Short-term: Fix & Flip
We’re buying fixer-upper properties from the bank for at least 30% below market value minus repairs. Within six months, they're sold for substantially more than we paid, as beautiful, energy-efficient homes.
Long-term: Buy & Hold
Sometimes, we hold properties for long-term profits. The properties must have a positive a cash flow of at least $200 per month after subtracting 37% monthly debt service for things like taxes, insurance, vacancy, etc.
Excerpt from an interview with Jay Sherman--
David: What makes you different from other investors, or, say, a fund manager in charge of their clients' investment capital?
Jay: For one, we visit our investments in person.
2. We invest our own money. Did you know that only 43% of fund managers own a stake in their funds?
3. We ensure our private lenders their money back in case of an early withdrawal need without any early withdrawal penalty. We just ask for a 45 day notice, however, it usually occurs a lot sooner than that.
4. We're totally transparent. We're willing to answer any question about our business and our backgrounds. We fully disclose the details about our investments.