Lets do the math on a rental property: Say a unit rents for $1,400 a month, lets minus $300 a month for property updates and taxes that leaves 1,100 a month = 13,200 a year; multiply that by 20 years is $264,000 Lets Say The Property Is Valued At 110k but when Looking At It From A Business Side With 20 Years Of Rental The Property Is Worth Not 110K But Its Worth $374,000 A Total Different Picture Than Just Real Estate Alone, The Property By Itself Is A Business.
First we own all the properties we list free and clear, meaning no property has any debt. We invest our money first before we take anything from an investor; using the property as the security to back investments.
40 Acres And A Profit is able to do many unique investment strategies, flexible options along with providing housing to many that don't qualify with banks and conventional lenders. As the owner of the properties within our portfolio, this gives us the ability to structure a new platform in real estate.
We believe things should be simple to understand, direct to the point without all the pointless talk, it's real simple. We invest first by providing a secure asset to protect and build upon with investing, example if we have a property valued at $80,000 we will only take up to 50% of that value ($40,000) with an ARV of $140,000 at an investment of 40K. (Example) The investor on a simple buy and sale would earn up to a 30% return = $13,000. All deals have unique factors creating higher and lower profits. The Real Estate is positioned to secure the principle investment.