Builders continued to build, trying to anticipate and forecasting endless demographic support and demand. After several years of uncontrolled and excessive supply, purchasing single family homes and condominiums has slowed down significantly and prices have fallen to reflect this market weakness. This temporary down turn will be self-correcting, due to market influences.
It was initially bought on by artificially lower interest rates that caused a building boom and buying frenzy that was greater that any ever seen before in history.
OPPORTUNITY AND EXIT STRATEGY
Once again, these latest events remind us that History is the best teacher and once again, the opportunity to take advantage of these circumstances is available to us today.
We are just ending this latest cycle of condominium investment irrationality. Astute investors are once again entering the market to take advantage of the lower pricing forced on this most recent group of developers and sponsors.
Once again, after several years of “straight up” pricing and a belief in the infallibility of their decisions, developers jumped into a market fueled by changing demographics (“raw” population increases), but with little understanding of the characteristic changes that had taken place within those demographics, during the last ten years.
At some point the market will always slow down and correct. Shifts in population, over building, over-pricing, or any other number of factors will appear and like all other markets, a temporary slowdown and correction will occur.
An overheated condominium conversion industry was not equipped to deal with slowdown periods because generally the reserves for each project contain only a small allocation of funds for short periods of time to cover the developer’s over-optimistic time period required for conversion and sales.
Our inventory comes from these developers, the developer must sell or go under. There is no choice and very little time. As you all probably understand from your own life experiences, any problem can be solved in various ways, except cash flow. You must bring cash to the table.
This is our buyer’s exit strategy…..Make the money on the day you buy the property. Collect the money on the day you sell.
As a buyer, you are the beneficiary of our proven experience and expertise in large project acquisition and financing.
Your “walk in” equity is one of the highest for any buyer of a conversion condominium and includes two categories; (i) payment of all buyer’s closing and financing costs and (ii) your voluntary participation in the Master Leasing Program, designed to provide the you with the highest “cash on cash” returns generally available in the industry .The following costs and expenses may be paid for you at closing, depending on whether you choose a Master Lease program and the term of the lease.
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100% of mortgage financing charges (including mortgage points, if any)
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100% of mortgage recording costs
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100% of mortgage banker’s processing and administrative costs
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100% of transfer taxes
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100% of appraisal costs
100% of title insurance, fees and legal costs
After the closing of your purchase and completely at your option, a Master Lease Program is available to you at no extra cost.
You have a choice of two programs. The first program is a “Standard Master Lease Program” and is for a two year period. The Base Rental Amount for our Standard Master Lease program is payable in twenty-four (24) equal monthly payments that generally exceed your monthly mortgage payment and with ninety (90%) percent financing will generally allow a hard money cash flow.
We pay all closing costs for a buyer who selects the Standard Master Lease Program.
The second program is the “Extended Master Lease Program” and is for a three year period. The Base Rental Amount for our Extended Master Lease Program is payable in thirty-six (36) equal monthly payments, that are generally at least equal to your monthly mortgage payments but depending on the strength of your personal credit, may be less than your monthly mortgage payment and require some additional monthly contribution. The buyer who selects our Extended Master Lease Program pays all closing costs.
With either program, the master leasor pays the Base Rental Amount directly to you each month. These funds are your property and can be used at your discretion. With either program you can use the rent you receive to pay your monthly mortgage payment OR, if you have no mortgage payment or a smaller monthly mortgage payment, the funds not used for your mortgage payment can be used for any other purpose you determine. The investor’s term for excess funds that exceed your monthly payments is: “CASH FLOW”.
Both the Standard Master Lease Program and the Extended Master Lease Program require that in addition to the payment of the Base Monthly Rental Amount, master leasor is your tenant, and is also required to pay for one hundred (100%) percent of the expenses of operating, maintaining and leasing the Unit during the lease term.
These additional payments will continue for the whole two year or three year term, depending on the program you select. These additional payments include:
(i) 100% of property taxes paid when due for two or three full years,
(ii) 100% of homeowners association fees paid when due for two or three full years,
(iii) 100% of management fees paid when due for two or three full years,
(iv) 100% of leasing and maintenance costs for two or three full years,
(v) 100% of all utilities (electric, gas, water and sewer) paid when due for two or three full years,
(vi) 100% of cable television paid when due for two or three full years. These payments are not partial, limited contributions, but one hundred (100%) percent of the costs of your real estate taxes, homeowner’s association fees, management expenses, leasing and maintenance costs and utilities and cable expenses.
- 100% of home owner’s association payments for two or three full years,
- 100% of property taxes paid for two or three full years,
- 100% of management, maintenance and leasing costs paid for two or three full years,
- 100% of all utilities paid for two or three full years, including electric (cooking, heat, hot water, lighting clothes dryer, washing machine, air conditioner), water, sewer and cable.
Finally, the Master Lease includes the “HOME WARRANTY PROGRAM”. The Home Warranty Program is your assurance that if your condominium unit should need any repairs or replacements of any type or nature (exclusive of the Home Owner’s Association responsibility) during the term of your two or three year Master Lease, we will pay for the repair or replacement without any cost to you.
Of course the master leasor rents the unit and collects and keeps the rent for the two or three year term, but we take care of leasing the Unit, all tenant administration and all maintenance and repairs during the term of our Lease.
PURCHASE, FINANCING & INCENTIVES
ALL CLOSING COSTS PAID IN FULL:
100% of Buyer’s Closing Costs are paid in full at closing*
ALL TRANSFER TAXES PAID IN FULL:
100% of buyer’s transfer taxes are paid in full at closing*.
ALL TITLE INSURANCE AND LEGAL FEES FOR THE TITLE COMPANY PAID IN FULL:
100% of buyer’s title insurance premium and title costs are paid in full at closing*.
ALL CONDOMINIUM OWNERS CAPITAL RESERVE PAID IN FULL:
100% of buyer’s mandatory capital reserve payments to the condominium association, are paid at closing*.
ALL MORTGAGE RECORDING COSTS, TAX STAMPS AND DOCUMENT PREPARATION PAID IN FULL:
100% of buyer’s mortgage costs (including lender’s legal fees) and recording taxes paid in full at closing*.
NO POINTS PAYABLE FOR THE MORTGAGE:
All points for Buyer’s mortgage, waived by the lender*.
MASTER LEASE TERM:
Both the Standard Master Lease Program and the Extended Master Lease Program begin on the first day of the second full month after closing and continue for either twenty-four consecutive months or thirty-six consecutive months respectively. The decision to join the Master Lease program may be made at any time after the purchase and extend through the last day of the 36th month after closing. However, once we have paid the closing costs for a Buyer’s purchase, the option to enter into any lease term longer than twenty-four (24) months from the closing date is no longer available.
MASTER LEASE - HOME WARRANTY PROGRAM:
Our HOME WARRANTY PROGRAM is your assurance that if your condominium unit should need any repairs or replacements of any type or nature (exclusive of the Home Owner’s Association responsibility) during the term of your two or three year Master Lease, we will pay for the repair or replacement without any cost to you.
RENTAL INCOME:
During the Master Lease Term, we collect and keep the Unit’s rental income and hold all deposits from our tenant. However, we pay for leasing the Unit; all tenant administration, advertising and all maintenance and repairs for the tenant, during our Lease term.
**FINANCING PLANS:
Buyers for investment may finance up to 100% of the total purchase price under the following guidelines:
- Mortgage financing is currently available for ninety to ninety-five percent of the total purchase price,
- Home Equity financing available after closing, is available to bring the total mortgage loans to 100% of the purchase price,
- No points are payable,
- Interest rates for loans to investors are determined by the market.
- Payment terms may require payments of interest only, for the first two or three years***,
Payment terms may require a two year prohibition on pre-payment or a pre-payment penalty****
Buyers of primary residences and second homes may finance up to 100% of the total purchase under the following guidelines:
- Mortgage financing is currently available to ninety-five percent of the total purchase price,
- Home Equity financing may be available, to bring the total mortgage loans to 100% of the purchase price,
- No points are payable,
- Interest rates for loans to primary residence and second home buyers, are determined by the market
- Payment terms may require payments of interest only, for the first two or three years***,
- Payment terms may require a two year prohibition on pre-payment or pre-payment penalty****
*PURCHASE, FINANCING AND INCENTIVES:
The terms and conditions of purchase and incentives are determined exclusively by the
Seller. The terms of financing are determined by the seller’s “preferred” lenders and may be limited by the Seller. Closings costs are paid by the Seller for all Buyers executing a two year Master Lease. Buyers who select a three year Master Lease Program, pay all closing costs.
**CREDIT QUALITY:
The terms and conditions of the financing plans available to Investors, second home buyers and primary residence buyers, are heavily dependant on the quality of the buyer’s credit and a down payment, if any. The lender makes all final determinations for each loan.
***PAYMENT TERMS – INTEREST ONLY:
Interest only, for at least the first two or three years.
****PAYMENT TERMS – NO PRE-PAYMENT & PRE-PAYMENT PENALTY:
Currently in negotiation with the lenders, but will be mandatory for either no pre-payment or
a pre-payment penalty for at least two years.
This is the most hassle free, zero down, zero closing costs turnkey investment opportunity out there.
Learn More About The Most Hassle Free Real Estate Investments
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