Who Are We? & How Does It Work?
Who Are We?
We have been buying and selling real estate in the US real estate market for almost 2 years so far. We bought & sold close to 20 deals in a very short time period. In a short explanation what we have been doing is, we find the seller who wants to sell their house and we negotiate the price, lock the deal then sell it to an investor who buys distressed properties and we keep the difference between the seller’s and buyer’s price. That’s how we make our money basically. However in order to make money with these deals, you have to lock the deals super low in order to sell it to an investor. Because all of these investors want to pay 50-60 cents on the dollars for your deals. If you don’t have a huge investor network, you don’t have that much power to negotiate for the price. So that's why we decided to buy those deals under our company and sell them on the open market in order to reach more buyers and sell them for higher prices. It's called Wholetail
Wholetail: Buying properties on discount which require very little or no work and making them move in ready then putting them on open market (MLS) to sell it. More buyers = High price
Basically what we do is, we cherry pick the best deals that require minimum work and provide good profit. We buy them and put them on the market right away after quick clean up and little touch ups to sell it within a couple of weeks. After doing a couple of deals like this, we discussed in our team; why don't we buy more deals like that! We realized there are unlimited off market deals like this but we don't have the unlimited money. That's the reason why we decided to create this micro real estate investment website so we can market these deals on our website and we can partner with people from all over the world in order to close more deals and help people to make money with us. 💸
How does the process work?
We are working hard to find most profitable and minimum work required properties in US market to share them with our community. Once we find one, we get the property under contract then our deal table team is preparing the listing for our investor website. Once the deal live on our website, it'll be available to buy share of that deal with as low as 1000 bucks from all over the world. Investors will receive 50% of their investment as an equity.
Example; let's say we have a deal under contract for $100k. If the investor buy $10k worth of share, they should own 10% equity in this deal in a normal day. However this investor will get 5% equity on this deal.
Math: 50% x ($10k/$100k) = 5%
Explanation: Basically, we are charging 50% management fee on every investment. This should answer the question you might have in your mind such as; how the heck are these guys make money?!? :)
Exit: Let's say we sold this property for $160k in two months after spent $5k for clean up and little touch ups to make the property move in ready and another $5k for other soft costs such as title transfer fee, title company fee, property taxes and insurance during the ownership, agent fee when selling it etc. We netted $40k after all expenses and capital gain tax to uncle Sam. The investor who invested $10k in this deal will make $2,000 profit in 2 months and will receive $12,000 total included their $10k main investment.
Math:
Bought for $100k
Spent roughly $10k (to make the math easier)
Sold for $160k
Gross Profit $50k
20% Capital Gain Tax $10k
Netted $40k
x 5% equity for $10k investment
= $2,000 net profit for $10k investment in 2 months
ROI 20%
How We Communicate?
Our deal table team creates a WhatsApp group chat for every deal we have to be in communication with our investors and our project managers share every single steps that we take on our deals in these group chats. Once you invest in one of our deal, you will be added to group chat of that deal.
Once funding completed, we open escrow account for that deal meaning is we pay the deposit to the title company who will handle the closing for that deal. Then we file NOI (Notice of Interest) to protect our interest in that deal, just in case if seller change his mind and go with another buyer. (These are the details we learned during our journey that creates tremendous amount of value. This is a sort of game and we know how to play this game and we mean it.) Then our legal team creates an LLC (Limited Liability Company) and new business bank account for that particular company. Then operation agreement will be created for the company with all of our investors names included. This is how you earn legal ownership of the property that you invest in. During the transaction our project managers notify our investors from WhatsApp group with pictures and videos from the property.
Rest of the process can be follow from deal trackers located on the property pages.
Click here to see some of our sample legal paperworks
Any questions? Contact Us!