What's the 50-2-30 model?

Yesterday, I returned from the Investor's Summit in Las Vegas that featured Tarek and Christina from the TV show Flip or Flop. I was invited to present the 50-2-30 model to nearly 600 participants.

The concept refers to the way in which my associates and I get properties that are 50 cents on the dollar, rent for 2% of the purchase price and have a return on investment that is 30% or better. We acquire properties, rehab them, interview and place quality tenants in the properties.

For instance, last week we had an accepted offer on a house in a good area of Ohio for $17,000. With the rehab costs of $5,600, the after repair value is estimated to be $44,000. (All amounts are in US dollars.)

At 2% of this purchase price, we should expect the rent to be $452/month; however, this duplex will rent for $850/month. We also need a rent based return on investment that is greater than 30%—this one is 35%. What an amazing deal for the investor!

We have the investments under the care of a professional management company that has many years of successful management experience. Your Property Options has successful investors in Canada and the US and is committed to helping its clients create long-term wealth.

It has inventory in the US that include single houses, duplexes, multi-family and commercial buildings.  This one stop shop has turn key residential rentals, as well as rehab options.