Many prospective investors have very similar questions when they are looking at using Discount Property Warehouse to purchase investment real estate, regardless of their global location. In fact, the biggest sales objection we get is that we seem to be “too good to be true”. However, after buying, selling, or consulting on over 1,200 purchase and sale transactions in the Memphis, Tennessee marketplace, we can assure you that we are very much real and very much here for the long run, and by your side for the duration of your investments.
The most common questions we get asked are:
Do you do the renovation? Answer is YES, all our property prices include a complete renovation, designed to minimize future maintenance costs and address all deferred and preventative maintenance.)
Do you have property management? (Answer is YES, we have complete licensed management in place for every property we offer. Our management companies are vetted by us and PROVEN to provide solutions for vacant properties in the form of highly qualified tenants, screened thoroughly and placed quickly and efficiently.)
Do you offer financing? (Answer is YES, we offer asset based, non recourse financing on every property we sell, regardless of investor credit score or nationality.)
What happens if my house never rents? (A highly unlikely scenario, when you use our investment system).
What is the process to buy and how does it work?
Let’s explore this question in a bit more detail.
We advise scheduling an appointment with one of the Discount Property Warehouse licensed sales consultants. Our staff are required to be full time real estate professionals, real estate investors and property owners to come and work with us Discount Property Warehouse. This is a great time to tell them about what you do, what you want to accomplish, and the types of rental yields you are looking for. This experience is vital to getting you the answers you need regarding real estate investing in the cities we specialize in, and help form our conservative approach to real estate investment property sales. We are not a sales organization whose goal is simply to sell property – we are a group of investors who specialize in offering real estate investments which mimic our personal portfolios as a function of overwhelming investor demand from clients globally.
Your sales specialist will show you a diverse array of investment properties to consider. Many of these will be single family residential properties, possibly with some multi unit housing as well. You will look at projected net yields, historical data, sales comparables, and other data items that will help you aggregate the information necessary to evaluate each property and make an informed decision. You will also look at financing options, loan amortization options, early payoff options, and much more. Also, at this time you will be given a list if client references and mobile phone numbers of many of our clients, who will gladly speak with you regarding their investing experiences and tell you openly about the good, the bad, and the ugly of their investment experiences with us. We encourage ALL our new clients to call our references and ask them as many questions as possible. Our goal is to insure our clients get as much information as possible before the elect to move forward with an investment purchase.
Once an investor has identified a property (or properties) that he or she wants, they will be asked to sign a simple, 2 page purchase and sale agreemen. There will also be some other disclosures that will need to be signed as well, following the real estate laws of the particular city you are investing in. Earnest money is required at this point – $2000 USD of nonrefundable earnest money is put down at this point and placed into a holding escrow. Also, at this time the investor will elect to take advantage of our trademarked, investment financing using Robert Feol’s Short Term Retirement ® Program. Congratulations! You have truly taken your first step to a more robust, financially independent life!
Our closing attorney will be given the sales contract package and will, at this point, begin to do the preliminary title work to set up a full title insurance policy. WE ALWAYS MAKE SURE EVERY PROPERTY IS SOLD WITH A FULL TITLE INSURANCE POLICY. Additionally, at this point we will begin to set up other paperwork for you like obtaining hazard insurance quotes for your property, obtaining property management agreements for you to execute with the management company who will be renting your property, and if applicable, getting a loan request to the private lender who will be making an investment loan, if you elected to take advantage of our unique, proprietary financing. Also, at this point if you have not set up your LLC paperwork or selected a name, we can refer you to our licensed providers who can assist you with obtaining an LLC operating agreement and all the other necessary paperwork to purchase in a US Company name.
We make it easy!
The closing attorney, when everything is ready, will send you an overnight package with all of the documents in it you need to sign. If you are obtaining financing, you may need to get some of the documents notarized. You will also at this point need to send a wire(national and International) or a certified Cashier’s check(US residents only) to the attorney also for your portion of the proceeds necessary to fund the sale. Make sure you use the appropriate SWIFT Code if you are sending an international wire!
The day after a property is closed, the construction work is funded and contractors begin working on the property. Traditionally, larger scale work, such as architectural roof replacement, is done first. Flooring surfaces and mechanical are generally done towards the end of the renovation, after all the necessary permitting is in place with the local city and county authorities. Traditionally the work is completed in 30 days from the day of closing or less, depending on various factors.
The renovation work is now completed, and the property management company begins to market the home for prospective rental families. Traditional marketing includes signage and property lists at the management companies’ rental office. More modern marketing methods may also be employed, such as the use of the digital space via Facebook, Craigslist, and so on. Once a tenant prospect is located, they are subjected to a variety of background checks, income verification, and rental history research, as well as standard credit reporting. A full security deposit and one month’s rent is required to move in.
Now that a family has moved into the property, investors can begin to enjoy the fruits of their investments. Certain minor details still need to be attended to such as transitioning vacancy insurance policies to dwelling policies, and our staff will assist with this, but for the most part this is where the investor can allow the management company to take over the process and do the heavy lifting. Many clients at this time begin to examine the possibility of acquiring additional properties, at times in multiples of 2 and 3.
Using our founder Robert Feol’s pproprietary financing program, The Short Term Retirement Program® allows clients to pay homes off in as little as five years. What this means is that, when you are using his model and accelerated mortgage paydowns, you are building equity VERY RAPIDLY and accelerating the asset side of your Personal Financial Statement. Additionally, you are paying minimal interest and maximizing your debt paydown. When you look at the factors, it just makes sense to use our proprietary financing which will empower you to buy multiple homes with the same amount of capital at your disposal.
See how the number stack up.