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July, 2011 Investor options
Taking advantage of the world's best residential property investment opportunity.
How else is it possible to buy a 3 bedroom detached American property, with tenant in situ, for 3 to 5 times less than the property's value 4 years ago? The answer: government subsidy. No other country on the planet could afford to subsidise Banks and other mortgage providing institutions to the extent of the American government. Whether it's sustainable or not isn't the point. It's throwing up a unique opportunity right now.
Buying foreclosed (repossessed) houses is simply helping yourself to a slice of this enormous government hand-out. And as if that isn't enough of a bargain, when a "section 8" tenant is provided, most of the tenant's rent is paid direct to you by the same government that paid off the often big mortgage on the property!
The challenge
Whilst the opportunity is staring one in the face, it's not necessarily a simple matter to cash in. If you go it alone, there are a number of hurdles to jump before benefiting. Here's a list of some of the obstacles:
- The buying. Banks are notoriously fickle and difficult to deal with on foreclosures. They get the government money anyhow, so they don't care.
- The best property is often acquired with little or no public announcement, as part of wholesale deals with big buyers.
- Avoid properties with any lien, debt or claim. It would be a nasty surprise to own a property only to discover there was some large debt on it.
- It's essential to pick the right location, to avoid acquiring an unlettable liability.
- Handling building works, it's no easy matter knowing what building works needs doing and controlling it from distance. It's an unfortunate reality that builders, as a species, tend to underperform when there's nobody to manage them.
- And lastly, picking the right tenant. One that pays and won't mess up your property.
Turn-key, no hassle packages offering 10% to 15+% return NET of costs - that is, after all expenses have been deducted, including house insurance.
The above list is, when you think about it, quite daunting. However, it can all be short circuited in one easy step by buying from us. We've done all the hard work. We know you are too busy and just not able to deal with all these issues. You just want the property and rent straight into your hands.
We have been successfully selling American property full time for over 4 years. We've sold many properties and are probably the best established USA foreclosure property selling agent in UK. Benefit from our experience.
Investors can either buy just one unit, or go for a multiple purchase.
Here's both options, including info on buying through a company:
1. One unit package
Many clients just want to test the water with a single purchase. Then when they realise it's for real, they buy others. There's two ways of doing this: Either buy a single property from the property list on this site. Or, if none are available - and that can happen as they tend to sell quickly - just reserve a similar by using the Contact Us form or calling us.
The houses we select are pretty much of a similar style. They are 3 or 4 bed family detached houses. On streets that have few or no foreclosed homes, with house proud homeowners as neighbours. Please don't expect the very best upper class mansion areas! That is just too expensive and the returns poorer. The best property is middle of the road. On decent streets.
And bear in mind that our sale prices of these houses are usually way under current bank valuation for mortgage purposes. Up to 75% under! Crazy, we know, but that's what we are trying to get across here. THIS IS A ONCE IN A LIFETIME OPPORTUNITY to acquire decent houses far under anything like normal market value.
The one unit package comes as a refurbished and let property. From day one you will earn a return, usually between 10% and 15% NET. Higher gross, of course. Consider the massive capital upside there is and you can see the opportunity.
Purchase an already refurbished, or in process of refurbishment, property as listed on the property for sale pages of this website. Advantage is that property and income is in your hands within about a month.
2. Multiple unit package (5+ houses)
  
 
We've done a number of deals for packages of properties like the pictures above. The client has typically sold high priced property in Australia or UK and looks to parlay the sum into multiple purchases in America.
As you can imagine, getting 5 houses for the price of one in their home country is very attractive to the investor!
Once we have clear evidence of ability to buy, we are able to drive the best bargain with the property sellers in the U.S., whether they are Banks or private vendors.
The purchase process is similar to single unit, with just the reservation fee multiplied if more than one unit is bought at once.
Again, all properties are sold with paying tenants in place, so you earn from day one.
Buying through company
Some clients prefer to hold their multiple purchases through a company. This is advantageous for two main reasons: Firstly, it offers a level of protection against personal litigation or claims for divorce. Secondly, it can be more tax efficient.
There is an additional cost of $1000 on top of purchase price as listed above in one unit package, to cover costs. Please note, this valuable company packing service is only available for 5 properties or more, although for tax purposes, we would not recommend holding more than 10 properties in one package.
The figures
Purchase of 5 properties: $49,000 x 5 = $245,000 (plus $1,000 if company is set up)
Income gross (before costs): $54,00 per year
Annual running costs for 5 properties (property tax plus rental management charge): $20,000
Income net (after costs): $34,000
(Figures will, of course, vary according to properties bought)
Net return after costs = 14% pa
When you consider that net return on residential property in typical "mature" markets is rarely over 5% after costs, this is an exceptional return.
And this does not include the real benefit of owning these properties, capital growth! Considering the property of $49,000 sold for $150,000 or so a few years ago, the potential for some sort of return to normalcy is obvious. And it's happening right now!
And, later, why not mortgage your properties and get (all) your money back!
Don't miss this once in a lifetime opportunity. Get hold of some of these houses before supply dwindles and prices rise sharply.
3. Buy to refurb
The vast majority of our clients buy with refurbishment and tenants in place. However, some may prefer to buy as if. Just look at our property for sale pages for any available. If none are, no problem, just email us for information.
Please note, that we have teams of highly experienced builders and usually provide a quote with property details, so you know what to expect if you wish to proceed this way.
For buyers of property not yet in a rentable condition, please note that you will need to board up the property to comply with City regulations. We can have this done for you at reasonable cost. Also, property gardens will need maintaining; again, not a problem and we can arrange this for you.
Our recommendation is strongly to buy an all in one, ready to go package. It's well worth it.
Industrial city or the sunbelt - we pick the best areas for steady rental and resale in future.
  
We've sold many properties in Detroit, Atlanta and Florida. The first two are heavyweight urban areas, with strong rental demand. And Florida is famous the world over for vacation property.
The offers are 100% real and proven. We are sure there's no market anywhere on the planet that can touch American foreclosed property for value - particularly those selected by property4peanuts.
Don't miss this once in a lifetime opportunity. Get hold of some of these houses before supply dwindles and prices rise sharply.
Alternative option for UK investors
This is an opportunity for UK investors to take advantage of the current undervalued US real estate market. This Alternative Investment Opportunity allows investors to experience an excellent yield for a very low entry price of only £10,000. The investment is offering fixed returns of 8% and clients can invest using cash or pension money via a SIPP. The investment term is 3-6 years but there is an option of guaranteed buy back after 3 years.
SUMMARY:
- Take advantage of the depressed US Real Estate Market
- Low entry price (only £10,000 needed)
- Low / No Risk Investment
- Investment open to UK Investors or Ex Pats with Pension / savings in the UK
- Unit Price £1,000 per Unit. Minimum Investment £10,000 (cash or pension money)
- Ideal if you have an old occupational pension, frozen pension or personal pension
- Investment can be made via a SIPP / SASS pension (no personal cash needed)
- Fixed Returns of 8% p.a. (before tax)
- High Rental Demand & Positive Cash Flow Investment
- Right timing… depressed markets with strong underlying economic fundamentals
- Planned exit as early as 3 years from closing
If you would like further information on this product please send an enquiry and we would be happy to send further information. All the information in the documents that will be sent out have been verified, checked and signed off by a certified solicitor or an FSA regulated operator.
Call with confidence:
Kent office: Paul at 00 44 (0)1795 844004
Email: office@property4peanuts.com
Or Liverpool office: Dan at 00 44 (0)151 324 0324 / 00 44 (0) 7809 647 987
Email: dan@property4peanuts.com
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01/30/2011