EEP, Expert in Niche Real Estate Investing, Announces Top 3 Misconceptions that People have about Real Estate Investing
(PRWeb) February 1 , 2007 -- Exclusive Equity Partners, LLC, a wholesale real estate buying group, has the answers to the top reasons why people think they can’t be a player in today’s investor arena. Kevin Maloney, CEO and Founder of EEP, says: “With the huge incentive packages we’ve negotiated with our real estate developers we really are in the drivers seat for our investors. Our investors receive $30,000 to $60,000 at closing along with a long term 5 year rent guarantee. In essence, the developer is sharing the profits of the project with our investors to accelerate their sales. It’s a remarkable “win-win” situation.”
In a soft market here are the hard facts; developers and banks have teamed up and jumping high to overcome these top 3 investor hurdles:
1. Money -- Traditional real estate investing usually requires 20% down to appease the bank. A $200,000 condo would be $40,000 down payment plus closing costs. The 20% down also puts the traditional investor in a comfortable cash flow position as well. But, that’s more money than the average investor has sitting around in this day and age. This keeps most investors out of the marketplace. A savvy investor will utilize 0%- 5% down programs that cash flow positive. They’re out there. There are even new creative programs directly from developers now that pay you $30,000 to $60,000 upfront at closing. Check this out: 5 Year Cash Flow Analysis. These new investor mortgage programs were created to accelerate sales for developers and offer smart investors incredibly lucrative money back deals. Brendan Bolger, partners in a leading financial firm, commented: “These new creative mortgage loans have allowed investors to put down only 5% and have a positive cash flow from day one. This offers the opportunity for investors to purchase more than 1 unit and take advantage of such a lucrative program.”
2. Management -- Most average real estate investors have experienced or will experience management nightmares. First you have to get the right renter, collect the rent, maintain the property, take the phone calls 24/7, vacancy worries, legal eviction possibilities and more. Most investors want to manage their portfolio not their properties. Managing is either a necessary evil for yourself or you have to pay for a management company. Now there are new investor programs that have all inclusive “hassle free” management included in the deal that do everything for you. There are also up to 5 year rent guarantee programs where the developer pays the investor a rent check directly every month whether the developer has your unit occupied or not. Check out this: 5 Year Incentive Program. These new developer incentives are what are really driving the market and smart investors are in the driver’s seat. Hal Matheson, Director of Sales of a major Florida developer, said “By having our new ‘hassle-free’ management in place our buyers are now relieved of the stress and financial burden they may have previously experienced.”
3. Inside Track -- Any individual investor can do his own homework alone or he can investigate investor buying groups that really do the market research on a regular basis. They study the most appreciating real estate markets, team up with the developer directly, purchase in bulk, negotiate wholesale pricing and set up lucrative programs for its investors. Individual investors all still in control of their own deal but have the investor team behind them. You get on the inside track with the right strategic group and you’ll be riding the fast lane to appreciation. Check out: Investor Brochure.
Exclusive Equities Partner Maloney concludes, “We purchase in quantity early on in a project when we can negotiate our best deal creating the optimum package for our group of investors. This current investor program is one of the best packages we’ve put together and quite honestly one of the best deals I’ve seen out there and I’m ecstatic to be able to offer it to our investors."
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