Project# 6139579

Here is a current investment summary. As always, a quick response is needed.
• Project term: 4-6 months.
• Refinance and renovation, single family property. Location: NJ 07111
• Funding requirement is 86% of cost, representing 52% of After Repair Value (ARV)
• Exit: Refinance
• Projected annualized ROI: 41.7%


Investment, and profit share, and interest, are secured by:
1. First mortgage; and
2. Developer company shares (the ownership of the property essentially, avoiding the need for foreclosure in the event of default)


Download the Investment Summary


Let me know right away, if interested. I will send you the information package when available.


Review "Safe & Smart REO Investing"




NOTE
Not all projects are published. If you have an active interest, make sure you let me know, so I can contact you when I have an investment that fits your needs!






Regards,
-Paul
___________________
Paul Luykx
LX Financial LLC
Ph: 201-918-5443
Ph: 800-405-0676
Fx: 866-839-1337
pluykx@lxfinancial.com
http://www.lxfinancial.com/




"Be fearful when others are greedy, and be greedy only when others are fearful".
- Warren Buffett 

Why ROIs are so high now - New projects

I did not have any new investments this week, so I thought I'd send you a small blurb instead....

Last year Returns On Investment (ROIs) were in the 20-30%+ range, now they are in an unbelievable 30-50%+ range - and at an even lower risk because re-sales are picking up, and our mortgage-secured investment rarely exceeds 60% of the post-rehab, appraised value. In short, ROIs are very high now due to the following:

1.     More bank-owned property liquidations, at even lower prices.

2.     More consumer confidence: Faster re-sales, at somewhat higher prices.

3.     Our properties are attractive to buyers because of high cash flow - of interest to homebuyers who want mortgage helpers, and investor-buyers.

We continue to be highly selective: An easy 90% of all funding requests are declined. Risk avoidance is Job 1. (Even in today's market we see investors that lose money because of a too high acquisition price, long/erratic rehab process, slow sales, slow leasing, property management issues, etc. - all things we cover off in advance). I hope to have at least 2 new investments available next week.

Review the "Smart REO Investing" information

REO investments: What's new?

Housing markets are picking up a little, and lenders are liquidating more properties.
The occurrence of both of these phenomena serves us very well: More opportunities of course, and re-sales of repaired properties become more viable.

The projected ROIs are strong, mostly in the 30-50% range.
These returns are achieved with mortgage-secured investments that rarely exceed 60% of the after repair values.  Truly amazing! This will not last forever, but for now we remain faced with what I believe are the best (high return/low risk) real estate investment opportunities of a lifetime.

Renting the properties out, followed by a quick refinance remains the preferred exit.
Rental markets are strong, and rents easily make after repair refinances possible.

Focus on 2,3,4, and now also 4+ family properties

Resale markets are still weak: Sales and mortgage processes take too long, and outcomes are always uncertain. It is for that reason that we remain focused on multi-family properties with strong rental income/refinance possibilities.

We avoid 1-family properties
Rents are (relatively) low, reducing or eliminating refinance as an exit. In addition, there is the reliance on a single tenant, tenant-occupied is tougher to sell, and the wear and tear of the newly renovated 1-family property reduces market value. Developers focus on resale only, which can take too long. Our profit share may be pre-determined, and we charge interest, BUT we want to be paid out so we can make the next investment and earn another profit share!

Investment strategy
We do not invest as a (co-)owner, but as a mortgage-secured investor with an upfront agreed to profit share. We will take less profit, but we want our money back first + profit share + interest. Go here to review the investment strategy/structure.

Investors/Partners wanted

I invest in bank-owned, NJ properties as a mortgage-secured lender (NOT as a buyer). 30%+ ROIs. I am looking for an investors/partners for new opportunities.

Here is my investment strategy. Please contact me if you see a potential fit:

http://www.lxfinancial.com/Smart_REO_Investing.php

 

Regards,

-Paul

___________________

Paul Luykx

LX Financial LLC

Ph: 201-918-5443

Ph: 800-405-0676

Fx: 866-839-1337

pluykx@lxfinancial.com

http://www.lxfinancial.com/

"Be fearful when others are greedy, and be greedy only when others are fearful".
- Warren Buffett

Project# 6463177

Here is a current investment summary. As always, a quick response is needed. Remaining available participation: $32,000.00. Let me know right away if interested. - P

• Short term project: 2-3 months
• Purchase, minor renovation, and conversion to rental, single family property 
• Strong borrower. Permanent mortgage is fully pre-approved
• Funding requirement is 87% of cost, representing 69% of After Repair Value
• Exit: Sale, or bank-refinance as an investment property
• Projected annualized ROI: 53.2%

Investments and profit shares are secured by:

    1. First mortgage; and

    2. Developer company shares (the ownership of the property essentially)

Download the Investment Summary

Review the "Smart REO Investing" information

NOTE
Not all projects are published. If you have an active interest, make sure you let me know, so I can contact you when I have an investment that fits your needs!

"Be fearful when others are greedy, and be greedy only when others are fearful".
- Warren Buffett

REO cost overruns? delays? Our profit is secured & time is on our side

I am constantly reminded of why we structure our investments the way we do....
REO (fix and flip) projects are no different than any other project - full of possible unpleasant surprises: cost overruns, it takes longer, and the property re-sells for less than projected.

This may erode developer profits, but not ours: Our profit share is pre-determined, mortgage-secured with our cash investment, and we charge (high) interest. Our basic stance is that we will accept a lower profit share, but we want to be secure, and paid back first: our investment and profit share - with interest.
 

I see REO projects every day: for development financing, for re-sale financing, or for permanent financing because the developer is keeping the property as a rental. And I am constantly reminded of why we structure our investments the way we do: We're not too worried about cost overruns, or a low resale price – and most importantly: time is on our side. Everything seems to take forever nowadays, and I am comforted by the fact that it is the developer who fights the clock, and not us.

If you are interested in reviewing our investment program and/or investing with us, go here for Information 

Please contact me if you have any questions.

- Paul

Financing REO projects in 2012

We are still faced with the best real estate opportunities of a lifetime - and amazingly they are even getting better! As sad as it is to say, the economic malaise continues to serve us very well.

FOCUS ON RENTAL VIABILITY 

Because resale markets remained weak (and rental markets strong) during 2011, we started assisting developers with refinances to convert rehabbed properties to rental properties rather than wait for the re-sale. This way we were paid back, and developers could cash out and move on to the next project. Long-term rental viability is therefore now more important than resale value - which is why we prefer 2,3,4-family properties.

INVESTMENT CRITERIA

As of now our investment criteria are as follows:

• 1-4 family properties only. (2,3,4-family preferred)
• Preferred investment size: $20K-$100K ($200K max)
• NJ, NY only
• ARV (After Repair Value) of at least 150% of total hard cost
• Cross-collaterization on other properties considered.

INFORMATION

Smart REO Investing information

Construction/rehab loan information

Quick quote for a project

My best wishes to you for 2012. May it be a fulfilling and prosperous year!

We're open for business :)

What if prices decline further?

If prices decline the value of a mortgage secured REO investment WILL NOT DECLINE because you have in effect a low advance mortgage investments that pays interest and a profit share:

• We invest typically at 25-50% of (already depressed) market values, and
• We are first mortgage-secured, and
• Our investment is rarely over 60% of after repair value, so we have a 30-40% buffer, and
• Our developers can still make a profit by re-selling below market value, and
• Properties can be refinanced as a rental, cashing us out, and
• If a resale does not happen there is cash flow to make the payments on our mortgage
• Rental markets are strong. The vacancy risk is low, and rental incomes relatively high

Project# 6370858

Here is a current investment summary. As always, a quick response is needed. Minimum participation: $21,000.00. (Note that not all investments are posted, so let me know what your interest is so that I can contact you directly - P).

• Purchase, minor renovation, and resale - 3-family property.  
• Funding requirement is 95% of cost, representing  50% of After Repair Value
• Exit: Sale, or bank-refinance as an investment property
• Projected ROI: 43%

Investments and profit shares are secured by:

    1. First mortgage

    2. Developer company shares (the ownership of the property essentially)

Download the Investment Summary

Review the "Smart REO Investing" information