Step 1 – Identify Your Resources
The purpose of this first step is to outline a game plan for applying and leveraging your resources
Identify Existing Resources
Most people are unaware of their assets and resources that can be leveraged to produce greater income and net worth. These assets lay dormant and unutilized, resulting in a failure to act and lost opportunity costs. For some people, these assets may be enough to create a stable retirement in just a few years. You might be surprised by what these hidden assets are.
Apply the Principles of Leverage
You know it’s all about leverage.
One of the beauties of our buy, fix & hold model is that you get cash flow throughout the entire period of the process, and you get the opportunity for bigger returns in the future.
Step 2 – Locating the Property
We are very particular about the properties that we purchase.
Our proven system dictates that we target single family homes in need of only minor repairs, with a minimum of three bedrooms and two baths, preferably no less than 1500 square feet, in good neighborhoods, with a low vacancy rate, and a target equity after repairs of 15%.
Since we have our own real estate brokerage, property management, and remodeling teams in-house, the process becomes very smooth in its nature. No heavy lifting for you the investor.
We implement high tech strategies to search and locate only the best deals.
We know where to look, and how to react quickly when we find these great deals.
We need to react quickly when we find these great deals, because many of them only last a few hours.
Step 3 – Acquiring the Property
You Purchase a Property Using Maximum Leverage
In step 1 we identified our resources. In step 2 we located the property. Now, we are ready for step 3, and that is the acquisition of the property. NLPI uses a time tested formula to ensure that the properties we choose will result in great buys for ALL our investors. This formula was designed to assist the average working class person to get involved in real estate investing. It allows for maximum leverage and one of the best ROI’s available in real estate today. We have developed relationships with lending institutions, title agencies, and other real estate professionals to ensure that the process runs as smooth as humanly possible. Your success during this phase is determined by three primary factors: 1) using the right broker, 2) selecting the right loans, and 3) managing your debt-to-income ratio. And, if you’re unable to secure traditional financing for credit reasons, there are still options available.
Use a Lender that Will Allow You to Maximize Your Buying Power
Having the ability to acquire as many investments as possible is the key to building long term wealth through real estate investing. The key is to find the right lender, with specialized loans, that allow you to capitalize on the best cash flows and overall profits for your portfolio. We have such lenders in our database.
Step 4 – Renovation
Our In House Renovation Team Goes to Work
Once an investor has chosen a property, the next step is to go through the renovation process.
As we mentioned previously, we try to select newer properties that have very little deferred maintenance, and need minimum amounts of renovation such as paint, carpet, some light landscaping and a deep cleaning. However, we have the renovation team in place should an investor chose to purchase a property in need of substantial repairs.
Step 5 – Marketing
We have Our Own Internet Marketing Firm
We do not wait for your property to be renovated before we start marketing to Lease Option tenants. Our company Megasite Creations is a full service website SEO and Internet marketing firm that is called into action on every property we purchase for our investors.
Through sophisticated and sometimes proprietary measures, we are driving traffic to our sites through a series of websites, back links, blogs, and other SEO techniques. All traffic is geared to find Lease Option candidates for our investors’ properties.
With hundreds of potential tenants in each and every month, we often lease these properties out during their renovation stage.
Our on-line marketing strategy very much sets us apart from others out there.
Step 6 – Leasing the Property
Our Lease Option Contracts Work for All Parties Involved
A lease option gives renters the opportunity to purchase a home within a specified period of time and if certain conditions are met. They provide a path to home ownership for the renters, while allowing for higher lease payments for the investor.
Lease options have been misused by investors in the past. They are often designed to allow the investor to:
- Collect Large, Non-Refundable Option Fees
- Force tenants out of their homes when they are unable to exercise their options
Our Lease Option contracts are written with more compassion, with an end goal in mind for the tenant to be in the position to purchase the homes if he or she so chooses.
Our contracts were drafted to create a more equitable arrangement between investors and tenants. It’s a real Win-Win for all parties involved.
There are Many Benefits to the Investor:
- You receive a higher monthly payment as compared to a straight rental contract.
- You receive a larger down payment (“option consideration”) up front.
- You eliminate the need for excessive property management fees
- You eliminate repair costs. The Lessee pays those.
- You can sell the property for full market value at some point in the future.
- The increased monthly lease payment lowers your debt-to-income ratio, which helps you buy more properties.
- If the tenant buys the property, you will save the realtor commission (6% in most cases).
Step 7 – Re-Invest
Re-Invest for Maximum Leverage
Most of our investors are repeat investors. Our model is to have an investor for life. It’s important that you understand what your financial goals are, and for you to identify what your next investment objectives are.