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.
Maximum all in cost per property of 65% of ARV (After
Repaired Value)
Memphis Market Risk:
Low depreciation risk – Housing Price Index (HPI)
declined only 2.89% from the 4th quarter 2007 to the 4th
Quarter 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 investment programs with alignment of
OCG’s and investors interests.
Property is held by a holding company and have proper
liens / trust deeds against them from a funding company
to decrease equity exposure from potential liability
risks associated with owning property.
Funding company 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 .
Owens Consulting Group,
Inc.
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 market and have
developed long standing relationships
We in-source the renovation, property management,
property research, property sales and almost every step
in the process which decreases inefficiencies and
mitigates multiple risks associated with outsourcing.
