Our Recommended Investment Strategies

Executive Leased Properties (This has become the most popular investment strategy over the last 4 years. It is designed for investors looking for a solid plan to double their money in an average of 36 months.) The properties are purchased using low interest rate short term loans (2 to 3 years) which are leased through our property management company to qualified tenants. The tenants are granted a lease with an option to purchase the property at a future date. (24 to 36 months.) We do our due-diligence, then negotiate and procure properties that meet standards and goals of our investors. These properties are in excellent condition and need very little in the way of cosmetics. Most are purchased from the MLS hot sheet, or directly from the seller. Some are REO’s from banks and others are purchased directly from the builders, as soon as they are complete. This strategy is designed for the hands off investor looking to increase the yield on monies currently invested with less than suitable returns. We are so confident in this strategy that We Will Guarantee The Mortgage Payment Until The Property Is Leased if you choose to use our property management company and if you use an approved loan program. You should expect overall cash on cash rate of return to be in excess of 20% each year. Compare that to CD rates. (See our "Example of Yield" Link.)

REO Properties (real estate owned) by a bank or lending institution usually taken back by lender because of a mortgage default. (A Foreclosure.) Properties may be purchased at a discount. Note; we do not make offers on those that need extensive amounts of work. We only make offers on newer properties in good condition. The properties usually need only carpet, paint and a little cosmetic work. Most of the properties we buy are in the $175,000 to $250,000 range. In this market range, we have a larger audience which means that we have a shorter holding time. We find the best properties and shorten the time to get the property ready for market.

Pre-Foreclosure This is a property that the homeowners may lose to foreclosure. The foreclosure process has not started, but for what ever reason they are having trouble making the mortgage payment and want to sell before they have a foreclosure on their permanent record. We are seeing more of this because of adjustable rate mortgages adjusting upward. This scenario, coupled with the inability of some home owners to refinance, is a great opportunity to do a sale and lease back contract. The homeowners get the opportunity to keep their home and get the option to repurchase the property at a future date. This will only work if there is enough equity in the property to make the numbers favorable for the investor. The terms do need to be fair and favorable for the home owners as well. We will not ever do a Pre foreclosure or any Real Estate transaction unless all parties involved are happy with the terms and it is in the best interest of all parties involved.

Short Sale This is when you're negotiating with the note holder/ bank to sell the property at a discount prior to foreclosure and must make sure you get a clear title to the property.

Executive Leased Properties At the end of the holding period we either sell the property on the open market or sell to the tenant if they have entered into a Lease/Purchase agreement.

Sale And Lease Back This scenario is usually purchased as a pre-foreclosure and leased back to the homeowner using the above exit strategy.

Re-list and Sell The properties we buy should not need much in the way of repairs. Extensive repairs can be detrimental to the bottom line. During such a process you can uncover latent defects that need to be repaired before returning the property to market. These issues can increase your holding time and may become a costly and unwanted expense thus diminishing the profit margin. The goal is to purchase the properties at a nice discount and then have the property ready to sell after a short (two week) cosmetic overhaul.

Buy and Hold Purchasing a property for the long term is not a bad way to go. If you don’t mind being a landlord, this option may be for you. It is common knowledge that Real Estate has been the number one wealth builder in America. This is a solid strategy for the long term. Location is “key” here. You will want to get an average return of 4% over the long term if you are looking at this strategy. Over thirty or forty years that can add up to a nice nest egg. Borrowing money and letting someone else pay it back is the big idea. However, you will need to have reserves for any repair costs, maintenances and vacancies. Ask about our New Guaranteed to be leased or we will pay your mortgage program! Now in our 23rd year of business We are in the top 1% of National Producers. For information on investing in Middle Tennessee Residential Real Estate please do not hesitate to contact us with any questions.

Sell and Re-invest After the holding period many current investors are choosing the option to sell the property and re-invest in either one or two additional income producing properties

For additional confidential information please do not hesitate to give us a call.

American Homes Real Estate, Inc. 615.855.1151 ext:711

Don R. Smith, Broker 615.300.3020 or 800.222.0441
email: don@donsmith.com
Bobby Stewart: 615.498.5426
email: bobby@bobbystewart.com
John McVoy: 615.300.5326
email: johnmcvoy@comcast.net