Mayfair Group
Global Investments – Local Reach
Mayfair Group has developed a unique and simple way for investors to capitalise on the Global Real Estate downturn.
We Specialise in hands free investments that can provide investors Gross Yields of up to 25% per Annum. Our Investment properties offer up to 50% equity from day one thus giving our investors strong return on investment.
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Exit Strategy: Realising Your Profit
Currently there are 5 main exit strategies. As this is a medium to long term investment, we advise holding the properties for 3 years or more. However, you are not tied to any specific term. The property can be sold mid tenancy, but only to the Tenant or another investor. Alternatively, you can wait until the tenancy is due for, and choose not to renew. The main EXIT strategy is to sell to your tenant. The US government have a homeownership assistance scheme within Section 8 which many tenants will qualify for, with our help and assistance. From day 1 of the tenancy our advisors prepare your tenant for the eventual purchase of your property at market rates. This involves considerable effort from both sides and is part of our ongoing management support. There is obviously no guarantee that your tenant will want to purchase their rented home, and at the same time no guarantee that you in turn will want to sell.
OPTIONS
1. Sell at Market Value to your Tenant. We actively manage your property and your tenant, getting them organised and ready, once they qualify, for a government backed mortgage. This is a built-in exit strategy.
2. Sell on the Open Market. As the general market picks up, we have links to agents around the city.
3. We match sellers together so single units are bunched and sold off as Portfolios to investors. Portfolio clients’ can sell to Investors; both have the advantage of confirmed track record of rental return.
4. A blend of 1, 2 and 3 will allow for a faster exit based on a portion of tenants taking up the mortgage guarantee offer as well as open market sales and portfolio sales.
5. Subject to availability, Re-Finance your portfolio and generate capital, tax free.
Buy and Hold To Generate Large Passive Income = Retire On the Income
With large rental yields of up to 25%, you could easily earn back the entire purchase price in less than 56 months! This means that you would be looking at pure profit on a monthly basis.
Assuming a rental income of approximately $750 a month, you would be earning a gross rental of $9,800 per year.
Now let’s say you have 4 properties, this gives you just under $36,000 a year! That’s more than most people earn in their jobs and a large enough income for most to retire on … and all with a little over $166,600 all in.
Goverment Backed Purchase by the Tenant
This is where the tenant buys from the investor after 1 year to 18 months. This programme works as follows:
Investor buys property at say $41,650 (refurbished, with tenant in place).
Tenant pays rent to investor of which up to 95% is guaranteed by the US Government for $750 per month.
After 18 months, the tenant offers to exercise his / her option to purchase (tenant is assisted by the management company to obtain a mortgage) through several avenues of credit counsellors and also through traditional finance institutions.
Investor agrees to sell at $72,590
Therefore, investor’s investment:
Paid: To buy property outright $41,650
Sold at (18 months later) $72,590
Profit: $30,940
Plus rental received over 18 months: $13,500
Net potential profit over 18 months: $44,440
18 payments of $750 = $13,500 Therefore, on initial investment of $41,650, the return on investment equals 107%. In 4 years and 7 months, the total outlay is returned from the rental alone.