By Bobby Casey, Global Wealth Protection

Since 2007 the resounding question has remained,  “Where to invest in something safe?”

Traditionally, most people have the response, “real estate is safe”, and the automatic counter from the other side is, “Most real estate is not passive”.

When people wanted to remain passive and invest in real estate they went for the push button investments like property or mortgage REIT’s.

These were passive, but they also schooled us in why real estate and the stock market don’t really work together as a passive investment.  There are some performing REIT’s, but as of recently we have heard of REIT’s reducing or cancelling their pay out due to their own respective toxic assets on their books.

So for the investor today where and what is safe?

We know stock markets globally are volatile at best and co-dependent like a bad relationship.

In the past the advised allocation for the typical investor has been for real estate to constitute 13% of their investment portfolio.  We have seen this allocation growing as one of the larger asset classes of their overall portfolio as investors attempt to transfer capital out of stocks and their mattress.  The size of this allocation is often contingent on the availability of financing for each respective investor.

Real estate is a broad category with a lot of places to invest capital.  Let’s look at each category in the table below:

Single Family vs. Other Real Estate

We have found single family properties to have one of the strongest stability, lowest risk, and highest liquidity levels of any real estate investment category. All of which occurs with some of the smallest capital investments required.

We found a company in Charlotte, North Carolina, USA that specializes in actual passive real estate investments.

With their unique business model, they acquire the property, do a quality renovation and lease it out to a solid tenant who will sign a long term lease.  Each of these phases is controlled in-house through their own company employees.

Once all of this has been done the company will sell the property to an investor looking for a passive real estate investment.

After the sale, the company will then provide all property management functions giving the buyer a true turn-key passive real estate investment.

The company has an eight year track record of selling “turn-key” investment property in Charlotte, NC.  Having personally known the owner of the company for several years, I can attest that they are a well run operation that I have seen grow rapidly over the years.

What is intriguing is over 96% of their clients do not live in the same city as the property they are buying which tells me this company has done diligent business with their current and past clients.  This is the reason they tout 194% growth in the last 12 months.

In doing further research on them I have determined there are two opportunities for those looking to invest some money in US single family homes:

1. Invest in the property.  The investor buys a property as outlined above and can earn 11-13% return on investment for cash purchases.  This is mostly passive as the company will handle all property management issues.
2. Invest in a fund.  This is where my firm comes along.  We are in the process of creating an investment partnership that will purchase between 20-60 homes in partnership with the company in Charlotte.  This allows you to spread your risk across many properties minimizing your individual risk.  The minimum investment in the partnership is $50,000usd and the typical cash-on-cash return ranges from 8-11% annually.  You would receive quarterly profit distributions net of all fees and expenses.

If either of these opportunities interests you, please contact us using the form below to receive more information.