Considering Real Estate Investing?

There are thousands of ways to invest in real estate, and because sound investments rely on the individual strengths, financial goals, and risk tolerance of each investor, rarely are any two investment strategies the same. We regularly work with private investors – normal people with jobs, families, and other obligations – to maximize the return on their money and time.

Our investors are the reason our company succeeds, and we protect them in several ways:

• Investors will ALWAYS be paid in full before any profits are distributed to the company.
• We buy excellent deals with a low level of risk.
• We buy properties that appeal to a mainstream audience. No “quaint” or unusual properties without good reason.
• We put our own capital into each project. This helps ensure there will be more than enough capital to fully pay investors even if something major and expected impacts profits.
• Investments are secured with a Deed of Trust and/or Promissory Note when applicable.

Our investors are our partners. We strive to provide the straight-forward information that they need to make informed investment decisions.

 

Below are a few examples of how an investment can be structured.

 

Erica has money invested in a CD that returns 1.55%. After the CD matures, she decides to invest in real estate and contacts ASR to discuss her options. Because she prefers short-term investments, averaging 6-12 months, Erica decides to invest $50,000 in a flip project. She knows little about real estate and wants a completely hands-off investment. She agrees to a 10% return if she receives a Promissory Note and a 1^st position lien on the property. There will be no payments but the principal and interest is due at either the sale of the property or one year, whichever comes first. The house is renovated and sold in six months, at which time Erica is paid $52,500. Because this first investment went so well, Erica decides to loan the $52,500 on another project.

 

Michael has been following the work of ASR since his daughter bought one of their houses a year ago. He is impressed with the quality of their work and the fact that they generally price homes below market, giving lower-income families an opportunity to buy safe, updated houses at a reasonable cost. He is a long-term investor, so he decides to give ASR a 2-year, $150,000 loan at 10%. He will receive monthly interest-only payments of $1,250 with a balloon payment of $150,000 at the end of the 2-year term.

 

Tracy does not want to stay at her job long-term. She doesn’t hate it, but also does not find it fulfilling or exciting. Tracy does the math, and decides that she needs to earn $17,400 a year passively in order to take the pay cut and start working with her true passion: wildlife rescue and rehabilitation. She approaches ASR to discuss her options. Because Tracy’s W2 job pays well and she doesn’t mind remaining employed for another year or two, she decides to become a 50/50 financing partner on a mobile home park. In this partnership, Tracy and ASR will split all profit generated by the park in half. The two parties decide to set up a separate Limited Liability Company to hold the park. ASR locates a suitable 56 space park in a good location that needs renovation work.

After negotiating the price with the seller and doing their due diligence, ASR determines that with $48,000 in strategic renovations, the $420,000 park will be worth $610,000. Tracy funds the down payment and renovations. The park generates $36,148 profit each year after debt service. Tracy earns $18,074 a year, and has a 50% interest in the park’s $274,000 equity. When the park is refinanced five years later, Tracy is able to pull most of her money out of the park.