San Antonio, Texas Investment, > 20% BMW, Cashflow Positive, Long Term Resource

Hi,

I have been dealing with my San Antonio, Texas contact for the past 2 years now and in that time I have purchased 6 properties myself through this guy (Brian).

Texas if it seceded from the US (as it has the right to do in the US constitution) would be the 13th largest economy in the world! The Texaplex region encompassing the triangular region of Dallas, Houston, San Antonio and Austin holds 80% of the population of Texas. Of the top 10 most populous cities in USA, 3 are in Texas. San Antonio itself is the 8th largest city in the USA. By the year 2030 14 million more residents will call the Texaplex region their home.

When people talk about the US going through a downturn in property the regions they are referring to are principally the East and West Coast regions that rose so high in the property bubble i.e. California, New York, Nevada etc. Texas never soared to the giddy heights that these aforementioned regions reached so largely the state has been insulated from much of the downturn in property. Real Estate is still cheap in Texas and because of the media hype the bargains are everywhere. This is not to say that you don't need to invest with caution but you are unlikely to get burned like in other places I could name (Rochester, Buffalo and Detroit amongst others). I'm sure many Aussies have been burnt in Rochester and Buffalo in recent times!

This is a website to go to, to see a video on the Texaplex – http://www.texaplex.com

The reason for this post is to introduce myslef and also to detail a current deal that I have through my business contact in San Antonio. I am looking to build a mailing list of interested investors in Australia and the UK that I will regularly send deals to. I am then avaialbale for any queries and also to discuss things like how to set up a bank account in the US (you have to fly there to do this), which bank to use (to avoid the possibility of the bank folding in the future), the structure I use for my investments, how I pay tax etc. My email address is: [email protected]

Here is the latest deal I have from Brian (please email me at – [email protected] if interested in this or you are wanting to get on my mailing list for future deals, or simply if you have any questions and want to chat):

• City Property Located in: San Antonio Texas.
• Style of Property:  3 Bed, 2 Bath, House – 1900sqft internal area.
• Purchase Price of Property: US$91,000
• Value of Property: US$120,000 – US$125,000
• How value of Property Assessed: Comparitive Sales in area in past 12 months (i.e. recent data).
• Total Equity Built into deal: US$29,000 – US$34,000
• Below Market Value By: 24% – 27%
• Taking Over Existing Loan: Yes
• Existing Loan Interest Rate: 7.75% fixed
• Monthly Payment on Loan: US$775
• Monthly Payment Incl. Principal, Interest, Council Tax, & Insurance: Yes
• Monthly Rental Range Achievable: US$900 – US$950
• Investment required: US$19,000 
• Annual Net Cash on Cash Return $: US$1,500 – US$2,100
• Annual Net Cash on Cash Return %: 7.9% – 11.1% 
• Alternative Strategy No. 1: Rent-to-own sale (we will find rent-to-own buyer for no extra cost to you)
• How rent to own works in US: Buyer pays deposit to you (~US$1,500) for right to purchase property at discounted price within set time e.g. 0-6mths (US$110,000), 6-12mths (US$114,000), 13-18mths (US$118,000), 18mths+ buyer forfeits deposit and can either re-apply or you can get new rent to own purchasor and re-continue the process. In the meantime rent to own buyer pays for all maintenance on property and you have recived back US$1,500 of your US$19,000 invested increasing your Net Cash on Cash % return to a very healthy: 8.6% – 12%.
• Alternative Strategy No. 2: Small cosmetic renovation and flip back on market for a quick sale at say US$110K eventually selling for US$105K.
• How Strategy 2 works: Spend extra US$3,000 – US$5,000 (this is approx figure and of course would require assessment of what needs doing!), then sell for US$105K netting a quick dollar profit of US$13K-US$11K on US$22K-US$24K invested i.e. 159% – 146% cash on cash return within approximately 4-6mths.
• Alternative Strategy No. 3: Sell to purchasor who needs to improve their credit slightly over next 6-12 months in order to qualify for loan (depends on finding suitable purchasor).
• How Strategy 3 works: We advertise for a buyer who is up to 8 points below the required credit score in order to apply for a bank loan on the property e.g. at 617 and need score of 620 to get loan with bank (I have successfully used this strategy on 2 out of 6 of the deals I have through Brian!). The buyer signs an agreement and pays a deposit to you (~US$1,500) and our expert credit team works with them over the next 6 months to get their credit score up to the required 620 so they can apply for the loan. In the meantime they pay the market rent to you and then when their score is good enough they apply for the loan and cash you out of the deal. With this sale you won't get the full US$120K-US$125K value of the house of course as you have to give the purchasor an incentive to buy. You may end up with US$110K or above netting you US$21K profit on the original US$19K you put in within approximately 12 months i.e. 211% cash on cash return! You can then use the profit generated to invest in more deals with us at an effective infinite rate of return!

Please let me know if you want in on this deal ASAP as they do go very quickly considering Brian also advertises these deals in the US himself – my email address once again is: [email protected] . As stated before if you just want a chat about anything to do with US investing please drop me an email and I will be happy to answer any queries you have.

Kind Regards

Jamie Sukroo
[email protected]