Investors
There are many ways to make money while investing in real estate and we have a variety of investment opportunities for the savvy real estate investor. Our Flagship investment vehicle is Pride of Austin High Yield Fund 1, a mortgage pool security, managed by Pride of Austin Capital Partners, LLC. Other real estate investment opportunities we offer are; new construction spec homes, rehabilitation projects, REO and foreclosed properties, 1 to 4 family rental properties, commercial income producing properties, and, model home leaseback investments.
1. MORTGAGE POOL
Pride of Austin High Yield Fund I, LLC is a Texas limited liability company located at Frost Bank Building, 401 Congress, Suite 1540, Austin, Texas 78701. The LLC is a mortgage pool security and was formed for the primary purpose of making and arranging 1 to 4 family residential (including mixed-use, and covered loans), commercial, and construction loans to the general public, acquiring existing loans, and selling loans, all of which are or will be secured by liens, deeds of trust and mortgages on real estate or personal property throughout the United States. The fund is limited to lending no more than 20% of its capital outside the State of Texas. Please read postings on the Fund News tab for information about current loans or current yields being earned.
An investor in this fund must meet certain eligibility requirements to become a Purchaser of a membership in the FUND and return a signed Investor Questionnaire, which can be found here. This Investor Questionnaire will be used by the Manager to determine whether Purchaser qualifies as an “Accredited Investor” and whether Purchaser has sufficient investment sophistication and ability to take financial risk to meet the standards for availability of the private offering exemption from the registration requirements of the Securities Act of 1933, as amended (the “Act”), and any other applicable securities law. All capitalized terms used herein, but not defined herein, shall have the meanings ascribed to them in the Memorandum.
2. NEW CONSTRUCTION SPEC HOMES
Austin is a strong market and new construction in the central core of Austin is enjoying a steady market. There are almost no vacant lots in the central core available so builders are buying older homes that are often in disrepair but that are located on desirable lots and scraping off the old and building new. Pride of Austin Homes, LLC will partner up with an investor and build a home to be sold upon completion. The builder works on a split of the net profits with the investor after the project is sold to the end buyer. The percentage of the split of profits is determined by how much cash the investor contributes to the transaction and how much cash Pride of Austin Homes, LLC contributes to the transaction at the closing table for the construction loan. There are some lots where Pride of Austin Homes, LLC can build two units for sale increasing the profitability of the project for the investor. Each property is taken in a case-by-case basis. We can locate the properties for you, help you arrange financing for the acquisition and construction, build the new home(s) and then place the property for sale and market it for you.
3. REHABILITATION PROJECTS
Everyone who watches a Flip This House program on TV gets the idea that a rehab project is fast money. It is true that a savvy investor can make good money rehabbing and flipping a property. One must be very careful about thinking that new flooring and a fresh coat of paint will add value to a home for an easy sale. This investment strategy takes a lot of energy and focus to be successful. An investor must study the market and determine what the market demands of that rehabbed property. Does the SF need to be increased? How much updating must be done? What is behind the sheetrock or wall board that might need to be addressed? Paint and floor covering cannot address what can’t be seen. There are many successful rehab stories. It just takes the right property to make it a success story. We can locate the properties for you, help you arrange financing for the acquisition, rehab the property if it is needed and then place the property for sale and market it for you.
4. REO AND FORECLOSED PROPERTIES
Purchasing REO’s and foreclosed properties and flipping them seems like a good investment but this strategy normally requires a lot of patience, research and cash. There are many downsides to purchasing a foreclosed property. There is often no way of knowing the damage to the home until after you gain entrance into the home. There may be unpaid property tax liens or mechanics liens that are not disclosed by the trustee handling the sale. Once you purchase a property you would inherit those liens as well. If you feel that this type of investment is a viable option for you we have a team of experienced professionals to help you through this process. We can locate the properties for you, help you arrange financing for the acquisition, rehab the property if it is needed and then place the property for sale and market it for you. We only handle REO and foreclosed properties in the Central Texas area.
5. INCOME PRODUCING PROPERTIES
Pride of Austin Realty, LLC will successfully locate rental properties that meet your investment strategy and handle the purchase transaction for you, but Pride of Austin Realty, LLC is not a property manager. Rental properties are not always income generators and there are times when an investor ends up having to spend more to repair damages by tenants than the investor has netted on the property. We do not encourage this type of investment to meet the goals of most investors. To be successful in rental property investments the investor needs to be a hands-on property manager or have a very strong property manager working for him or her. An investor needs to have cash reserves to cover rental income deficiencies as well. Financing is available through Pride of Austin Capital Partners.
6. MODEL HOME LEASE BACKS
Many builders will sell their model homes to investors when they start a new subdivision. They then use the model home for their sales center and lease it back from the investor for specific period of time. Normally, the lease requires the builder to pay a rental amount that exceeds the PITI of the mortgage as well as frequently paying the property taxes and, at the same time, add the investor as an additional insured on their liability policy during the term of the lease.
Builders maintain their model homes in pristine condition because having an attractive model home is what helps them sell homes in the subdivision. Therefore, when the lease is terminated the investor can sell the property as if it is a new home. Pride of Austin Realty, LLC has negotiated many model home leaseback transactions with area builders. Demand for these properties is extremely high. If you are considering this type of investment then you would need to be ready to make a purchase within days of a model home coming on the market.
Comments
I own a home valed at 240K and i owe 165K. I purchased it new 9 years ago. I had gone through some hardships earlier this year and had fallen behind on payments. I have since regained my career and am looking for an investor to buy my home and rsale it back to me. If this is something you can accomodate, please call me at 512-698-9645.
Sincerely,
Tony lewis
Tony,
We would not be able to make a loan on your home because your LTV is higher than our lending limits. We are limited to a 65% Loan to Value.
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