Why Real Estate?
Investing in real estate has some great advantages when compared to other types of investments:
Returns are traditionally much higher than CD’s, Bonds, and savings accounts, and you can physically see, walk through, and touch your investment. There is a ’real’ investment property that is being purchased and renovated, and you will always have the opportunity to walk through it before you decide if you want to invest in it.
There are no other ‘managers’ or ‘financial planners’ being paid for managing your money, regardless of whether your investment goes up or down in value. The only parties involved in the transaction are you, us, and the house. It’s very simple and easy to understand.
Also, neutral, third parties are used to verify the security of your investment. Title companies and appraisal companies are used to verify the security and the value of your investment. You can have peace of mind and sleep well at night knowing that your investment is safe.
As always, we structure our partnerships in such a way that your investment is well protected.
How is my investment secured?
When you invest with us, you have multiple layers of security protecting your investment.
You are always recorded on title as either a part owner or a lien holder, and you are always in the first position to be paid when the property sells. The property cannot be sold until you have been paid in full.
Additionally, we, as your partners, will also have money invested in the same property, right along side yours. But our money is always in second position to be repaid when the property sells. We would never advise you to invest your money into a property that we ourselves would not be willing to put our own money into. We are confident in our analysis of the property, so we are comfortable having our personal money invested in second position. If, for some reason, the property was sold at a loss, we absorb the loss.
A title company is always involved in every transaction. They verify you have an interest in the property and the amount of money that is owed to you. They will not issue a title insurance policy to the new homeowners, or their lender, until the liens, including yours, have been paid in full.
What is Haufschild Enterprises LLC's track record?
Our private investors and partners have never lost any money when investing in our properties. We intentionally structure every deal in such a way that we assume 100% of the risk. We know that our partners and investors are more interested in receiving a smaller return on their investment in exchange for a guarantee that their principal investment cannot go down in value.
Profits generated from flipping real estate can be in the 20-30% APR range fairly consistently. Our partners and investors are usually earning between 6% and 12%, depending on the specific property and the length of the term of the investment. Our partners have always received their entire investment back in full, plus all the interest/profits that were promised to them.
After meeting with us in person to discuss possible investment opportunities, we can provide you a list of references -- partners and investors we've done deals with in the past, so you are able to speak with them directly.
What type of opportunities are available?
Every deal is unique. Each home requires a different amount of money for purchase and renovation, and a different amount of time to renovate. Some properties are best held long term as rentals. Some are best to be sold to new homeowners. Typically, higher interest rates are paid on shorter term projects, and lower interest rates are paid on longer term ones. For example, you might earn 10-12% APR on a flip that takes 6-12 months. Or, you might earn 6-8% on an investment property that we decide to hold for 3-5 years.
Another advantage of owning rental properties long term is the ability to capture the ’phantom’ expense of depreciation. There can be significant tax advantages to owning real estate in the long term. Partnerships can be formed in such a way that you are able to capture some or all of this depreciation and either postpone or completely avoid paying some of your income taxes. This savings over the course of your life can be significant.