Landmark Housing (LH) is an asset solution company that assists clients in determining which exit strategy (cash sale, rent, or seller-finance), best suits their needs and the asset profile.
The success of an investment is largely based on having a clearly defined exit strategy prior to engaging in a purchase. Although there may be some overlap based on geographic location and market conditions, the following is provided for consideration of which exit strategy is most cost effective based on the purchase price of residential assets.
- Cash sale: above $200,000
- Rent: $60,000 to $200,000
- Seller-financed note: below $60,000
SELLER-FINANCED NOTES
Financing from traditional lenders is not available to many buyers in communities throughout the country due to a buyer's unique situation, a tightening of lending guidelines, and the lender's profit margin on small loan amounts. In order to provide buyers with the dream of homeownership, investors enlist LH to manage the process of selling properties using a seller-financing model to provide buyers "outside of the box" mortgage options. Ideal properties are those that can be acquired from banks for under $60,000 that translate into mortgage notes up to $100,000.
As cash flow notes are created, investors enjoy the benefits of portfolio income with the collateralization of an asset to secure their investment and, buyers enjoy building home equity instead of renting.
An attractive entry point to this investment is after the cash flow note has been created. Instead of waiting for the process to mature, investors are able to purchase cash flowing mortgage notes immediately; collateralized by the property. What they get is the paper associated with the payment flow and a servicing model already in place managing the asset. This entry point bypasses the time, expense and uncertainty that may accompany being a part of the process from the initial acquisition. The benefit and return to their investment is experienced immediately.
Landmark Housing provides triple win opportunities at many levels of investment. Their commitment is to work with individuals, firms and institutions to re-build communities and put people back into homes, using the most effective exit strategy that resonates with the investor.
