WHY INVEST IN REAL ESTATE?

WE CAN ASSIST YOU IN YOUR INVESTMENT GOALS! Whether you are looking for a long or short-term investment, our team of professionals are ready to assist you in creating a portfolio of rental properties that fit your needs.

With the recent volatility of the stock market and the amazingly low interest rates that can be earned on standard low-risk bank certificates of deposit and bonds, many investors are looking for more stable opportunities elsewhere.

Clients looking for long-term, secure investments have the peace of mind that prime, well-located coastal rental properties can provide. First, you can insure real estate against damage or loss of income – a benefit unique to this type of investment. Another plus of this particular market is that real estate tends to appreciate over time; other types of investments can de-value more easily, but it is a rare piece of real estate that loses value over a period of time.

The ideal investor partners for Rebuilding America, Inc.™ are private investors that are interested in adding residential and commercial office property to their portfolios, but who do not have the time or desire to deal with the details of purchasing, renovating and managing real estate. Rebuilding America, Inc.™ offers its clients the pride of ownership and other benefits of real estate investment while performing and managing the day-to-day effort that is required to build a successful portfolio of rentals. Our investor partners want their real estate portfolio to be like a stock portfolio – they simply own an interest in the property, and all management is subcontracted. Having experienced the process, these investor clients come to trust that we will deliver what we have promised, and they will re-invest and purchase additional properties on an on-going basis, and will also refer their friends and associates to us.

LLC-JOINT VENTURE PARTNERSHIPS

In order to facilitate the investment process, we form Limited Liability Corporations (LLC’s) with certain passive investors while and after we rebuild selected properties. These LLC’s have experienced an after-tax annual return on investment (ROI) of between 10% and 25%. If you have $250,000 or more to invest, please contact us to discuss the possibilities!

True Story: We purchased a dilapidated commercial property on the busiest street in a downtown area in San Diego County for $500,000. This property included a vacant lot adjacent to the building, where a large house had burned down years ago. We rebuilt the commercial property, graveled and fenced the lot and put up a “For Lease” sign to see what would happen. We sold the property in 2004 for $995,000. The proceeds from the sale were used in a 1031 tax-deferred exchange to purchase a 50% share in properties in Pensacola; our share is now valued at over $1.4 million!

WHAT TO BUY, WHAT NOT TO BUY

There are more than 65 million homes in the United States, and the majority of these are single family residences. Over 42 million of these are thirty years old or older with thirty year-old roofs, kitchens, bathrooms, floor coverings, etcetera. For an investor, the purchase of the inventory is just the beginning of the process. Careful attention must be paid to its location and condition.

PROPERTY TYPES: A clear definition of the type(s) of properties that are to be purchased is very important. In order for the investment to succeed, the house must be profitable. This means that the property must be purchased for less than market value. Rebuilding America, Inc. specializes in the purchase and renovation of water-proximate single-family and multi-family homes in need of renovation in very specific areas, as well as various historic commercial buildings in the Downtown Pensacola area.

LOCATION: The location of a property can have significant impact on its future value. For example, most of the residential properties that we purchase are within one mile of the water. Waterfront and water-proximate properties tend to appreciate faster over time.

RENOVATION COSTS: The renovation costs must also be realistically estimated prior to the purchase of a property. If the property is inexpensive but the construction costs are too high, the return on investment will not be sufficient. This is where our extensive background in renovations and construction comes into play. We have a system of estimating costs for the work necessary on a given building, and can determine, before we purchase the property, whether or not we can receive a suitable cash flow based on the costs to purchase and rebuild.

LEASE RATES: Before buying a property, identifying the likely rental rates that can be obtained in the current market for that specific property and in that particular location is imperative. The rental income, after adjusting for a certain amount of unavoidable vacancy, must cover the operating expenses and the monthly cash flow to the investors. The rent should justify the purchase price and the renovation costs.

WHY REBUILD OR RECYCLE REAL ESTATE?

In 1960, the average home in America cost about $19,000, and the average rent for a two-bedroom apartment was $150 per month. Fifteen years later, in 1975, the same house cost $27,500, and the apartment rented for about $250 per month. Today, the average house in North San Diego County costs $550,000, and the same two-bedroom apartment rents for $1,200 per month. This increase in value was one of the pivotal reasons for our move from California to Florida.

Pensacola is experiencing the onset of the same huge increase in property values that has occurred in San Diego County. Here in Pensacola, we can still purchase a three-bedroom, 2-bathroom all-brick single-family house on a quarter acre of land for less than $100,000, then renovate it and within a year enjoy a substantial increase in value in addition to the rental profits. What is causing this tremendous increase in value? It is simply a matter of supply and demand. Housing is not an amenity; it is a necessity, and the population is growing by leaps and bounds. The only affordable housing opportunities widely available are single-family houses that were built 20 to 50 years ago, when vacant land was more plentiful, and there were no impact fees to deter developers.

America’s single greatest asset is the entrepreneur. There is an old American proverb, “Find a need and fill it.” Many individuals and companies have amassed huge fortunes by producing items that fill a need. The renovation of older properties to lease and hold for investment purposes is our niche, filling a need for Americans who require a more affordable housing alternative.