Does Creative Investment Interest You?


I just ran into something creative, if you have $40k you can invest and you would like rental / portfolio property PM me! Since we can't advertise that's all I am going to say!

If you have a mailing list / email list of rental / portfolio investors PM me and we’ll see if we can make you a couple of bucks!

You must be willing to sign an NDNC agreement and anyone you know will need to sign an NDNC also!

Escrow In / Escrow Out!


This is the overview:

$200,000 Fair Market Value. (FMV)
$40,000 Down on Lot - This will be a 1st Trust Deed note @ 5% with subordination clause when your escrow closes. (Potential 2nd to construction financing)
$160,000 New 1st Trust Deed at completion. You must qualify for this new 80% non owner occupied loan.
$4,000 Closing Cost 2% - Balance of interest earned on note paid by the developer!

$40,000 I will give you back to buy a 50% interest in the property with you! Records my interest as a tenant in common on title!

$0 Your actual cost to buy 50% of a brand new duplex! Revised on 5/15/16

$950 Fair Market Rents per unit!
$1900 Fair Market Gross Income
$190 Vacancy Factor 10% Adjustment
$1,710 Adjusted Gross Income
$171 Property Management Fee
$1,539 Gross Income
$854 Monthly Payment 30 year @ 5%
$100 Property Taxes
$100 Insurance
$75 Water / Sewer / Trash

$410 Positive Monthly Cash flow

This is a 10 year agreement from close of escrow!

In 10 years the:

$107,000 Estimated Trust Deed Balance
$16,800 Positive Cash Flow after Reserve Fund
$252,000 Estimated FMV in 10 years.
$1,200 Per Year Tax Incentives! ($12,000 over 10 years) Estimated


This is a lot of fun for me, it's nice to share an opportunity with other investors and provide a step in building your portfolio.

I keep going back and forth with the developer to negotiate terms and conditions. Since these are duplexes the time involved to build out a pair of unit’s on one lot is about the same as building and upgrading a single family home, except each lot is equivalent to two homes.

All it takes for you to get in and become my partner is $40k!

You can do this with a home equity line of credit, sale proceeds, from savings, with your self directed 401k / IRA or by refinancing or selling an existing property.

So what is the returns if you don’t have any money in the property but your get monthly cash flow, share in tax benefits, build equity, pay down the mortgage and don’t have a dime in the property at this time? I think it’s called infinite returns!

Now think about relaxed weekends, sitting by the pool with a margarita, spending time with the grandkids, knowing at least this property has no maintenance issues as no one is calling you for plugged toilets, leaky faucets or non working air conditioning systems! You don’t have management issues as you did not have to man a hot sweaty office until 5:30 waiting for your rent check, you did not have to show your units to 10 prospective tenants before finding a renter, you did not have to fill out all the paper work or have to run a Tenant check! You have no maintenance and no management hassles.

Now imagine this your investment matures, you come down the road 10 years, you know you want to exit? You don’t need a realtor, you don’t need to market and advertise and wait for a number of days on market to get that less than stellar offer, your out in 60 days with half of equity of appraised value, it’s that easy!

Now I know some of you like the hassles, headaches, exciting nights unplugging toilets, midnight calls from tenants and all the issues involved with that 10, 20, 30 or 50 year old property! I understand some of you like to put a bunch of cash in you’ll never get out and some of you just don’t feel investing is worth wild if you don’t put 30% down and lose money monthly, I understand, I really do!

But for those of you who are somewhat intrigued by doing nothing and making money, by investing a little cash short term for a long term investment with infinite returns, for a stress free project where your partner has been successfully making it happen for almost 40 years, and you have better things to do with $40k two or three years from now rather than letting it sit in a rental property! Like buying another property!


 I have reduced this offer from 80 unit's down to 30 and I currently have one commitment from one of my associates and have reserved a space (To be determined) for one of the members of this forum. 

Since I reduced the available number to 30 investor units should be built and rentable within 10 to 15 months. Your trust deed investment will be for an 18 month note and unit availability is subject to weather and any outside influences outside of our control.

I am now offering a straight equity share deal to join me and bring $40k as a TD note @ 10% into the deal for 18 months, no qualifying for a loan and no income / credit requirements.

I will qualify and place all 30 loans on each duplex and through an equity share deal will provide you 50% of the property for 10 years and a cash equity share exit at the terms end!

I can not sell these unit’s outright as I will have hundreds of rental units and want a uniform look, high quality service and clean desirable property!

I am going to provide 5 duplexes (10 units) for management and maintenance associates to have a live on premises opportunity along with their salaries. And provide a rental model for prospective tenants.

This is my disclosure, I have an investment interest in this project and invested in and will receive a percentage from the developer and builder, I am working with a professional team to create uniform units with upgrades and solid surface floors.

I agreed to put in as TD notes $40k per duplex (25%) to pick up the additional cost not covered by construction financing.

I will pick up all vacancy and maintenance cost out of pocket and provide equity share cash flow for rented units from month one!
We will record the equity share agreement on title and define terms and conditions there in!

Standard builder warranties are provided and term varies depending on the component of the unit!



 I just got the 30th investor for this so it is now closed!

Thanks for all the input!