Make 145% profit in 3 years
- Purchase from £10,000
- 15% profit year 1 - 3
- 100% capital return and 100% uplift
The exit strategy works as a result of buying ‘A’ standard properties from Bank stocks purchased at significantly reduced rates.
These properties are then sold fully refurbished to buyers pre-qualified by our management company. Comparable houses are currently available through realtors in the $80,000 range, but our strategy allows us to sell to the end user for the discounted price of $50 - 60,000 creating instant equity and bank security.
All qualifying buyers are offered mortgages which are underwritten and arranged through one of our three lenders.
Year 1 - 15%
Year 2 - 15%
Year 3 - 15% + 100% capital return
See our 1 year US Property Investment here
Detroit suffered more than most with the economic downturn but is showing measurable signs of recovery. All of the properties are of brick construction and are only bought if the houses on either side are occupied.
How are the returns made?
There are around 6 million foreclosed properties on lenders books which enables good quality homes to be bought incredibly cheaply. In Detroit, for example, the maximum total spend on purchase and refurbishment of a single home is $25,000. Each home is then sold for around $45-50,000 so the project is hugely profitable. Over 750 homes have been completed to date and the project is expanding rapidly.
What happens if the people at the back-end can't get a mortgage?
There are 22 lenders offering mortgages but finished properties are also sold to a number of property investment companies who will then lease them.
How would the Exit Strategy investors be affected if the American market were to crash further?
Due to the profit margins that are worked to, a 20% drop in house values would have little or no affect. Even less would be paid for the properties in the first place so profit margins would be retained at around their current level.