The Investment Process

Common Partnership Structure

A) Whether you are investing in a rental property with as few as five units or as many as 100, the structure of the investment process remains the same. The deal is split into two main parts: Acquisition & Management (see part B) and Equity Partners (see part C). The normal split between these two is 50/50; however, exceptions can be made depending on the requirements of the Equity Partners.

B) Acquisition & Management - This step is made up of two components:

b1) The first is acquisition of the investment, which entails finding the property, calculating the returns, and finding equity partners to take part in that investment.

b2) After the investment is acquired, it must be continuously supervised to ensure proper management of the rental property in question. Monthly and/or quarterly statements and checks are sent to the equity partners and managers, to help them keep track of their investment.

C) Equity Partners - The investment deal is split between those individuals that bring equity and/or credit to the investment. Each partner will split the entire Equity Partners portion of the deal depending on how much equity is brought by each individual. Technically, there is no limit to the number of equity partners*, however we strive for as little number of partners as possible.

*We are a fully SEC compliant business. The number of equity partners in the partnership, will determine if a Reg-D filling will occur.

Our Business

Apartment Building

We look to acquire, maintain, and eventually sell apartment complexes (normally 10 units and above) in stable or appreciating markets with strong cash-out positions. Our holding time varies, depending on the current market cycle in each specific area. Currently, we concentrate our efforts on Class B properties located in Class B or Class A areas.

If you want to invest into mutli-family apartments...

We are fully SEC compliant, and prefer to work with accredited investors. While there may be exceptions to this rule, most of our investors are accredited and must meet at least one of the following requirements:

• $1 million or more in assets, not including the value of their primary residence
• $200k in personal annual income
• $300k in joint-spousal annual income

Potential investors are not obligated to have any real estate investing experience, and they may decide for themselves, within reason, how much or how little they can invest in a given deal.

Single Family / Duplex houses

We also buy, fix, and sell single family and/or duplexes in the Bergen County, NJ area. We buy the frumpy, run-down houses on the block--the frumpier, the better--and fix them, thereby bringing up the value of both the building and neighborhood.

Tax Liens

Tax liens are a non-traditional way of investing in real estate.

When a property owner fails to pay their property tax, the owner’s municipality still must pay for the various services funded by those taxes, such as sanitation, police department, public school system, etc. In order to cover these costs, the municipality will put the unpaid amount up as a tax lien, which can then be auctioned off to potential investors.

As buyers of a tax lien, we investors now have rights to the property that supersede those of the owner’s first lender (if any), as well as any secondary lien holders. If the original owner desires to sell the property, he will need to pay the investor to have the lien released. If the law permits, a delinquent property owner may also be required to pay interest and any additional fees to the buyer, as well.

The purchase of the tax lien is followed by a set amount of time known as the redemption period, in which the property owner must pay off the tax lien. If the original owner is unwilling or unable to pay the lien amount, the lien holder is allowed to foreclose on the property. Following the completion of the foreclosure, the lien holder will receive the title to property.

We as investors can use tax liens in two ways:

1. Liens bring about an excellent ROI. In New Jersey, a lien holder can charge up to 18% interest on the tax lien amount.
2. We can foreclose on the property, obtain the title to the property, and resell the property for a large gain.

Either way, tax liens are a very safe form of investment with solid returns.

If you wish to invest into tax liens with us, we would be happy to form a partnership with you. Many tax liens are available, and we can select properties that will best meet your needs.