discuss the various investor options and speak more specifically about terms and target returns.

And of course, I’ll tell you all about myself, because obviously it’s important for you to feel good about the people with whom you’re doing business.

If you want to discuss this further, please either call me at (678) 366-8100 or send me an email. (I was originally going to write all of this stuff out and just make it available for download, but upon reflection I really don’t want this information out there for everyone to see.)

Or, if you’d prefer that I talk to your accountant, attorney, financial adviser, or someone else you trust, please feel free to pass along my contact information. I’m an open book.

Thank you for your time and interest.

Yours truly,
SIG