My New Blog

The safest and best current investment for both short-term and long-term gain is the informed purchase of foreclosed single family homes that can be rehabilitated, rented and managed by a professional property manager.

Over the past three years we have been inspecting foreclosed homes as they are listed, buying the best ones for our investors, then repairing them. In many cases we also find great tenants and manage the properties as well. The results for 17 of the homes that we manage are on the attached sheet.

For these 17, we have bought and repaired for an average total of $86,112, and rent them for an average of $1266 monthly, or an average annual return of 11.1%, after all expenses are paid.

Because there are no mortgages and our total outlay is 20 – 30% less than the cost of construction, it is reasonable to expect a decent capital gain over the next ten years. As long as the properties are well-maintained and managed, we believe that it will be very difficult to find a safer investment.

I have been told that some foundations and non-profits have their endowment money invested in bonds and Treasuries that pay less than 3% and that will show little or no capital growth. May I suggest that well-placed and well-managed real estate investments could safely produce much larger returns for the beneficiaries of these funds?

I would be happy to entertain any questions.