NNN guaranteed lease houses available

NNN Guaranteed

Lease Houses Available

Here are the details:

1. Each house costs an average of $60k
2. The CAP rate on each house is a set 9.11 so the average income from each house is $5466/year or $455.5/month.  You may say that you can't retire off of this, but you'd be wrong...see below
3. The terms of the lease are as follows:
   
   
   • NNN absolute lease
   • Guaranteed for 10 years, with extensions added to the back end anytime you want. Usually you will wait until year 5 to extend the lease so that both parties see what the effect of a few years makes on the rent's going rate since the extension will include a rent increase.
   • Since this is a NNN absolute lease, the investor is only responsible to make the payments on the debt service. All other payments, including taxes, utilities, insurance, etc., are made and guaranteed by the lease contract.
   
   
   
4. If the property becomes vacant, the lease payment to you is guaranteed
5. If there are any repairs that need to be made, the lease pays for them...as well as making all lease payments to you...guaranteed  to you if the property is vacant during the time of repairs.
6. Investor retains all deductions, like depreciation.
7. Money to you is automatically deposited in your account (of choice).
8. At any time after 60 days, you (and only you) have the option of breaking the lease with the lease company and taking over directly with/to the tenant. This means you will be making more money per month, but also taking on all the responsibilities of managing the tenant.
   
   
   • Vacancies
   • Collecting rent checks
   • maintenance
   • ...etc.
   
   
   
9. The total rent received from resident tenant goes to the lease company to act as manager. The investor receives their lease payment from that amount, and the lease company receives their management amount from that as well.
10. The bottom line is the lease company takes over the problems of residential income property, namely the tenant, while the investor is left with the advantages, such as the cash flow, tax deductions and appreciation.

Now, one house does a retirement make. But, many house will...if you have a plan...and I have a plan.




How to Retire from this System:

1. Buy 1 - 2 houses at a time ($60 - 120k). I like the idea of using a Self Directed IRA, or even better, a loan from the cash value of an insurance policy since you can pay it back and use it over and over again.
2. Hold the property(s) until seasoned for refinancing (6 - 12 months) in LLC or other business entity.
3. Refinance, and pay back original source of funding.
4. Original source of funding is available again to repeat steps 1 to 3.
5. Include my fast mortgage payoff program with each refinance (this is very important as this is what makes this system work so well).
6. Buy at least 10 sets of 2 houses...20 houses.
7. Since refinanced mortgage will be paid off in 10 years or less (see step 5 above), you can refinance again. This time, with no debt service to pay off, so this is all profit/cash in pocket...tax free since it is a loan...that you tenant is paying off.
8. Since you have 10 sets of houses (2 in each set), you can repeat step 7 for 10 consecutive years.
9. In year 11, the refinancing done in the first year in step 7 is paid off, and you repeat the process again. This means that every year, for as long as you want, you can have 6 figure tax free income. Can you say retirement plan?

Let's look at the numbers:

1. Average $60k house, at 9.11 CAP rate gets you $5466 cash flow per year.
2. 100% financing (remember, you control this since you can get this from your IRA or insurance policy), at 4.5% interest rate (you control this too), gets you a yearly debt service of $3437.4/year.
3. Net cash flow of $2028.6/per year.
   
   Here comes the best part.
   
4. Payoff in 10 years.
5. Refinance/cash out equity.
   
   
   • Property has equity built in when you buy it originally. After 10 years, you should have at least 20% equity or more.
   • 20% equity would mean an appraised value (based on average. price of $60k when bought) of $72
   • This means you can refinance, at 80% LTV, the $60k right back out...in the form of a loan...so it's tax free.
   • This time you sill use traditional financing, so let's just take $50k out (you can do the full $60 though) which would be about 70% LTV, at 5% interest making your yearly debt service at $3865.08...for a cash flow of about $1600/year. Oh wait a minute. At this point we will be working with the extension, which will have a rent increase in it, so the lease payment to you goes up, so the cash flow also goes up too.
   
   
   
6. These numbers are based on just one house. If you do this in pairs, each year you can get $50k tax free from each house for a total of around $100k, plus, the cash flow from each of the 20 houses per year.
7. Just a thought: If the rent went up just 10% for the extension per year, that would mean $6012.60 would be your new yearly NOI. That could mean a much larger refinancing amount than the one we've just laid out for you.

All of this takes place at the time of closing. You buy the house and there is a "lease carry back" that takes place at the same time.

If you are interested, just contact me joe@3VEnterprises.ws and fill out this form for more information.  I will put you in direct touch with the supplier.

No monetary or legal commitments are made until you talk directly with the supplier, do your D.D. on them and the houses you are interested in, and are satisfied to move move forward.

Please discuss all of this with your professional advisers before committing to any of this...but I bet they'll love it too.  If you have any questions please let me know.