Friday, February 27, 2009

Model Home Lease Back and Cash Flow

What if you could invest in Residential Real Estate, but treat it like a commercial investment?

The Model Home Lease Back.

The builder will keep your home looking like the Flagship of the neighborhood. People will walk through daily, but the systems and appliances are going to be hardly used. It's like buying a brand new car and keeping it in the garage.

It's similar to commercial investments: because the tenant is a company, rather than a family. They pay rent plus utilities and taxes, unlike residential. They are a built in tenant, and handle their own maintenance, no need for property management.

Why would the builder sell the model? A builder needs to raise capital in today's market due to tight credit limits. Building a spec home takes time and money. But a model is standing inventory that also needs to be sold at some point. This makes the most financial sense. They raise money, continue building, and rent back until they are finished with the development.

In the meantime you receive huge positive cash flow, on the nicest house in the neighborhood. No concern of vacancies or pets, and earn about 12% return on your downpayment and costs.

See below for our latest opportunities located in the city that has the largest job growth in the nation... Dallas-Fort Worth. Would you believe that this area also has one of the highest population growth rankings in US as well?

Jobs = People

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