30 Years Of Leverage | Alphapro Buy And Flip Model
Announcing the all new Alpha Property Management Fund
“After 30 years managing income properties for our owners it is natural for us to represent the interests of property owners: to insure their steady income and the security of their investments: An accountant friend of mine, who has decided to be involved, says that we will be able to leverage greatly the equity investment in short order and that with my 30 year old company and track record acting as a buffer to protect the interests of the investors and the banks, we expect our equity fund that we are forming will be able to become very highly leveraged and take advantage of all time low interest rates and fire-sale prices to acquire, rehabilitate, and eventually flip income properties. The idea is that every dollar invested will be leveraged with very low interest rate debt for maximum buying power. Cash-flowing the property after it is acquired is what we do for a living.” Sally Labate
It is a natural progression for anybody secure and sound enough to weather this storm and survive it a second time, to lead the way as the buying begins.
Like Sally, if you own an established property management company with a track record for doing a great job for it’s owners, you may be in a perfect position to raise funds and pout them under management.
I have clients who make substantial money with their real estate licenses by buying and flipping properties. Who better to manage a real estate investment pool of funds that the very managers who are actually making day to day decisions and who know how to manage he tenants and the assets anyway.
While I would not recommend to somebody without Sallies expertise, I would certainly trust her to maintain the capital and enhance the value of income properties, because that is exactly what she has done often in spite of the owners poor judgment, for 30 years.
Rounding out the offering (which will be done under Regulation D rule 506 a private placement of LLC Shares with the funds escrow-ed for investments in property only) is the fact that Sally’s credit is so good as to leverage every dollar with several dollars in debt at the lowest possible rates, enhancing income potential for the investors, with Sally splitting profits 50-50 with the investors, and using her 30 year old company and ability to leverage the capital and buying power also serving as a buffer to protect the banks and the investors – she is really putting her money where her mouth is!
This type of funds raising effort can be done by anybody – I recommend PPMfast.com to get a complete and up-to-date set of documents and disclosures for your state and the federal agencies. You may be surprised that you can be up and raising money in days with an investment of under $100!
In Sally’s case this is taking a little longer because her accountant is going to be involved and the money is going to be held in escrow specifically for investment only, and segregated from the other company funds.
That is the reason for the elaborate, scalable Drupal website application we built for her; eventually Sally will go nationwide as a property management network of independents who have funds available for rehab and acquisition and who can pick and choose their clients and investors!
“I was so impressed with the $699 video commercial they did for us and how great they made my husband look – so I had them redo the website. We haven’t even started the promotion yet, I have been so busy moving my 30 year old property management company to my home-office-complex – but it has already cash flowed: somehow somebody found the new site, and referred another lady to me because of my new Drupal website: resulting in a $30,000 per year property management contract, and plans to put a large amount of money under management (the idea being to buy and flip the properties in this market, since that is what the owners that we work for are doing with our help). We are now planning a private placement of LLC shares creating a pool of funds to be leveraged with our borrowing capabilities. I would not have imagined that a simple web video project could grow and cash flow so quickly. They also put me and my staff in control of our amazing elaborate website, an added bonus. I can only imagine what will happen now when they actually start the marketing campaign – oh you are reading this, aren’t you?!!” - Sally Friar LaBate, Alpha Property Management in Sacramento California
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[...] Posted by Israel Rothman on Oct 14th, 2010 | 0 comments [...]
I would recommend Reg D Fast® rather than PPM Fast. Reg D Fast is a much larger site with much more content. Ironically Reg D Fast® was built by the same guy that built PPM Fast… Mike Stapleton. Mike sold the site in 2009. Reg D Fast has the newest, and most up to date PPM Templates, and information available. PPM Fast’s owners do not monitor the site’s livehelp. To get help you must call and leave a message, and wait for the owner to get off work at Boeing before you get a call back.
Just our humble opinion…
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