A high yield investment opportunity in real estate can yield as high as 100 percent + total return on investment. There are different ways in which you can invest in real estate property: you can build from scratch and sell or rent your property, buy an old home for sale and fix it up to increase its value; invest in commercial property; etc. The key is to find the right method of investment. If you're looking for a real high yield investment opportunity, then you should consider investing in foreclosed property.
There are companies that purchase foreclosed property from banks to sell it people on installments. One such company is First Fidelity Homes, a private real estate firm that has its headquarters in New Jersey. The company offers foreclosed homes to investors at considerably reduced value.
The value of the house is estimated after considering several factors: the condition of the house, average rents in the locality, any back taxes, and estimated value of the home.
After securing the property, the company begins the marketing process. The price of the property is set as such that owning the home costs less than renting a similar home in the locality. The monthly payment that the buyer pays on the home is usually 20% less compared to existing market rents. This method of setting price for the homes enables the company to move houses at a very quick pace.
When First Fidelity Homes receives a buyers' applications, it analyzes them to ensure that the income will be enough for the monthly payment and other expenses such as home insurance, realty taxes, utilities and maintenance. The company also takes into account the amount of funds that buyers have to fix up the property.
Once a buyer qualifies for this high yield investment opportunity, Fist Fidelity Homes will sign a land contract agreement with him/her. The agreement usually requires buyers to pay the total price over a period of 15 years at 10% interest rate.
To clarify any misconceptions about a land contract, it's an agreement in which a seller finances the buyer and the buyer pays for the property in installments. After the entire purchase price is paid, the buyer gets the deed of the property from the owner. Buyers have the right to keep possession of the property during the period that they are making the payments in installments.
With this system you as the investor are providing the initial structure that enables the person paying the monthly installments to have a home via the land contract agreement. From that point, you will get the same high return on investment that banks and other traditional lenders get.
First Fidelity Homes provides you a high yield investment opportunity to invest in already occupied properties that provide a minimum of 16% return each year.
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