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BUILDER MODEL HOME
LEASE BACK PROGRAM
If you have been looking for one of the best Investment
Opportunities as a long distance real estate investor, I have some
great news!
Major Builders in Texas will sell their model homes they occupy to
us and they will lease them back and pay us rent!
Model home leasebacks are rare opportunities where you can buy the
Builder's model home and then immediately lease it back to the
builder for a secure positive cash flow until the community/sub-division is
built out.
The Builder is the actual Tenant.
Builders will use the model home as a tool to sell and showcase their products. The
model homes include all the amenities, features and upgrades
available by the builder to entice potential buyers to build in
their community. Typically, the upgrades can add an additional
20-30% to the base price of a home. Many times they lease the model
homes back from the investor for up to 3-5 years! Model home leasebacks are one of the
most secure investments you can own, and as a result, are also one
of the most sought-after investment opportunities in Texas.
Why would a builder do this?
Builders offer lease backs primarily to
generate funding for new projects and the development of more homes.
Smaller building companies typically use this tactic more frequently
than larger companies. Working with an investor to finance a model
home means they can free up their credit lines for more construction
projects. Since model homes are typically built in the early stages
of a housing development, they can often be purchased at a lower
price than subsequent phases.
On closing, the builder leases the home back from you! There is a
written lease that spells out all terms including a 2 to 6 month
move out notice! The builders will even help you sell or rent the
house before they move out!
We currently have model homes available in the following areas: Dallas/Ft Worth,
Austin, Houston, and San Antonio Texas.
Hopefully you are seated while reading this
because these facts will astound you. With most model home leaseback
programs there are no property management fees, no maintenance
costs, no repair fees, no tenant turnover, no utility deposits or
payments, immediate tenant, reliable rent payments, fully loaded
homes at today's prices, exquisitely maintained home, easy exit
strategy, and in some cases...NO PROPERTY TAXES or Home Owner's
Association fees to pay!
Is it any wonder why many long distance investors lick their lips
when they hear the term "model home leaseback"? If you are looking
for a simple way to invest long distance it will be hard to beat
model home leasebacks. It's really a very simple and more secure way
to invest in real estate, especially if you are risk averse. If you
have ever taken a pencil to the fees and expenses you incur for a
typical rental home over 2 years then you know where most of you
cash flow actually flows...right out of your pocket. With model home
leasebacks the cash flow you earn is the cash flow you actually
keep. These deals are rare but are out there if you dig deep enough,
or better yet, know someone who has those connections.
In summary, Why Builder Leasebacks?
No Property Management Fees
No Maintenance
No Repairs
No Upkeep
Great for Long Distance and Passive Investors
Immediate Tenant!
Reliable Rent Payments
Fully Upgraded/Loaded Home at Today's Prices
Homes are Meticulously Cared for at No Cost to You
Excellent Cash on Cash Returns
Easy Resale or Rental – EVERY BUYER WANTS TO OWN THE
MODEL!
Some builders will also pay for
your owner’s title insurance policy, about 1% of the sales price
typically and up to 2% in closing costs.
We currently have the opportunity to purchase a
model home in Dallas Texas similar to the picture shown above.
Purchase price is $160,000
2 year initial term lease - renewals indefinitely
possible
lease pays $1,500/month
builder sells property for investor at lease end
builder pays property taxes
builder pays Insurance
builder pays HOA fees
Return on investment: 30%
Minimum investment required: $ 40,000 US
Model homes allow real estate investors to buy at
low cost, immediately lease the property and potentially sell high.
By utilizing builder leasebacks, investors can cover much of the
cost associated with the home, receive free maintenance and keep the
investment property pristine during the life of the lease. This
investment opportunity is one of the safest investments available in
today’s market, and is extremely rare. Overall, the key to the model home leaseback
program is that you have a measured risk with stable income for a
time period, more than almost any other real estate investment.
After the builder's lease is over, you have an exit strategy
pre-planned for rental or resale. This type of investment can have
very strong cash on cash returns. Add a little appreciation, low
expenses and the tax benefits and your total return could be
staggering.
Please give me a call at 905-901-3063 if you are interested in this
opportunity. Don't delay as these opportunities sell out
fast
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Why Texas?
Frequently asked questions
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