How much should I invest?

 

It truly depends on several factors. The first rationale to hurdle over is what you have available to invest versus what you have to live on. Let's be honest, the bottom line, the investment money will be in the process of investing for some time, generally six to twelve months. With that in mind, and contingent on what is affordable to you, not to mention the type of return expected from the amount of investment you are making, all ties into how much you should invest.

 

How much risk?

 

As with anything, there is always a risk. However, in real estate, the risk can be scientific and calculated, minimizing the risk when investing your money. The fact that real estate is tangible versus intangible makes it one of the safest avenues to invest your money.

 

Are there any warranties?

 

When it comes to the stock market, there are zero warranties. Banks beyond a certain insured amount or other avenues outside of real estate, still produce no warranties... In this case, with real estate, it has a long proven track record of producing the most millionaires in the country. Real estate is safe and has many benefits which is one of the few areas where money is unnecessary to invest and make money. The warranties derive from proper due diligence in the property itself, as well as location and current market conditions.

 

How much of a return can I expect?

 

This truly depends on the amount of money and length of time invested. Little to no money will bear fruits from your labor but will take some time to accumulate. If you invest a substantial amount, the minimal cost of that money can produce great rewards. We have several programs to offer and are directed for up to a year's investment. Programs can earn 15% to 30% in either a flat rate or participated net profit (on a per-project basis).  On the other hand, if the term is shorter, such as six months, the interest will usually average a 12% flat rate and lump sum return on your investment. The shorter the term the limited options in real estate. Short-term money can be used as transactional funding, front money (POF), on short-sale properties (secured buyer necessary unless hot area), low fix & flip, and/or wholesale.

 

How am I protected?

 

In any transaction, we are strong believers in protecting one's assets, even when it comes to our clients, regardless of whether they're selling their homes or in distress by way of potential foreclosure. In the case of investors, it remains the same. We normally will acquire a home and drop it into a trust. The trust contains beneficial interests providing privacy and protection to both our company and the investor(s) who become one within a trust. A bank account will be opened on behalf of this trust and all funds shall be directed to this trust. An appointed trustee and substitute trustee shall be assigned (in this case both parties or appointed) and investment shall commence. There are other variations which may be entertained with whatever fits our mutual needs.

 

I am interested and want to invest, so how can we start?

 

This is where it is exciting. We love investors who are active, willing to learn, and who are willing to participate with us in our shared endeavors. However, if you are seeking a passive return and do not want to get involved in the day-to-day operations, then that is fine as well. First, we will create trust and assign beneficial interests to one another. For example, 12% return equates to 12% beneficial interest and the investment of funds is 100% the investor's money with permission to invest on a per-project basis during the term of the investment. We shall also provide a Promissory Note to the investor with the return amount and additional terms in writing as an added protection. Once the trust has been signed, an account is opened on behalf of the trust, and the investment is deposited, we then proceed with the executed plan (as per our company &  investor) to secure a project in real estate. An example, buying a distressed home in foreclosure at auction or an REO or any other avenue comfortable to all parties involved. There is so much more than this answer can provide, but in a nutshell, this is how we shall begin.

 

If you have any questions regarding the above-mentioned FAQ, programs, website or other real estate or investment-related topics feel free to call me "Big" Henry at (512) 766-GRIP (4747). Let's set up a tabletop meeting to discuss how we can work together.

 

Your Real Estate Ally,

Henry Medrano IV
 

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