Do You Want To Participate In Houston’s Booming Housing Market With Little To No Money Out Of Pocket?
It is absolutely possible with your good credit and Houston Direct Capital's knowledge and purchase power, combined!
With capital and credit from smart people like you, Houston Directed Capital has immediate purchase power to buy property at a substantial savings, far below market value. We bypass traditional purchase practices and close our transactions quickly.
Our Credit Investors receive up to an INFINITE return on their investment because they are investing the use of their personal credit and with little to any actual dollars!
Imagine: Your good credit gets you into the rewarding field of real estate investments, with NO cash, NO long and difficult search for the ideal property, and NO worries about rehabbing, managing, or maintaining the property.
With Houston Directed Capital you invest your good credit and we do the rest!
It’s hard maintaining good credit. Wouldn’t it be nice to have that effort rewarded?
Credit investors can receive up to INFINITE rewards by using their good credit to capitalize on the many opportunities in real estate investing. Secured by the property and guided by our expertise, it’s safe and easy. You simply invest your good credit and we do the rest.
Why Should You Invest in Houston Affordable Housing?
Houston, TX has been named as one the most stable real estate markets in the country. Within this market is an opportunity to invest in inexpensive properties with above average rent to value ratios that have a constant demand whether the overall market is in an up or down cycle.
As real estate investors we also have the ability to revitalize neighborhoods by purchasing and rehabbing properties that may otherwise be uninhabitable, dangerous and a drain on the community. By taking on these projects we are responsible for putting these properties back on the tax rolls and more importantly providing clean, affordable housing for members of the community.
Through the Partnership Program, we have been able to create a true “win-win” partnership by allowing you, the private investor, to become a passive investor in affordable housing projects and receive a share of the profits, including monthly cash-flow and tax advantages! This has been a great investment opportunity for current partners because it allows them to invest their money in a stable, income producing asset that provides healthy rates of return while allowing them to focus on their profession and families and not time being spent as a ‘landlord’.
Meanwhile Houston Directed Capital does all of the work for you and you can sit back and earn returns that will double and triple what you can expect from a typical 401k. When we say that everything in the deals are done for you, with the exception of some forms (applications, closing documents, etc) that require your signatures, THE HOUSTON DIRECTED CAPITAL TEAM WILL DO ALL OF THE WORK FOR YOU! You simply claim one of the properties made available, and go back to spending your time on what is most rewarding to you. At this point you essentially own a business in which you are NOT on the Organizational Chart!
The Houston Directed Capital real estate business is a SYSTEM that will do the following for you….find unlimited number of undervalued investment opportunities…provide financing options…coordinate the rehab of the property after purchase…find and qualify good, long term tenants, provide property management to all of your homes…facilitate a sale of the property at the desired time…provide alternative investment opportunities to reinvest the proceeds via 1031 exchange to defer paying ANY taxes…and much, much more!
Here’s How The Partnership Program Works:
1. We locate, purchase, rehab and rent undervalued properties in the Houston Market (these properties are usually at discounts of 30% to 45% below the After Repaired Value)…
2. We assist you in obtaining financing, usually $0 down!
3. We manage the property for you. You will NOT be dealing with tenants…Sherwood Property Management will do this for you and send YOU your share of the rent checks each month after reserve has been reached for the house and mortgage has been paid…
4. Typically, we will keep the property as a rental for 2-5 years while earning a very nice monthly cash flow… PLUS building equity in the property each month. (The tenants will be making the payments… while you receive extra cash on top of that each month!)…
5. Lastly, we coordinate the sale of the property to realize the profits or reinvest the profits in a 1031 exchange and do more deals…
We oversee the ENTIRE process FOR YOU!
Step #1: In this example, a Houston Directed Capital private lender will be happy to provide the funds to purchase this house AND make the repairs because they provide loans up to 70% of the ARV to purchase this property. 65% of $100,000 (the ARV) is $65,000. So one of our lenders will loan $50,000 to purchase the property and $15,000 to fix it up. This is called a private money loan, and they are pretty easy to get because of the relationships we have with our lenders and because the lender has little risk here.
Another Financing Option is to purchase the property directly from your Self Directed IRA account and have your IRA fund all costs associated with the acquisition and repair.
The next step is to have Houston Directed Capital fix up the property for you (with the assistance of www.RentReadyContractors.com). The rehab can usually be completed within 20 to 45 days after you purchase the house.
Once the house is fixed up, you would then pay that off by refinancing the house into a long term conventional loan.
After refinancing, we will owe approximately $70,000 on a house that is worth $100,000!
Also, by this time, tenants will be in the property paying rent. A monthly payment on $70,000 will be somewhere around 1%, or $700 (this includes taxes, insurance, principal and interest). This house would rent for approx. $1000. So, positive monthly cash flow will be $300.
The tenant is now essentially paying the mortgage, PLUS putting an additional $300 per month into our business.
Let’s say this house appreciates in value at 3% per year (it’s happening here in Texas). In 5 years, it will be worth approx. $115,000 and we decide to sell it. Let’s say we sell it for $110,000 (a slightly lower than market price will sell faster), pay off the conventional loan that has a pay-off of $67,000 and we walk away with a gross of $43,000 in profits!!
Now let’s look at how much money we’ve made in 5 years on this ONE deal by renting it out:
Total Investment ($3,000 closing costs): -$3,000
Rental Income ($300 per mo. x 60 months): $18,000
Property Management Fees ($50 per month): -$3,000
Misc. Expenses and Repairs ($5,000): -$5,000
Checking Balance: $1,500
Gross Profits after Sale (/2): $51,500
Total Profit to You: $25,750!
As you can see, with the Partnership Program everything is in place for you… nice properties at deep discounts… offers accepted… properties evaluated… paperwork done… tenants in place (who pay you a monthly income)…and best of all, Little to no money out of pocket!
All this being said, real estate investing does come with some inherent risks and some deals don’t work out as nicely as projected. However, most do and many turn out even better than projected when they are held for the long-term. Houston Directed Capital encourages you to do your own due diligence before moving forward with this type of investment vehicle and make sure that this is a strategy that you will enjoy.
Additionally, the Houston Directed Capital values each of the private investors and partnerships that we are involved in and that TRUST is at the core of every relationship. But trust is something that is established over time with repeated actions that represent honesty, character and good decision making. Therefore, you are encouraged to contact some of the private investors that we work with to ask about their satisfaction with the investments made with us.
One of the added benefits of the Partnership Program is that we are rewarded by performance. We are NOT simply some ‘financial advisor’ that you are giving money to and hoping that it is invested wisely or a 401k that takes money out of your pocket every month. By our Partnership Agreement and entity structure, (typically an LLC) Houston Directed Capital will be paid by the performance of the investments created for you. Therefore we are always looking for ways to put together the most profitable deals, while looking for ways to save money, minimize expenses, maximize revenue, create monthly cash-flow and avoid liabilities every step of the way. We will only see profits when you see profits. So when you win, we win.
Lastly, we commend you for taking action to seek control of your financial freedom and thank you for your interest in partnering with us. We look forward to speaking with you soon.
To learn more about this opportunity or discuss using your credit to invest in affordable housing please call us or fill out the form below. We will respond to all requests for information as quickly as possible.
Houston Directed Capital
P.O. Box 10408
Houston, Texas 77206-0408