ABC Capital Investments, LLC FAQ
These are our client’s frequently asked questions. If you have questions that are not listed below, please do not hesitate to contact us.
Investing with ABC Capital Investments, LLC
They are not estimates, we rent 25-30 houses a month. In addition many of our staff have lived in Philadelphia all theirlives. We “estimate” lower than market rent. If we say it will rent for $900, it will rent for $900 at least and within 30 days. $900/month rent for a $70,000 property Never. Property management is a key factor for success in buy and hold investments. We manage our personal portfolio together with our client’s properties under the same standards. We just don’t want to risk our investments as well as our clients investments outsourcing management. Only once and i sent comps that the appraiser didn’t have so he was removed from the appraisal and they got a new one. This will be never be a problem, houses have equity in the “2” “b” neighbourhoods. Stove – yes owner responsible Refrigerator – no, never tenants tend to destroy them and then you will be required to replace them every year. It is common for tenants to have their own. Washer/dryer – no, we provide the hook up though. Yes, click here, we do not itemize line item prices. No, this is robbery Our fee is 10% and of course we do not charge if the property is vacant. We have 7 fulltime maintenance people .We will provide your contact person information in our welcome letter. if a repair is over $300 you will give me permission to do it. Besides that, most of our communication is on monthly statements. 650+ 3-5 200+ They are not section 8, but all tenant agreements are guaranteed by third party insurance. There are 3 main strategies:
1. Sell to a homebuyer: Our houses are sold to our investors below the market value so it should be no problem for them to sell to a homeowner. Unfortunately, this exit strategy requires tenant to vacate and make any necessary repairs for a new homeowner to move in.
2. You can sell to your tenants. This one is our favorite. You don’t have to vacate your tenants (so there is no downtime in receiving rents). In addition, there are no repairs to be made, because they live in the house already. The tenants can get an FHA loan or a regular mortgage and reduce their monthly payment and you can help them with the down payment.
3. Sometimes, unfortunately, clients have tragedies or something sudden happens where they need their investment back as soon as possible. Real estate is not a liquid investment. We offer to ALL of our clients that we will buy back the property from them AT THEIR COST within 30 days. We can easily resell it or keep it in our personal portfolio. Yes, in some circunstances ABC may be willing to manage a property we did not sell to a client. No, ABC has such great demand for its product it must devote 100% of its construction crews to its clients projects Yes, we have VERY limited amount of properties that are already renovated and rented. The demand for property is so high that most clients buy the property before the renovation, because there is more available. We offer an option where you can pick one of our units and we will buy, renovate, and rent it out with our money and sell you done and rented. This option cost is a 10% premium from our prices. Many clients with limited capital and good credit, choose this option. The main advantage of our properties is the high return obtained through cash-flow. They are most of the time isolated from the price fluctuation of even the most speculative markets. That said, Philadelphia had a home appreciation of more than 121% from 2000 to 2010 and we expect our city to thrive because of the ambitious development plan for the city from 2010 to 2035.How does your company come up with rent estimates?
What are typical rents and property prices your company targets?
Does ABC consider to outsource the property management side of the business?
Have you run into appraisal problems before in the past? What happened? How do you get around it?
Do properties come furnished with appliances? (stove, fridge, washer/dryer, etc.) Is the owner responsible for maintenance?
Can I see a scope of work report and costs breakdown for a recent rehab?
Is there any lease renewal fee?
What is the management fee each month? Will I get charged this fee if my property is vacant?
How staffed is your Property Management (PM)? Who will be my primary contact?
How passive will my investment be? What decisions do I have to make, if any?
How many properties are currently under management by ABC?
How many properties have most of your investors?
How many investors does ABC have?
Are our properties rented to section 8 (housing benefit) tenants?
If I need to sell my property what are the exit strategies?
Will ABC manage a property that we did not buy from ABC?
Will ABC do construction for a home or project I did not purchase from ABC?
Can I buy a property from ABC already renovated and rented out?
What is the appreciation potential of my investment?
Philadelphia
Kensington, Bad lands. drugs, leads to major crime.. Homeownership in Philadelphia is 54.1% (2008-2012)What areas do you avoid? Why?
What percentage of the population rents/owns?
Finance and Finantials
We work with various lenders. The Foreign lenders will finance 50% of the Appraised value. Please Contact us for more information. Yes, we have VERY limited amount of properties that are already renovated and rented. The demand for property is so high that most clients buy the property before the renovation, because there is more available. We offer an option where you can pick one of our units and we will buy, renovate, and rent it out with our money and sell you done and rented. This option cost is a 10% premium from our prices. Many clients with limited capital and good credit, choose this option. The main advantage of our properties is the high return obtained through cash-flow. They are most of the time isolated from the price fluctuation of even the most speculative markets. That said, Philadelphia had a home appreciation of more than 121% from 2000 to 2010 and we expect our city to thrive because of the ambitious development plan for the city from 2010 to 2035. If you are qualified by our preferred lender (Philadelphia bank). We are now pleased to announce that we have private financing to finance your initial purchase and construction (will require 25% of your investment down). The Philadelphia bank will refinance this short term financing after the 6 months at prevailing interests rates (4-5%). The bank will refinance you at 75% of the after repair value. This will in most cases give the borrower all their money back essentially producing a no money down deal. The prequalification can be done in person or at the bank and takes no longer than 10 minutes. Please call us at (267) 324-3936 for more info or send us an email. Yes, you can buy the home cash and refinance after the renovation based on an appraisal.Do you offer financing for foreign borrowers?
Can I buy a property from ABC already renovated and rented out?
What is the appreciation potential of my investment?
Do you offer financing for national borrowers?
Can I refinance my property after the renovation?
Renovations
First year, we offer a maintenance warranty for free (From June 2016, it will only be 6 months.) that covers everything with no deductible. From year 2-7, we can extend the maintenace warranty for $38/month. Yes, the cost is guaranteed. If for any reason the renovation is more costly than we estimated, ABC Capital Investments would pay the extra cost. No, ABC has such great demand for its product it must devote 100% of its construction crews to its clientDoes the maintenance warranty cover all?
Are the renovation costs guaranteed?
Will ABC do construction for a home or project I did not purchase from ABC?
Insurances and Warranties
You can protect your assets by buying your property through a Limited Liability Company (LLC). The cost of constituting an LLC are included in the closing cost and we will do it for you. Yes, the cost is guaranteed. If for any reason the renovation is more costly than we estimated, ABC Capital Investments would pay the extra cost.How can I protect my assets?
Are the renovation costs guaranteed?
Our Tenants
You can, only happened once and its not worth it, you will never see the money. However it is totally your prerogative to do so. Most tenants do not damage homes. However you cannot charge for normal “wear and tear” so you will always have to repaint, clean ect. Most “turnovers” are $900. The worst case I have ever seen is when a tenant maliciously left all the water on in a house and that damage was still under $2,000.00. We make these homes for rentals, so we don’t do carpets and we make them durable. No. They don’t pay market rent and they extort you for repairs (which are not needed) once a year. You also have to wait for a tenant to move in and this can take 2 months. Most of our houses are rentedbefore completion of construction. Single family 3 to 5 years. multi’s 1 and a half years City government, Comcast, contractor, administrative, Home Depot, Wal-mart etc.. $3000-$6000 per month (we ask for at least 3 times monthly rent) No evictions, no felonies, no bankruptcies and make 3 times the monthly rent.If a tenant destroys my property, do you press charges? Has this ever happened before?
How much damage does a tenant typically do? When they move out, how much should it cost to get the place move-in-ready for the next tenant?
Do you rent to Section 8, or low-income? Why or why not?
How long does your typical tenant stay for?
What type of jobs do your typical tenants work? What is a typical salary?
What is the typical credit/background profile of your tenants?
Foreign National Investors
We work with various lenders. The Foreign lenders will finance 50% of the Appraised value. Please Contact us for more information. Yes, you can, and in fact many of our clients are international. For further protection, we recommend that you buy your property through a Limited Liability Company (LLC). The cost of creating an LLC is included in the closing cost and we will do it for you.Do you offer financing for foreign borrowers?
I’m not a US citizen, can I buy properties in the USA?
