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Exit Strategy: Realising Your Profit

1. Buy And Hold To Generate Large Passive Income = Retire On The Income

With large rental yields of up to 25%, you could easily earn back the entire purchase price in less than 42 months! This means that you would be looking at pure profit on a monthly basis.

Assuming a rental income of approximately 510 a month, you would be earning a gross rental of 6,120 per year.

Now let’s say you have 4 properties, this gives you just under 25,000 a year! That’s more than most people earn in their jobs and a large enough income for most people to retire on for only just under 98,000  all in.

2. Lease Option Buy Back

This is where the tenant buys from the investor after 1 year to 18 months. This programme works as follows:

Investor buys property at say 24,500 (refurbished, with tenant in place).

Tenant pays rent to investor of which up to 95% is guaranteed by the US Government for $775 (510) per month.

After 18 months, the tenant offers to exercise his / her option to purchase (tenant is assisted by the management company to obtain a mortgage) through several avenues of credit counsellors and also through traditional finance institutions.

Investor agrees to sell at                   42,700

Therefore, investor’s investment:
Paid: To buy property outright            24,500 
Sold at (18 months later)                   42,700
Profit:                                              18,200
Plus rental received over 18 months:  9,180
Net potential profit over 18 months:    27,380

18 payments of $775 (510) = $13,950 (9,180) Therefore, on initial investment of  24,500  , the return on investment equals  37%. 

3. Flipping

Also there is the conventional way of putting the property out for resale and when you do consider the option to sell on, we will certainly be offering a service, whereby our American partners would undertake to do this for you. .