You can secure your retirement with real estate investing.
The ‘safeness’ of your retirement is contingent on what is securing your investment. We buy houses, but not just any house. We look at each market and find what is selling. We traditionally buy three bedroom, two bath houses. These are typically the fastest to move when selling and they get top dollar.
When investing in real estate your funds are secured by the actual value of the house. Not the value of tomorrow or even the tax value, but the value of the house today. We diligently look at comparison sales and really tie down what is selling in each market.
Based on our research, we only buy a house when there is equity included. Equity is how much money is valued on the house’s fair market value compared to the outstanding balance of the loans against it.
To give a real world example:
A house has a fair market value of $100K. We know that it will cost 20K to fix it up. That means, the house is valued at $80K. We would buy that house for less than $60K in order to secure our private investors ‘safety.’
That may seem like a real steal of a deal, but keep in mind these houses are ‘distressed’ and we will have to put time, effort and money in order to get them up to the fair market value specific to the demographics of each specific area.
There is always risk in any investments. Our goal is to minimize risk so our home investors and private money lenders are protected going into the investment.
On top of buying low and thorough market research, the private lender is listed on the insurance. In other words, if anything happened to a house while you were funding the deal, you would be protected. Ask your mutual fund broker if they have you insured in case something happens to your investment!
Here at Black Brick Investing we would love to show you specific ways that your investment money is kept safer with our system. Give us a call today at 469-626-8224.