Realty Funding Corp.

Real Estate Investors, including Self-Directed IRAs and Roth IRAS

Investors are finding out that there is a safe and easy Program that will enable them to earn annual YIELDS of 15% up to 100% in real estate using the SINGLE FAMILY HOME strategy.

These YIELDS may even be TAX FREE if using the Self-Directed ROTH IRA or TAX DEFERRED if using the traditional Self-Directed IRA. While we can not give any Tax advice, you should check with your Tax Advisor or the IRS. Also go to for more information on Self-Directed real estate investments. In addition, there are banks that will loan money to your Self-Directed IRAs that will enable your IRA to purchase investment property with NO RECOURSE TO YOU as an individual. Only your IRA would be liable. Call us so we can tell you who these banks are.

The 15% yield is estimated using a cash investment to purchase a single family home. The 100% yield is estimated using full leverage of 100% mortgage financing. Yields in between the 15% and 100% will depend on the ratio between cash invested and mortgage financing. Remember that there is an inverse relationship between Yield and total dollars invested.

This Program does not have any trade secrets or proprietary information. There are no intellectual rights that anyone owns. There are no books, tapes or CDs to purchase nor expensive “Boot Camps” and/or seminars to attend. In fact, after reading this and then working on just one transaction with us, you will know almost everything there is to know about this most safe and profitable, yet simple, real estate investing technique.

This Program does not invest in any “GET RICH QUICK” schemes like the ones on late night T.V. infomercials. It does not invest in foreclosures, rehabs, burnt out buildings, bank repos, HUD homes, “flips” or properties needing repairs or improvements. You should not want to profit on someone else’s loss or misery! A WIN, WIN, WIN Program is always better!

This Program is directed towards only one type of real estate: THE SINGLE FAMILY HOME.

Here are just a few of the benefits and advantages of this real estate investment Program:

  1. Minimum yields of 15% annually and perhaps 100% in fully leveraged situations are easily possible.
  2. Investment controlled by you 100%.
  3. You pay NO fees or commissions to anyone for anything at anytime. This and other information is free.
  4. Gains and Profits may be Tax Deferred or Tax Free (Check with your Tax Advisor).
  5. The single family home is the safest and most liquid of all real estate investments. The single family home is also the best investment over the years as almost everyone dreams of home ownership.
  6. This investment could possibly create tax deductions and/or losses that could shelter a portion of your regular income (again, see your Tax Advisor).
  7. After a little “Seasoning”, you could refinance, get ALL of your CASH investment back, have no money invested and still earn, through equity build-up, some cash each and every month.
  8. You can sleep at night knowing full well that your investment is safe. In fact, an economic downturn in the stock market may have little, if any, impact on your real estate investment.

While the Program is to simply invest in single family homes, there is a lot more to it than that simplistic concept. What do you do with one after you buy one? The Program is designed to lease to Tenants that want to buy the house but, for whatever reason, are not NOW qualified to secure a mortgage or, if qualified, may not NOW wish to buy. The Tenant that does not qualify may be paying all expenses and bills in cash and has no credit history. The Tenant that may qualify, but does not want to now, may be in a messy divorce (or other legal situation) and is being advised not to buy anything presently. Such Tenants would be placed in an Investor’s house for a maximum lease period of 24 months. During the lease period, the Tenant will be developing and/or repairing his credit history so that he will be mortgage qualified when the time is right. Once the Tenant is in, you sit back, collect your lease payments and wait for the Tenant to buy your house. You will know well before any deal is made what the numbers are. That’s our job! If you do not like the numbers, you don’t do the deal!

Now you know the Program’s basic investment philosophy! But there is a lot more to this very simple concept. To ensure success, an Investor should follow certain rules. I will outline some below:

  1. The Seller/Owner must reside in the house to be purchased for your investment. No matter how good a Tenant is, nobody keeps a house in better shape and cleaner than an owner living in the home.
  2. The house must adhere to the first cardinal rule of residential real estate, and it is not LOCATION, LOCATION, LOCATION. The new mantra is SCHOOL DISTRICT, SCHOOL DISTRICT, SCHOOL DISTRICT. Two identical houses, one in a good school district and one in a mediocre district, could possibly have a 25%-35% difference in value. The good school districts must be in the suburbs as we do not usually favor cities.
  3. The house must be priced for the middle class. Here in the upstate New York area, that price should be in the $150,000-$275,000 range. There is a shortage of good housing in this range. A shortage of product keeps the value up. If and when the real estate bubble bursts, the houses in the high end ($350,000 and up) will be the first to suffer. In 2006, 31% of all mortgages written were for interest only. Another 20% were adjustable rate mortgages. Many of these mortgages were written because the Buyers wanted as much house as they could possibly qualify for and thus get a bigger and more expensive house for a smaller and smaller monthly payment. When their interest rates adjust, these Borrowers may not be able to make their monthly payments. Demand for the more conservatively priced middle class houses will soar!
  4. The house must be free from any mechanical defects and must have a sound roof and structure. The LEASE WITH OPTION contract (the foundation of this whole Program) will state that the Tenant is responsible for all maintenance and repairs while the Landlord (Investor) is responsible for the roof and structure. By making sure these components are in good shape, you insure a worry free and expense free ownership period until such time as the Tenant purchases the home.
  5. The LEASE WITH OPTION contract is written in such a way that the LEASE WITH OPTION Tenant appears to have an interest greater than that of a mere Tenant. This is done, for one example, by the Tenant’s obligation to make all repairs and maintain the property. This allows the Tenant to “Refinance” the house rather than secure a Purchase Money mortgage. By refinancing under a lender’s mortgage only program, utilizing the Tenant’s documented proof of all on-time lease payments, the Tenant would borrow against the appraised value rather than the purchase price. The appraised value of the house usually appreciates above the purchase price resulting in the possibility that the Tenant will need no money down to buy the house. The Tenant therefore has a vested interest in keeping the house in good condition as he knows an appraisal will be done at the end of the lease.
  6. The Tenant selected must have a very good chance of being qualified for a mortgage during the lease period. A thorough knowledge of credit scoring and underwriting is very important. Again, that’s our job!
  7. The LEASE WITH OPTION contract must be crafted in such a way that it ensures the investor a profit worthy of his effort. It must be crafted so that the lender will treat it as a “Refinance” rather than a purchase 18-24 months down the road. The contract must be crafted so that it makes economic sense for the Tenant to maintain timely lease payments and then to ultimately fulfill his Option to purchase the house. All of the above is, again, our job.
  8. The house must be purchased for at least 5-10% below the market value. By concentrating first on FSBOs (For Sale By Owner), we usually can attain these savings as there is no Realtor’s 5-6% commission involved yet. In addition, many Sellers grant a “Seller’s Concession” of 1-6% of the Purchase Price. We try to tap into this area also. The Net result is that the average home seller nets 90-92% of the Purchase price.

AS you can now start to see, there is a science to this very simple plan. There are a lot more rules but time and space do not allow us to go into further detail at this time. Should we work together, you will learn all that you will ever need to know. Or you could go out on your own as this is surely not rocket science.

What can Realty Funding Corp. do for you as an Investor?

  1. First, what we will not do. We will not ever take one red cent from you for anything at anytime. We will never charge you any fee or commission. We make our money as a Principal in every transaction.
  2. We find the right house at the right price in the right suburb. We might buy that house, lease it or take an option. We ultimately lease each house and “Assign” that lease to the Tenant for an “Assignment Fee”.
  3. We find the right Tenant for the right house for the right reasons. We use generally accepted underwriting principles and guidelines to check income, credit scores, work history, family and criminal history, and any and all other relevant factors to determine the best possible Tenant.
  4. When we have the right house coupled with the right Tenant, we then craft the right LEASE WITH OPTION contract to satisfy all as in G. above. This is the heart and soul of the investment concept.
  5. When the Tenant begins his lease, he is put on a credit “Diet”. He is given a number of tasks to perform to enhance his credit scores. He is also given a list of errors or entries that may need correcting on his credit report.
  6. Towards the end of the lease period when the Tenant’s credit has been improved , a licensed New York State Mortgage Broker works with the Tenant to secure the necessary mortgage financing to purchase the house.

As you can see, we do almost everything that needs to be done. If you are interested, fax us at 518-432-0643 or email us at

Investors Self-Directed IRA's and Roths Realtors Loan Officers Mortage Brokers Florida/Vacation properties Owners and Sellers Qualifying for the Lease with Option program Tenants to Homeowners