-Buy and Hold Rental

By far our most popular investment option and the primary focus of R.E.I.S.

The buy and hold rental purchase will generally involve you supplying the down payment and closing costs associated with purchasing the rental. R.E.I.S. will cover rehab and repair costs, carrying costs, and any other unseen costs after the purchase in order to get the home rented. Once the home rents, you will receive a monthly dividend check in the amount determined by the terms agreed upon for that deal. Our annual percentage yields are between 10% and 20%. Once the mortgage has been paid down enough to refinance and draw out your original investment amount, you will receive the original investment. Your profit will be the dividend checks up until that point. All of our rentals are professionally managed for a smooth, hassle free experience.

Lets go through a quick example…

Home purchase price of $38,000 with a 20% down payment of $7,600 at 6% interest on 15 yrs, closing costs of $1500, and APY at 10%.

This means that R.E.I.S. will purchase the home for $38,000 at 6% interest on a 15 yr loan. You will supply the down payment of $7,600 and the closing costs of $1,500 for a total investment of $9,100. You will receive a APY of 10%. It is calculated as follows: $9,100 investment X 10% = $910/Year. $910/12 months = $75.83 in dividends per month. Looking at an amortization schedule for the loan amount at the 6% rate for 15 yrs, we can see that the mortgage will be paid down enough in around 5.5 years in order to pull out the original $9,100 investment. So doing the math: $75.83 X 12 months X 5.5 years = $5,004.78 in dividends on a $9,100 investment! That is a ROI of 55%! For most investors a 10% annual yield with 55% overall return will be difficult to beat, especially with a hands off automatic system.

Some things to note with this type of deal:

– You don’t get a dividend check unless rent is received for that month. This includes the time from initial purchase to the time a renter is found. We keep rent history on our houses and have near 100% rental occupancy, however, there is always a risk of vacancy.

– You can’t get your original investment back out until the mortgage is paid down enough. You will have access to the mortgage statements so you can follow along with how the house is performing.

– R.E.I.S. may choose to pay you off early at any point, either in full or in principle payment checks.

– While risk is small, it does exists. Natural disasters, economic depressions, catastrophic events such as a house fire, and other unforeseen things are all possible, and may affect both dividend checks and length of investment.