Monday, April 1, 2013

When it comes to real estate investing, it's a question of “Simple Math”

There are a lot of real estate investment funds that have fancy brochures to entice you as an investor to invest with them. They all look very professional. Big fancy offices, gold embossed brochures. It all seems very appealing. Here's the problem: Most of them can't deliver in what they promise. The reason being that they are more marketing machines then they are developers. In any real estate development the profit margins are somewhere between 40-50%. Some of these real estate companies have huge overheads to pay out. The figures look something like this: Payout to investor: 15%-20% Finder's fee (for someone who brings an investor to them): 5%-10% Marketing expenses: 15%-20% So as you can see, even on the low side these firms work with 35% in expenses. And on the high side they are at 50%. So where is their profit. They are not doing this for free. The problem is, most end up being Ponzi schemes. They can only pay out to the investors as long as there is new money coming into the company. Once the inflow of new money stops, so does the payout to investors. There are hundreds of companies that end up closing their doors, Pemberton International Eldon International Willow International Allied Investment Abacus Investment This small list is a drop in the bucket, but over a two year period, starting in 2009, over 300 victims lost over 3 million pounds to these companies. The two men involved are in prison, but that does nothing to relieve the financial loss of the victims. As a real estate investor, you have to work your own deal. Stop trying to get money quick and easy. It doesn't exist. You work hard for your money. Make sure that when you get into a deal, you have control. Don't put your life in the hands of other people. The reason that we have been able to be very successful over the past 8 years is because we do things different. We reverse the payout numbers. Our investors do their own deals. We package small to medium sized real estate projects for each client. The 40% to 50% profit is theirs. We take a small percentage for managing and overseeing the deal. This has worked very well for us over the last 8 years. We are not a large firm. We have a handful of clients that have worked with us, and that continue to work with us in various projects. If you would like to learn more about how we work, please feel free to contact us:

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