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 www.entrustnortheast.com 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
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
- Minimum yields of 15% annually and perhaps 100% in fully leveraged situations
are easily possible.
- Investment controlled by you 100%.
- You pay NO fees or commissions to anyone for anything at anytime.
This and other information is free.
- Gains and Profits may be Tax Deferred or Tax Free (Check with your
- 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.
- This investment could possibly create tax deductions and/or losses
that could shelter a portion of your regular income (again, see your
- 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.
- 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:
- 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.
- 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.
- 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!
- 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.
- 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.
- 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
- 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.
- 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?
- 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.
- 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
- 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
- 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.
- 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.
- 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
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 email@example.com.