Long Term Buy and Hold
This is your traditional long term buy and hold where the investor is buying a recently rehabbed house (turnkey).
- Help Keep My Money, LLC is responsible providing property management including identifying a tenant using the typical screening tools (income is 3 times monthly rent and debt to income is less than 50%).
- Help Keep My Money ,LLC enters into a 1-year lease with two (2) 1-year options with built in price increases (2% – 3%).
- Help Keep My Money, LLC collects first month rent and a deposit equal to one month of rent.
- The first month’s rent goes to Help Keep My Money, LLC for tenant acquisition costs. The deposit goes into a non-interest bearing savings account.
- All subsequent rents are collected by Help Keep My Money, LLC, which pays all costs associated with the property (1st and 2nd mortgage payments, property tax and insurance costs or reserves, vacancy and maintenance/capex costs or reserves, property management fees) and then deposits remaining amount into Investor’s account.
- Average Purchase Price: $40,000 – $300,000 (varies significantly by State and market)
- Cash Required by Investor: 15% of purchase price
- Profit Split: Investor receives 100% of all after tax cash flow profit up to 10% of investment amount. All profit above that amount is split 50/50 between the investor and Help Keep My Money, LLC.
- Investor receives 100% of all sale profit up to 25% of investment amount. All profit above that amount is split 50/50 between the investor and Help Keep My Money, LLC.
- Projected Annual Cash-on-Cash Net Rental Income Return On Investment (ROI): 10% – 30%
- Projected Cash-on-Cash Return On Investment (ROI) from Sale: 25% – 400%
- Length of Investment: 1 – 30 years
- 1st Mortgage Loan Details: Assumable loan at less than 50% LTV of purchase price, 4% – 10% interest amortized 30-year fixed (or adjustable) loan with 0 points or processing/origination costs.
- Closing Costs: 1% management fee, title insurance transfers with loans, escrow fees and miscellaneous fees all vary by State and market. There are no prepaid costs for property taxes, property insurance and interest on the 1st mortgage.
- 2nd Mortgage Loan Details: Assumable loan is less than 85% LTV of the purchase price. 12% interest-only 30-year fixed loan with 0 points upfront for processing and origination costs. Includes a Rent Assignment Rider that allows Help Keep My Money, LLC (on behalf of the 2nd mortgage lender) to collect rents directly from the tenant to pay all costs associated with the property.
- Investor upfront out of pocket costs: None
- Investor costs paid through escrow: Assumption costs equal flip investor’s investment amount and profit. Investor is also required to place reserves and holding costs (3 months’ worth of PITI payments) into a joint account with Help Keep My Money, LLC that requires both parties’ signatures to withdraw funds.
- Property Management: Help Keep My Money, LLC receives a standard monthly fee of 10% of the monthly rent for property management. We oversee the weekly landscaping maintenance (which doubles as a weekly physical inspection of the property and monitoring of the water usage), quarterly interior inspections for excessive wear and tear (which will be a violation of the lease agreement and justification for termination), and quarterly and annual maintenance of the properties systems. We are responsible for the direct collection of all rents from the tenant, and the subsequent payment of all costs (1st and 2nd mortgages, property taxes and insurance, landscape and system maintenance costs, vacancy and maintenance/capex costs or reserves, and the property management fee). After all costs have been paid, the remaining net income is given to the investor.
Additional Investment Opportunities
Help Keep My Money LLC offers three additional real estate investment opportunities based on your risk tolerance and based on your timeframe for receiving your return:
- Debt Investment: Promissory Note in the 1st position
- Debt Investment: Promissory Note in the 2nd position
- Equity Investment: Flip