Our Single-Family
Home Strategy.
The following criteria are used to identify single-family homes.
Focus Market.
We focus on Greater Houston, Beaumont – Port Arthur Metro Area, and its surrounding markets. Our goal is to invest within 90 minutes radius of each market.
- Greater Houston is the 5th most populous metropolitan area in the USA
- Business-friendly
- High population growth
- High employment growth compared to the nation’s average
- Personal finance website NerdWallet named Beaumont – Port Arthur one of the “10 Best Places to Start a Business” thanks to its low annual housing costs and high business revenues. The area is best known for world-class industrial complexes and extensive pipeline infrastructure.
Acquisition.
We work with private lenders and investors to fund our single-family home purchases.
- We get a constant flow of homes to review daily.
- Analyze each home based on the market value of the property once its renovated and the cash flow it could generate if we rented the property.
- If the deal makes sense, we will move forward with the acquisition.
- Once the deal is selected, we proceed and close within 10-25 days.
How the private loans are structured.
- The private lender is given the first mortgage that secures their legal interest in the property, and a deed of trust is issued.
- The private lender gets added to the insurance policy as the first mortgagee.
- Our LTV (loan-to-value ratio) is no more than 70% of the value of the asset.
Renovation of the home.
We have a set of contractors we use to remodel our properties.
Typically the renovation takes 30 days to 90 days to complete
Our team manages the repairs on the home to make sure it meets or exceeds market standards for the area the house is located.
Our main goal is to increase the value of the homes by updating and improving the general condition. This means doing major renovations like fixing plumbing, foundation, electrical, framing, roofing, and updating the home’s interior. Basically, it feels like a brand-new home.
Exit Strategy & Investor Returns.
Based on where the property is located and the value of the home once remodeled, we have two main exit strategies
2-5 years rental
We keep the property for cash flow. At the end of the 2-5 years, we can extend the note with the lender for another 2 years, or we can return the funds to the private lender by refinancing the property with a bank or with another private lender.
Fix and Flip
This typically is a short-term investment averaging 3-6 months.
Once the house is ready, we sell it retail, and when the house is closed, the private lender will receive their investment.