Who are we?
REAP specializes in property management. We are here to help you become a property owner and investor. You invest in the property and let us do all the work on your behalf! Our goal is to offer financial planning, location selection, real estate broker service, mortgage loan processing, renovation, and property management. We strive to surpass a 4.8% annual inflation-adjusted return on your investment for the next 30 years while helping you become a property owner and diversifying your portfolio in the process!
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Why now?
Since early 2020, interest rates have been at an all-time low, including mortgage rates. This opportunity will only be available for a short time window before interest rates begin to climb. We decided to launch REAP to take advantage of the current market opportunity in real estate provided by the interest rate environment.
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What can REAP do for you?
We offer a one-stop solution for you to invest in real estate by helping you navigate through all steps of the process, including:
• choosing the city and neighborhood for your property
• finding the favorable mortgage loan terms
• making sure the transaction is smooth and successful
• renovating the property cosmetically and providing interior design expertise
• collecting rental payments and covering all property maintenance.
REAP will do all of the day-to-day work and troubleshooting for you! You provide the initial down payment for the property and REAP manages the rest.
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How does it work?
You pay the down payment for the property plus a $7,500 renovation fee (which will be returned to you in installments over the first 15 years of your contract). After 30 years or investor’s termination of the contract, we will charge you 10% of the house market value.
A fixed amount will pay your property’s loan every month. We will rent the property out to tenants and collect the monthly rent. At the end of every year, you will receive a cash return.
For example, let’s assume you purchase a $200,000 property with us:
What you would need to pay today:
• 20% down payment: $40,000
• 2% points to the bank: $4,000
• Renovation costs: $7,500
What you would receive: your mortgage will be paid every month at about $720. We will pay this amount to you, in exchange for the right to rent your house. In addition, we will give you a $500 payment at the end of every year.
We will cover all the expenses, costs, and taxes for you during the contract, from repair cost, maintenance, pest control to HOA, insurance, or even property tax.
After 30 years, we will help you sell the house. We will charge 10% of the selling price as a management fee. You will keep the other 90% of the house value.
Your compound annual return will be approximately 4.8% above the inflation rate. The Federal Reserve typically targets a 2% inflation level. The housing price increases by 3.62% per year in the past 30 years, which means you would have a total return of over 7%.
During this time, you can take advantage of numerous tax breaks and deductions to save money at tax time. In general, you can deduct the reasonable costs of owning and interest payments. And since the cost of buying and improving an investment property can be depreciated over its useful life, you benefit from decades of deductions that help lower your taxed income.
If you want to end the contract early, we provide an exceptionally investor-friendly policy. We do not charge any penalty if you choose to withdraw early, and we would charge 10%*(number of years/30) as our management fee. For example, if you wanted to end the contract in year 15, we will take 5% of the house market price, and you will keep the remaining 95%. You are free to decide how long you want to hold the property after that.
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Why choose REAP over other investment vehicles?
As mentioned before, interest rates are historically low right now. Therefore, all types of bond investments, and interest rates on savings accounts, certificates of deposit, etc., offer low rates of return currently.
We are in the longest bull stock market in history, and at some point, bear markets will return. And even with strong historical returns in the stock market, we are offering a diversifying investment that will not move in tandem with the stock market.
Gold is an asset that also can protect your wealth against inflation. But it typically offers low long--term returns and does not generate cash flows.
Annuities and IRAs are potentially useful tools for long-term investment. However, they have more requirements and penalties if you want to withdraw early; and are usually tied to the stock market.
REITs and other real estate funds would be another way to invest in property. A significant difference is that you are not the owner of the property itself, and as a result, you may face the risk that the company goes bankrupt and you lose your entire investment. By choosing REAP you would avoid this scenario.
Our plan manages risk and offers a stable return on investment plus the inflation rate. You maintain the ownership of the house. After one down payment, your property will be taken care of by us. The only thing you need to do is sit back and let your investment grow year after year through REAP.
With your investment, you also invest in our communities. Investing in residential real estate is building a home and a future for families and creating social utility.
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Product features and advantages
Have you thought about buying an investment property?
Are you unsure of which city and neighborhood to target?
Are you worried that the management company may not take care of your property?
Are you worried about the time and cost of drafting a lease contract and finding a tenant?
Are you afraid of having to deal with the potential eviction of a tenant that stops paying rent?
Are you worried about the gap period between tenants and the renewal cost or maintenance cost for the roof, plumbing, etc.?
Don’t worry; our team can help you navigate all the potential pitfalls which traditional investment property may cause.
We analyzed over 100,000 data points on Zillow, and we found one of the best cities for you with the highest potential increase in housing prices in the next decades. We also have an experienced realtor who can help you to purchase at the lowest price. All the houses that we bought have been carefully inspected. After renovation by our team, your property will be fully renewed and equipped before being rented out.
Under our excellent management, you will not have to deal with many of the headaches that typically accompany property management. We always consider your privacy our first priority; none of the tenants will know who the landlord is. You do not need to rush to find the next tenant because your monthly payments will come from us whether or not your property is leased. You won’t be getting calls from tenants needing house maintenance or to fix a broken appliance. We will take care of that.
Finally, suppose a tenant stops paying rent and needs to be evicted. In that case, you won’t need to spend the time and money to find a lawyer and go through the eviction process. We will do all of this on your behalf. We treat your house like our own house, and we will REAP the benefits for you.
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Advantages of Real Estate Investment
Appreciation: Over the past 80 years, average real estate values have continually increased, and these returns have not been tied to the stock market.
Leverage: Leverage allows you to purchase and control a large amount of real estate with a relatively small initial investment.
Financing: Unlike other investments such as stocks and bonds. You can get financing for the purchase of real estate. Lenders will loan up to 80% of the market value of your property, and in some cases as much as 90%.
Solid asset: Real estate is widely recognized as one of the greatest assets to own. It makes for tangible collateral, shows strength on balance sheets, and can be financed easier than most other investments.
REAP, your end-to-end services for your residential real estate investment service.
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Contact us:
T: (336) 947-3647 E: wereap4u@gmail.com
www.rentfromreap.com
211 W Lexington Ave, Ste 104
High Point, NC 27262
Sales Team T: (765)409-0652 E: investor.REAP@gmail.com
Finance Team T: (812)369-0285 E: finance.REAP@gmail.com