Are
you happy with the returns you are making on your
investments?
Would you like to
make 10% and more on your money while it is fully
secured in real estate holdings?
Liquid Banker is our program
that leverages
private
funds from
passive
individuals and private groups into
active investments--fully
secured by
real estate--that
produce returns and security that are unachievable
elsewhere. Some commonly asked questions are...
Specifically what
do
you do with the Liquid Banker money invested?
We invest with a focus on single-family housing assets
with upside potential from repositioning, re-pricing,
rehabbing and/or development. Money invested is fully
secured by real estate and annual returns are projected
at 10-12% conservatively. Investors may receive returns
payments monthly, quarterly or annually—dependant upon
the specific investment vehicle.
How much money do I need to invest?
We typically seek investors that have at least $25,000
to place. For single placements over $250,000, we
provide multiple asset direction options and greater
returns. We offer investors a 10% to 12% return on just
about any size of investment; however, the collateral
property type can sometimes affect the minimum workable
size of investment. In all cases, we are happy to work
with you at your comfort level for mutually beneficial
returns.
What kind of deals do you do?
Our focus is to invest in single-family housing related
deals that we believe will produce outsized returns.
There are a several deal types that allow us to do so.
The deals in which we invest vary depending on the
investment climate, our pricing forecasts, and the
particulars of a given deal. In 2007, our primary focus
will be on taking advantage of the current "buyer's
market” on inventories in the market, foreclosures, and
new development & construction of our duplex
subdivisions that cater to the rise in tenant base.
Is
there a housing bubble?
Nationally,
economists do not see a housing bubble ready to burst,
but their forecasts do show a slowdown in appreciation
rates in some markets--however forecast indicate
continued growth in our markets in South Carolina. As
always, some markets will do better than the average and
some will do worse. This is due to local market
employment, migration, wage, and supply conditions.
Overall, we do not foresee a market crash; supply and
demand appear to be in balance in most markets—and in
the south, demand for the right types of housing is
still on the rise. Our markets remain in expansion.
Can
I get similar returns by buying mortgage-backed
securities, home builder stocks or other rental
properties?
None of these other investments have the same return
patterns (absolute return, correlation with other asset
classes, and volatility) as single-family housing.
Mortgage-backed securities provide debt returns, not
equity returns. Home builders primarily provide exposure
to development and manufacturing-type risks.
Multi-family funds are the most closely related asset
class, but long-term data shows a different return
pattern. Measured against the NCREIF apartment index
since 1978, single-family housing has had higher
returns, experienced lower volatility, and been far less
correlated with equities.
What is the impact of changes in inflation and interest
rates on returns?Single-family
housing is likely to benefit from an increase in
inflationary expectations—residential real estate is a
very strong inflation hedge. Of course, higher inflation
is typically accompanied by an increase in interest
rates, but a growth in property prices would likely
offset any increase in borrowing costs driven by
inflationary expectations.
Please
contact us directly to discuss how to achieve
returns of 10% or more through passive investment of
your funds in our projects--all fully backed by real
estate holdings at favorable LTV ratios and positive
upside.
