RISK MITIGATION
 
There are risks when purchasing real estate. However, the wealthiest people in the world have all made their money in real estate or have invested in real estate after they ran successful businesses. What does that tell you? It tells you that there are ways to mitigate risk to a point where investing can be HUGELY PROFITABLE and create tremendous returns on your money. At OCG we do a number of things to help mitigate that risk and create profitable long term investments and stability for our clients.
 
 
Property risk mitigation
 
Minimum of 6 comparable properties are obtained to insure the property is financeable before purchase.
Complete renovation bid before closing (with renovation buffer)
Rental analysis done on property before closing
Inspection completed on property before closing
After move-in repair reserve
After repaired value (ARV) appraisal completed on property by independent appraiser before purchase.
Nice buffer of built in equity in the property.
 
Memphis Market
 
Low depreciation risk – Housing Price Index (HPI) declined only 2.89% from the 4th quarter 2007 to 2008 during the largest real estate crash in U.S. History.
Homes are selling for less than replacement cost putting a floor on the further reduction of market values.
Memphis has one of the highest monthly rent to price ratios in the nation increasing monthly cash flow ROI during the sales cycle.
Over the past 20 years, Memphis has had only two quarters in which home prices declined excluding 2008 showing the stability of the market.
 
Structure
 
Well- structured alignment of OCG’s and investors interests. We have guarantees on renovations and tenants so our goal as well as our investors goals are to do quality renovations and obtain quality tenants.
When ever using private capital the money is always secured by the property with proper liens / trust deeds so the property cannot be sold without the capital first being paid off. It also decreases equity exposure from potential liability risks associated with owning property.
Investor with capital is named as a loss payee on the insurance policy.
Independent 3rd party attorney review of all closing documents, closing process and funds disbursement assuring proper documentation.
 
OCG Properties
 
We have renovated and completed nearly 100 real estate transactions in the last two years.
We have extensive knowledge of the current real estate and lending markets.
We know the ins and outs of the Memphis and Indianapolis markets and have developed long standing relationships
We have in-house renovation, property management, property research, property sales and do almost every step in the process in-house which decreases inefficiencies and mitigates multiple risks associated with outsourcing.
 
 
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