In our experienced multi-year view this is a fabulous, low-cost time to be investing in our guaranteed built-in equity rental properties. You should read this 2x and then get yourself in here for a Strategic Investment & Tax Planning meeting any Friday all day or Saturdays 1 pm – 5 pm. Call now to set that up.
The positives of the massive demographic move towards the cities, the gentrification of the cities, the re-urbanization and rebuilding of the cities, and the fact that everyone wants to live, work, entertain, and travel to the major American successful cities are that the cities are gaining such velocity that values and rents continue to grow all over. The best cities are where all the jobs are, have low-cost of commutation, mass transportation, less reliance on gas & oil expenses, and lower insurance costs. These benefits outweigh almost every risk in existence, except some offset you make individually for geopolitical factors and leaving some small amounts in financial assets ( maybe 40% of your wealth – maybe). We will express here our carefully ascertained and accumulated view from many years of massive portfolio building and value creation. That’s the experience of 9 years and over $400,000,000 of value created in 600+ built, rented or sold homes.
Now, remember first and foremost, under our system of re-urbanization and urban infill of the last valuable lots in America’s number five city you are always purchasing under immediate resale market value. Value is created at all times in two ways. First, by the proper subdivision of large lots into smaller lots. Our expertise not only purchases the land at the lowest possible and right price - never overpaying - but it also then subdivides the land in such a way that your price and cost of lots becomes even lower due to our scientific method of zoning subdividing and architectural creativity. We know things about the zoning code in Philadelphia and the building code and a way to maximize value - having developed over 800 total properties in nine years that frankly no one else knows in totality. Only a super experienced niche firm could achieve these types of proven results developed over nine years and tens of thousands of hours of experience in one place. You can’t do that for nine years and over 800 projects in one place with no lawsuits, no complaints, all happy repeating customers, and no buy back guarantees ever being requested, unless you really know what you’re doing. Toll Brothers and other major developers can’t say that - but we can.
What we do is extremely labor intensive and involves hundreds of person-hours in micromanagement. Fortunately, our clients have a bunch of high octane workaholics doing this work for them with a very well-coordinated group of licensed professionals that know how to work in parallel simultaneously. The difficulties involved are proven by the fact no one else has duplicated our system in the entire United States all of this time. No one else builds ground up 100% new construction custom town homes for individual investors at wholesale costs. No one.
The second value creator is the bidding and quotation process to multiple contractors to get your price of build in a major city far below retail building costs. You don’t pay $500 to $700 a foot like in a Toll Brothers or other retail developer project. You are purchasing at verified wholesale costs. This is where we keep the contractors on a very tight rein and profit margin and they build at wholesale. Typically your building for $150-$175 a foot - far under retail costs. But equally important is the fact that in a major US city with intensive regulation, city inspection oversight, rules and guidelines, union involvement, labor shortages , and other government processes affecting the build - you have contractors that provide you a fixed price of build - with no ability to increase your costs. You can’t do that by yourself. That benefit is essentially nonexistent in every major city for any individual investor. Additionally, with NRIA you have the builder on the hook for penalties if the project is late. That benefit does not exist elsewhere either. Plus – they always pay – even if its late. No, it’s not a perfect world. Yes, there can be delays and that can cost construction interest. But these are the best controls - fixed pricing and late penalties - to keep vendors under control and pushing honestly to complete your project as fast as possible. Trust us – NO ONE WANTS TO PAY PENALTIES or GUARANTEES – so these contractual provisions PUSH THE VENDORS HARD – as we do daily FOR CLIENTS. Just try doing one of these projects without these controls – controls which you will never get by yourself and without our volume - and you will see just how deeply in trouble you can get. Lastly, those two benefits combined with the highest grade custom build Q2 level materials and workmanship required by our partnership with JKR Partners, LLC expert architects - make the value you earn from low-cost building incredible.
Combine the above two contract values with coordinated financing, the ability to refinance jumbo loans TODAY at 4.25% to 5% 30 year fixed and 75% loan to value and CASH BACK - and you can get all your capital back or nearly all your capital back. It means that the actual cash left in the project is earning tremendous returns ultimately on the rent and principal pay down by the tenant never mind the huge built-in equity kicker. Values are going up and appreciating. This will continue on the massive demographic trend of the cities. Rents are going up and will continue to appreciate as well.
Philadelphia is truly a small New York City 15-20 years ago.
Call us today to schedule a Strategic Investment & Tax Planning meeting or come in to perform a complete documentation audit and review our portfolio of “done deal” due diligence documents.
We look forward to it!
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