A Simple Plan -- Beautifully Executed
- Purchase existing apartment buildings in great locations
- Small mortgages give leverage for increasing investment return and safety with positive cash flow from the beginning of the investment
- Non-recourse mortgages protect investors from liability, require no personal mortgage qualification and do not impact investors credit report or require credit review
- Remodel both exterior and interior of buildings or redevelop properties
- Reposition buildings
- Release apartments with dramatically increased cash flow and equity regardless of overall market -- we control our upside and our investment destiny
- Harvest equity earned through monthly cash flow, sale of properties, refinancing or a combination of one or all of the above
Syndication Program -- Frequently Asked Questions
Does this investment require or impact my personal credit?
The Syndication Program was designed to allow investors to invest without personal qualification. This allows individuals to expand their real estate holdings or speed recovery from credit challenges. The investors invest in the LLC and the LLC then qualifies for the mortgages if needed. Therefore, this requires no credit qualification and does not show on your personal credit report.
Can I invest IRA funds?
Most active 401k programs will not allow investments outside their short list of offerings in stocks or mutual funds. The IRS allows certain investments in real estate and Syndications have been structured to meet those IRS guidelines. We have many clients who have invested IRA funds. Typically the money needs to be in a self-directed IRA rather than an active 401k in order to do so. We can refer you to resources to help you explore this option if this is of interest.
Can I drive by the properties prior to the meeting?
The real estate market is improving, which creates great opportunity for us to do well in this investment format. The recovery has also caused good properties to sell rather quickly, so we typically identify the ideal properties first and present them at the Investor update meetings.
Can I see the properties prior to their purchase?
During the inspection phase, we hold an Investor update meeting, as well as send out information via email so investors will know what properties they are investing in.
Do I have any personal responsibility in this investment?
The properties are purchased inside the LLC and we use non-recourse loans for financing. What this means to you is that you are protected from risk as much as possible. HTI Wealth handles all of the management, remodeling-redevelopment, releasing, contracts and bookkeeping so you have no personal responsibility. You will receive a K1 report once a year to give to your tax preparer.
What kind of returns can I expect?
HTI Wealth uses its significant experience during the purchase, remodel-redevelopment, and remarketing of the improved units on the investor's behalf. Our experience and the economy of scale of this investment allow us to project returns around 10% to 17%, annually compounded. Bottom line is that you can experience the return potential of owning a property personally, without all of the responsibility and effort that this type of management entails, while avoiding any personal responsibility or liability outside the actual funds invested.
How much money is required?
Our investment units are priced at $25,000 per unit. Smaller investments can be made with prior approval based on availability.