Model Home Leasebacks
Security for Long Distance Investing
By: Ron Black - Professional Real Estate Investor
Texas Realtor - President, Texas Investor Homes
Dallas/Ft Worth, TX - 972-897-6190
Ok, so you know your local real estate market is on the skids but you know you need to look at new investment opportunities so what do you do? All the Gurus are saying you should invest "nationally" but you just have not found the right vehicle that gives you the warm fuzzies. You have heard that long distance real estate investing can be a nightmare. I mean, let's face it, even managing your rental properties locally can be a pain much less 2,000 miles away. There is a solution to easing into a market in another state without the traditional start-up bumps and bruises or expenses associated with traditional rental property, it's called Model Home Leasebacks.
Overall, the model home leaseback program should likely be part of any good real estate investment portfolio, especially if you plan on investing in another state. The key is that you have a measured risk with stable income for a time period, more than almost any other real estate investment. After the builder's lease is over, you have an exit strategy pre-planned for rental or resale. This type of investment can have very strong cash on cash returns. Add a little appreciation, low expenses and the tax benefits and your total return could be staggering.