Frequently Asked Questions (FAQs)
Questions:
Q:
Why should I invest in your investment
program?
Answer for Investors:
We, Asset Development Company (ADC), specialize in residential homes
in and around the Atlanta, Georgia
area. We can offer you
unique services that lower your risks and attract better tenants and buyers for your
properties.
We strive to reduce expenses, increase
revenues, and lower the risks.
Our real estate investment solutions can diversify your real estate
portfolio because our solutions can provide your with...
- Better properties in good neighborhoods
- Quick turn around to make the property ready for sale or rent
- Allocate better tenants
- Sale with no realtor fees
- Lower tenant turn-over expenses
- Obtain tax-free capital gains
We want to help you build wealth, one property at a time.
No inflated numbers, no guru hype, no false claims
Just straight forward strategies for acquiring, financing, and
selling/renting property.
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Information
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Q:
Why should I invest in real estate?
Answer:
Here are some reasons why you should invest in real estate:
- High rate of return on the sale of the property
- Tax benefits
- Regular income
- Capital appreciation, build equity in the property
- Inflation hedge
- Investment portfolio diversification.
|
Investment Avenues |
Returns |
Volatility |
Liquidity |
Risk |
|
Stock Market |
High |
Very High |
High |
Very High |
|
Bond/Notes |
Moderate |
Moderate |
High |
Low |
|
Bank Deposits |
Moderate |
Low |
High |
Low |
|
Precious Metals |
High |
Moderate |
Moderate |
Low |
|
Real Estate |
High |
Low |
Low |
Low |
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Information
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Q:
What are the benefits of real estate investing?
Answer:
- Leverage - you can borrow money to buy real estate. You
can't borrow money to buy stocks.
- You can purchase real estate for less than its market value.
- Tremendous amount of tax advantages through depreciation.
- Real estate markets are insulated in local markets.
- You can control the value of the property.
- Real estate market is slow to react to change, giving you ample
time to react.
Investing in real estate is a great way to gain equity in a piece of
property, take advantage of possible tax benefits, and maybe even make a
considerable profit from the sale of the property. These are some
of the many reasons why people are purchasing real estate as investment
property and current interest rates makes today a perfect time to buy.
The benefits of real estate investing are difficult to pass up, so
contact us today and let's find your first or one hundredth real estate
investment property.
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Information
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Q:
What are the risks with investing in real estate?
Answer:
There are some common risks associated with real estate investing.
Real estate investing has provided many investors with positive cash
flow, tax benefits, and the satisfaction of making a positive impact in
their lives. However, like any investment real estate has
intricate nuances and market trends that, when ignored, can cause an
investor tremendous headaches.
Unbelievably, many investors are willing to part with
their hard earned cash without taking the time to study their
investment. They rely on traditional trends and gut feelings.
Before you risk your money take the time to learn all you can about the
market. By aligning yourself with the right professionals you can
avoid these risks and you will help ensure an excellent return on your
investment.
|
Risk |
Information |
Risk
Mitigation |
|
Failure to Determine Your Time Need
|
Cash flow, capital appreciation, tax
benefits, loss of management, equity pay down, and pride of
ownership are just some of the things that need to be addressed
before you make an investment in real estate. |
Before you invest a dime , we will work with you to determine your needs and ensure
our investment strategy meets your short and long-term goals. |
|
Not Checking out the Seller or Numbers |
Claims of extremely high rates of
return run rampant among the real estate investment community.
Don’t get caught up in the excitement, check everything: rents,
payment history, taxes, expenses, deposits, future
modifications, etc. Make sure you have the right people in
your corner. |
We are extremely detailed oriented.
We will review the deal with you in detail and provide you with
the evidence to substantiate the numbers. |
|
Forgetting You Are Buying into a
Business |
Owning investment property carries
with it a great potential for creating wealth and some
potentially difficult decisions. Evictions, re-investment
into the property, and time management all need to be taken into
careful consideration. This is not a ‘hands-off’ business.
|
We help relieve you of many "time
robbers" associated with real estate investing by handling
evictions, repairs, and routine maintenance nuisances. |
|
Avoid Negative Cash Flow
|
A property that eats up cash every month
can drain your working capital. This can create stress,
frustration, and become quite painful. Predicting constant
appreciation is extremely difficult, if not impossible, for many investors. A strain on your cash flow may cause
you to sell the investment before the benefits of ownership are
ever realized. |
With proper due diligence before the
purchase of a property, we can help eliminate the risk of
negative cash flow. |
|
Failure to do a Thorough Inspection
|
Look under every rock. Hire a
professional inspector. Ask the tenants about pest
problems, structural damage, or reoccurring problems.
Don’t overlook anything. A value driven real estate
professional will help you find the right inspector and can help
you avoid costly mistakes. When investing your hard earned
money be sure and use sound business judgment. |
Our choice of home inspectors are the
best in the business. They can provide us with an
unbiased, independent inspection to help you make a wise
purchase decision. |
|
Failing to Have Adequate Insurance
|
Investment property brings liability.
Tenants, cars, cleaning facilities, property
liability - the list is quite extensive. Adequate
insurance coverage is an absolute must. |
Our insurance agent can recommend
solid insurance choices to protect your investment.
Be sure to consult with an insurance professional and protect
your hard earned assets. |
|
Inspect, Approve, and Confirm All
Documents |
The list of documents that need to be
proofed can be overwhelming.
Building permits, zoning laws, rental and lease applications,
underlying loan documents, HOA by-laws, title policies, mineral
leases, inspection reports, purchase contracts, insurance, etc.
You shouldn't attempt it alone.
|
Our attorney can review and suggest
appropriate actions to help protect your investment. The
right professional can remove most of the stress and bring the
transaction to a conclusion smoothly. |
|
Get a Bill of Sale For All Property
Involved |
Many types of personal property (e.g.,
appliances, furniture, fixtures, etc.) can be involved in an
investment sale. Be very detailed - know who owns what. |
We help ensure all the
associated property items are included in the sale at the time
of purchase. |
|
Charge Fair Rents |
Vacancies, turnovers, and lease
terminators are a big expense. Charge fair rents,
treat your tenants with respect, and respond as quickly as
possible to their needs. It’s a lot less costly in the
long run to take care of the little problems before they become
big problems. Vacant property cost money. |
We help minimize this risk with a due
diligent tenant screening and proper customer service for our
tenants and tenant-buyers. |
|
Select Qualified, Good Tenants From the
Start |
Take the time to check references.
Previous landlords, employers, financial references, credit and
judgments are all vitally important. If there are any
questions, do a thorough investigation. Drive by their
previous residence. A little work up front can save
tremendous problems later. |
We help minimize this risk with a due
diligent tenant screening process. |
|
Don’t Spend Positive Cash Flow
|
Most successful investors have free
and clear properties. Be sure to re-invest your cash flow
back into the property payment and speed up the amortization
schedule. This decreases your debt and increases your
equity, which builds your net worth. |
There are many ways to re-invest your
cash flow. Using your positive cash flow
wisely can increase your holdings and ultimately your net worth. |
Investment property can be one of the most rewarding aspects of your
financial portfolio. Be sure to do your due diligence before
you invest. Do your research. Consult with real estate professionals and protect yourself from
potential hidden problems.
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Q:
How do I minimize my risks?
Answer:
We are very due diligent in our investment review process. We take
many factors into consideration before we invest in a property.
Let us review our process with you, so you too can see how to make a
wise decision on your next real estate investment.
Also refer to our
FAQ question:
What are the risks with investing in real estate?
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Q:
Why should I partner with you to invest in real estate?
Answer:
Our company is the result of a vision to capitalize on the burgeoning
real estate market and offer that opportunity to others.
Additionally, we seek to maintain or improve the areas in which we
invest. We pride ourselves on our due diligence and professional service. We welcome the opportunity to help
you reach your financial goals.
Contact us to discuss your investment goals and let us help you
determine if real estate investing can, or can not, assist you in meeting your objectives.
Contact Us
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Q:
How can I use my retirement funds to invest in real estate?
Answer:
Which do you know more about: stocks or real estate? If you
answered real estate, then consider using your expertise to boost your
retirement funds. You can set up an individual retirement account
to purchase raw land, single-family homes, apartments, commercial
buildings, and other properties.
Investing in real estate through a self-directed IRA enables you to
diversify your portfolio and benefit from your knowledge of real estate,
while enjoying the tax benefits of an IRA.
You can roll all or part of your current retirement funds into a
self-directed IRA. Some financial experts recommend having at
least $50,000 in the new IRA, while others think it should have at least
$200,000. Again, it depends on what you want to purchase with the
account and how you intend to pay for the real estate. Purchasing
property outright is the simplest way, but your IRA can invest in real
estate through a down payment and subsequent loan.
Investing your IRA in real estate can better protect against loss of
your principal while generating attractive return rates. Any
income from non-leveraged property, proceeds from its sales, or capital
gains on it return tax-deferred to the IRA.
Equity Trust Company
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Information
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Q:
What
exit strategies do you offer?
Answer:
Although we prefer a lease purchase exit strategy, we also
partner with you on long-term rental properties and perform rehabs
with a contemporary sale exit strategy. Or, we can perform a
combination of these strategies. Since we have experience with all
of these strategies, we can provide you with a wider range of solutions
to meet your investment goals.
The investment model is simple...
Buy below market
value >> repair if needed >> sell (retail sale or lease purchase) or
rent the property
Visit our
Investors page for listing of the benefits for each exit
strategy.
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