Free Report

Free Real Estate Investor Special Report

 

The owners of Archway Homes have been real estate investors for well over a decade and know how to make money – for themselves and for others.

 

This report is going to outline two ways for you to make money in real estate.  Both are very lucrative.  Both can give the investor a consistent rate of return.  Both can give the investor a monthly income and a large pay day in the future.

 

How to make money in real estate #1:

Buy rental properties.
Archway Homes has numerous properties that could be purchased for rental properties.  Some may need a little TLC, some are ready for renters.  (Many of the homes we have for sale already have established renters in them!)  Archway buy properties every month and have an ever changing inventory.  If you let them know what size property you would like, the area of town, and the amount you are wanting to invest; they will use their marketing machine to find those for you.  Click here for the real estate investor form.

 

The pros to buying rental properties:

 

 

  • Monthly income from rent
  • You have a solid investment.  It is tangible – you can drive by it.
  • Proven wealth building system
  • A great inheritance to leave your loved ones.

The cons to buying rental properties:

 

  • The three T’s:  Tenants, toilets, and trash
  • You are on-call for repairs or pay someone else to be.
  • Vacancies
  • Tenants rarely leave the property as nice as they entered.
  • Taxes and insurance

 

The end of this report will compare the two ways to make money in real estate so keep reading!

 

How to make money in real estate #2:
Become a private investor for Archway Homes.
They buy properties and make money doing so.  Sometimes they use private investors who lend them cash at an interest rate of 6%-9% for a low Loan to Value loan.  They can pay the investor a monthly dividend or let their money accrue and continue to work for the investor.  Investor’s choice!  If you are interested to see how your money can make you much more money, click here to fill out a Private Investor Form.

 

The pros to being a private investor:

 

  • Monthly/Quarterly income from dividends
  • The interest rate is solid and consistent
  • You have a solid investment.  It is tangible – you can drive by it.
  • You don’t have the three T’s.
  • Proven wealth building system
  • A great inheritance to leave your loved ones.

 

The cons to being a private investor:

 

  • Friends and family will bug you about why you are so pleased with your investments.
  • Your spouse will want to go out more often, because you aren’t stuck at the rental fixing the backed up plumbing again.

(Okay, I made both of those up, because I couldn’t think of anything!)

 

 

Both of these are excellent ways to make money.  Both have their upsides and both are GREAT investment strategies.  Archway Homes can help you either way.
Let’s compare and contrast the two models below.  To make the comparison equal, the assumption is that the investor has $50,000 cash to invest.

 

Owning Rentals:

Buy a 3 bedroom, 1 bath property for $120,000 that needs $15,000 in repair.  Put $30,000 down and use the rest of the cash for repairs and holding costs.

Monthly rent is $850/mo.

Vacancy is 25% (Banks use 25% vacancy rate when figuring loans.)

Hold the property for 15 years before selling for $180,000 (Using 2-3% annual appreciation.)

 

Expenses:

$30,000 for purchase

$20,000 for repairs and holding costs

$97,200 for monthly mortgage payments over 15 years (6%, 30 year loan)

$ 9,000 for insurance over 15 years ($600/year avg)

$30,000 for taxes (averaged $2000/yr for 15 years)

$186,200  Total investment

 

Income:

$114,750 in rental income (25 % vacancy rate calculated)

$118,305 income from sale:  $180,000 Sales price – $61,695 mortgage balance

$233,055  Total return

 

Gross profit = $46,855:  $233,055 income – $186,200 expenses

 

Note:  The increase in rent and the repairs required between renters or during a lease were not calculated and assumed to be “a wash”.

 

Being a private investor with Archway Homes:

Invest $50,000 in a property with Archway Homes.

Interest rate on first mortgage of 6%.

 

Total investment:  $50,000

Income:

$45,000 in monthly dividends ($3500/year – 7% for 15 years)

 

Now you are saying that the investments look about the same.  Right?!?

But wait . . . the first model had a gross profit of $46,855.  The second model had an income of $45,000.  After the property is sold, the investor on the second model gets their $50,000 back!

 

Gross profit:  $95,000!!

 

Now this report and comparison was not written for all who read it to become a Private Investor for Archway Homes.  Some real estate investors have intentions of holding their properties for much longer than 15 years.  Many can do the repairs themselves and have renters who never leave.

These calculations are an example of a similar 15 year investment of $50,000.   Again, both are great investment models.  The question now is not if you want to make money in real estate, but how?

Call us at Archway Homes if you have $20,000 or $500,000 to invest and we can use our expertise and experience to help you make the most of your money.