How do I close if I am out-of-state?
 All of the docs are emailed to you. You print 2 copies; sign both copies, and overnight them back. When we receive them, we sign both copies and mail your back your copy. It’s that easy!
What additional costs do I pay at the closing?
All are covered at that price!
How do I take title to the property?
Anyway that you want. The advantage is that when you buy a property, is that each property has clear, reputable and warrantable title and title insurance on the property.
 What information do I receive to make an informed decision?
With each property for sale, we provide info on the property and pictures of the property as well.
Do I have to manage my tenants?
No, once you purchase a property, you may purchase “The System” with our recommended property management company.You will be contacted by the property manager. He/she handles everything from filling the unit, registering the property with the city, city/section 8 inspections, collecting rents, maintenance calls, etc.
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How do I choose a property?
You will be given a list of properties to choose from & do your own due diligence. Choose the property you like best. You have time to do so. Your deposit is refundable during this period.
Contact us today to begin investing in your future!
Is there financing?
Yes, they are private lenders that will lend on it. They are out there but it may be hard to seek them out. If you have a source please contact us.
IRA accepted?
Yes, but has to be a self directed IRA. If your IRA is not self directed we can recommend companies that will roll them over into a self directed IRA.
Are concurrent closings allowed?
There aren’t mortgage companies involved therefore, yes. Although, the buyer has to have separate funds to buy at the closing table and investor money cannot buy into purchase. Only the use of private and separate money is allowed in concurrent closings.
Are there any mechanisms in place for due diligence?
The investor does their own due diligence. The Internet is a good starting point with online resources like Zillow and Zip Realty.
Renovations
Investors are buying at roughly at $25,000-$29,000. Investors can turn around and let us list it for a quick flip, do nothing, get their own property management, hold onto it long term, move in, get tenant in place themselves, create a rent to own contract themselves, get a system where they will get a tenant in place under a land sale contract. That’s usually the best and most commonly used strategy. The tenant/ owner can buy it as is or the investor (you or client) get an estimate and fix it up. If the estimate is over $5000 our partner company will pay the difference or exchange the property. Most investors prefer to keep it as is not get their hands dirty or come up with additional money.
Locations
There are over 20 different states throughout the nation. As a licensed professional you do not want to fall in love with location. Even if the client demands, advise that it may not be the best or smartest decision. Locations are in Middle America working class neighborhoods. Please keep in mind that the most sought after locations do not particularly have the best properties.
Can we get one in a certain city or state?
Yes, those are the custom orders for the big players and purchases. For example, a hedge fund or someone with a lot of money, buyers themselves that want to buy a block of them.
Discount on properties?
No, an exception may be made on multiple unit purchases
How do I send in payment?
A: A wire transfer, check or money order. The checks are sent into the Escrow Agent, or email us
regarding wire instructions.
Can I use funds from my IRA?
A: Yes, please call your trust company or Entrust at (727) 581-9853.
Are there any closing costs?
A: No, all closing costs are included with your fee.
What if a property is very “beat up” & in a bad neighborhood?
A: The property’s location or condition is of no worry to you because our “system” takes care of that.
If the inspection crew determines it’s unlivable, the municipality deems it condemned, we will exchange
your property with one that can work within our system.
How long before you can find someone to move in?
A: It typically takes anywhere from 3 – 6 months from the time you receive title to the property. Please
see the “Timeline” section in the information pack. You can avail of our guaranteed rent for 6 months program if getting a tenant in place immediately is a requirement.
How do you find renters for my property?
They are not renters and this is not a “rent to own” or a “lease to own” situation. Renters and lessees
don’t own the property and as such don’t take care of it as well. We actually sell the property to the
occupant before they move in by signing a land contract with them. The monthly payment is usually
less than the Local Market Rent, so people get to own a home for the same price or lower then rent.
It’s an obvious decision for them.
How do you market my property?
Several ways. We put a sign in your yard that reads “Own this home for $700 down and $550/month”
for example. We advertise on websites, buy leads from lease option companies, or sometimes we enlist
the help of realtors. It just depends on the situation.
Who takes care of any fix-ups/maintenance/renovations?
The occupants are responsible for this. When something breaks down or needs repair we do not call
our bank to handle it. This is why they get such a great deal on the home, because they take it “AS IS”
and are willing to put in some sweat equity to fix it up.
Who Pays the Taxes, Utilities etc?
Since you have technically already sold the property the tenant/owner is responsible for taxes, and other maintenance fees, utilities.
Who is the Insurance Company?
The Property Management Company will provide that to you.
When are Taxes due?
Taxes are usually due later once you receive the Deed. That can take 2 – 3 months sometimes (The
Banks are inundated with paperwork). And it also depends on the billing cycle of the particular State.
For example, you receive Title on Jan 1, an occupant moves in Apr 1, and you receive the Deed
sometime in June. Let’s suppose your State bills property taxes in April and October. You would not
receive a bill in April because you didn’t have the Deed yet. By the time the October billing cycle
comes you will be billed from the period starting January 1 (you would have also collected monies
from your occupant in escrow since Apr 1).
How do I get my monthly payment?
The funds are received by the escrow company (less the 10% management fee charged by the Property
Management Company) and they wire it to your account or send you a check.
How long has we been doing “this”?
This “system” has come together last year 2008 due to market conditions. The process this system is based
on has been around for over 20 years. We have always been able to go to the auction house, buy a
property for cheap, clean up the title, get rid of all the liens like taxes, water bills, utility bills,
renovation liens, etc.., find an occupant, and then sell the note later. This is not new. With the sub-
prime meltdown last year the banks began to panic and unload properties in bulk at a loss. This
basically created a niche to systemize the process described above. This allowed the company to do
this on a mass scale.
Do I need to sign a new contract to change ownership to an LLC? To add a spouse/partner?
A: No. You only need to notify the Property Management Company of this before you receive your Title
and you have about 30 – 60 days before that happens.
How are my profit, monthly cash flow, & the price of a Mortgage Note determined?
A: It’s a combination of 3 variables:
1) The Local Market Rent
2) The Note Value
3) The Amortization Period
The local market rent determines the monthly cash flow, how much you can charge (e.g. $300). The
potential occupant, like you and I, buys based on the monthly payment they can afford and agreed to.
The Note is usually done at 10% interest and amortized over 30 years. So for this example, a payment
of $300, at 10%, amortized over 30 years, will mean an initial Note Face Value of approximately
$35,000. So they may sign an agreement with you for $35,000 at $300/month for 30 years @ 10%
interest, since the amount they pay is equal to or less than rent. You then collect the $300 mortgage
payments and hold the note similar to a bank.
How does the sale of the note happen? How much do I get on the sale of the note?
A: The Management Company shops the contract to various note buyers.
The length of time you collect
monthly payments is considered the “seasoning” period for the Note companies. Some companies
require more seasoning, some less. Those that require less seasoning where you can sell your note after
4-6 months may pay only 65% - 70% of your note value. If you wait longer, 9-12 months, you may get
80%-85%. Less seasoning means more risk to them. If you’re lucky enough to get someone who can refinance on their own using the FHA program you actually get 100% of the note.
We encourage the owner occupant to purchase credit repair services to improve their chance of FHA loan refinance. You
might even want to offer this as an incentive.
If I have a $35,000 note, what percentage of that would I get?
A: You will get a percentage based on the value of the note less the principal already paid off.
Ex: If you
collected $300 x 12 months = $3,600. Since this is the beginning of the Mortgage, it’s mostly interest
and of the $3,600 maybe only a couple hundred dollars is principal, let’s say $200 is principal. So
your Note’s face value after a year is $34,800.
Don’t forget the $1,000 or 3% brokerage fee, whichever is higher, charged by the Management
Company. Their interest is your interest. The more they make the more you make.
Can I just keep the note for longer?
A: Absolutely. It’s your house mortgage note and can do with it as you please. Keep it for 30 years if you
like.
What sort of return on investment can I expect to make?
A: That depends if you choose to sell your Mortgage Note or keep the monthly cash flow.
Either way it still works out to be a great return on your investment.
So after I pay, what happens then? How soon will I be contacted & by whom?
A: After checks have cleared and funds are released, we will issue the address to your property within 5
business days via email. The Title to the property will be issued by the Property Management
Company within 30 – 60 days. It may work out to be longer or shorter based on the situation.
Can I pick which state the property will be in? Can I wait for a higher value property?
A: No. The properties are sold on a first-come, first-serve basis. We buy these properties in bulk and are
obligated to purchase a property so long as it matches the criteria set by us; livable with minimal
repairs & a minimum value of $45,000. This criteria best accommodates our suppliers and grants us
favorable treatment & pricing with them.
Who does the valuations for the properties?
A: We use an average of the three following different nationally recognized valuators:
1. Cyberhomes.com (owned by Fidelity National Financial, Inc. [NYSE: FNF]
2. Zillow.com
3. Trulia.com or RealEstateABC.com
What does a livable property mean?
A: We use these as criteria.
1. The municipality
2. Our crew inspection
3. We are actually able to find someone to move in
4. The repairs are more or less cosmetic and do not exceed $5,000.00 from our Property
Management Company’s Contractor Estimates.
Who takes care of finding a suitable candidate to move in?
A: The Property Management Company.
How involved can I be in finding buyers, tenants, or even renovations that I may want?
A: Once you acquire a clear title to the property, you own it and can do as you please.
However, The Property Management Company has implemented a system that has been in place for over 20 years.
With the exit strategy built in, this works best for all involved.
What if the buyer I have cannot make the monthly payments?
A: Our Property Management Company will evict them for a fee of $600.
The Property Management Company will find a new candidate to move in.
What if the tenant abuses my property?
A: They are actually not a tenant but the home owner and as such treat the homes as owners not as
renters. You as the investor hold the Mortgage Note on the property, similar to a bank.
What if maintenance or repairs are required?
A: The occupants are responsible for this. When something breaks down or needs repair we do not call
our bank to handle it.
What if a UFO lands in the backyard and demands occupancy?
A: Charge them a nightly rate just as a hotel would. Include breakfast if they're nice.
What about taxes & legalities?
A: We recommend that you consult with a CPA and a local attorney before purchasing properties.
Are utilities turned on when we purchase the property?
A: No. They get turned on when someone moves in and they are the responsibility of the occupant.
How do I know the note will be sold?
A: The Property Management Company will choose candidates that are in-line with Mortgage Note
Companies’ requirements. The Property Management Company does not become wealthy from
charging a $35 - $50 monthly fee on the note, rather they are more interested in selling the note for you
and making a 3% brokerage fee, so their interest is your interest. The discount Note purchasing
industry has been around longer than this program has. We do not control that industry; although we
believe it will continue as it has in the past.
What are the different exit strategies?
A: * Sell the Mortgage Note using our system
* Hold the Note for positive cash flow
* Sell the Property/Note via a “quick sale” to a local cash investor
* Potential refinance from the occupant... paying you 100% of the Note
* Fix & flip.
* Keep the Property as a Rental
How do I get started?
A: Read over the Purchase Agreement as well as the Property Management Agreement and contact us to
move forward with your investment.
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Why are the prices so low? 
