MI understands the intricacies of investment management and its executive team has a successful track record and a strong desire to optimize our clients’ portfolio’s by increasing cash-flow, enhancing property value, optimizing rents, and implementing sound business judgment while maintaining the highest degree of integrity. As the stock markets continue to show volatility and low returns, the money markets is now driving investors to search elsewhere for stronger investments that provide higher yields.
Investing in real estate has become increasingly popular over the last fifty years and has become a common investment vehicle for many professionals. Residential investment properties have become a highly demanded product to many investors and companies that specialize in development of residential homes are now buying up foreclosed and short sale properties at a discount and flipping them for a profit. MI works with clients to acquire residential properties in the following asset classes:
- Single Family Homes
- Four Plexes
- Residential Land
Although there are big profits to be made in the real estate market, buying and owning real estate can be a lot more complicated than you may think. There are many ways to go about acquiring residential investment properties but there are a few strategies which MI focuses on with our clients, they are as follows:
Residential Fix & Flip
The commonly used term ‘Flipping’ homes falls under the Fix & Flip strategy, in which real estate investors buy properties with the intention of holding them for a short period of time, often no more than three to four months, and selling them for a profit. Investors look to acquire properties that are outdated, damaged, and in need of some sort of repair or fix up. Savvy investors can also buy properties that are either significantly undervalued or are in a very hot market.
Flipping homes requires a short-term cash investment, which is often a cash investment. Though there are companies out there that will loan money to investors who flip homes, these scenarios are often secured through a strong relationship. If a property flipper gets caught in a situation where he or she can’t sell a property in a timely manner, it can be devastating to the investor’s returns.
Residential Buy & Hold
When an individual, company, investor, professional, etc. (the “Buyer”) buys a property with the goal of keeping it long term and renting it out to a tenant, we refer to this as a Buy & Hold Strategy. The Buyer becomes a landlord and is responsible for paying all the costs associated with the property. The property is marketed at a competitive price and tenants are secured via a residential lease agreement. It is always a goal to achieve a monthly positive cash flow, in which the rents collected exceed the total mortgage, insurance, taxes, and all other expenses that go along with the owning the property.
In addition to monthly cash flow, this strategy also includes the goal of appreciation, in which the Buyer holds the property for many years while property prices continue to rise. As property values rise, equity is established and the Buyer begins accumulating long term wealth.
To secure a successful transaction, we work to control costs as we work in conjunction with our clients’ ﬁnancial and legal advisor’s regarding due diligence, escrow, ﬁnancing, and legal representation. As trained negotiators, we will create the necessary offers, counter offers, and ﬁnal purchase contracts and/or ﬁnal lease documents as needed – and keep you informed at each signiﬁcant step of the way!
Marketing Properties For Lease or Sale
Prior to marketing a property for sale or lease, MI develops a fair market value, based upon subjective and objective available market data. Once a value is established, we create a multilevel marketing strategy that targets prospective buyers, users, and/or investors through media advertising, direct mail, broker cooperation (local and national), marketing signs, brochures and online services.
Contact Us today to learn about our residential investment opportunities!