Answers to your frequently asked questions
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What is a private equity company?
A real estate private equity company pools capital from investors to directly invest in real estate assets or related businesses. Unlike public real estate investments available on stock exchanges, these are private transactions. The company often leverages its buying power to acquire properties, manage or improve them, and eventually sell them, aiming to generate returns for its investors. The investment horizon can range from short-term flips to long-term holds. These companies might invest in various real estate sectors including residential, commercial, and industrial properties, among others. The investments are structured through limited partnerships or other investment vehicles, where the private equity firm typically acts as the general partner or manager, making key decisions, while the external investors act as limited partners. The goal is to provide investors with returns above what traditional real estate investments might offer, but this comes with higher fees and less liquidity. -
Can I buyer one of your portfolio properties?
Yes, you can purchase one, or multiple properties that are held in our portfolio. Review the our Assets Under Management and find the properties that are For Sale and let us know you're interested.
If it is not listed For Sale and you are sill interested, please let us know and maybe we can make something work.
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How can I buyer one of your portfolio properties?
There are several ways you can purchase a property from our portfolio. Some of the most common are:
- Cash (Often a better price)
- Traditional or Non Traditional Financing (May take a little longer, but you don't have to come up with as much money. Typically, 25% of the purchase price
- Seller Financing is an option where you pay Heartland Management a down payment and we'll "carry" the loan for you.
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Do I need a loan for the purchase of an investment property?
You don't need a loan if you have the cash to pay for it outright. If you do not then you will need either a conventional or private loan. -
What is owner seller financing?
Seller financing can be a great option for certain properties.
Seller financing, in real estate, is when the seller acts as the lender for the buyer's property purchase. Instead of obtaining a mortgage from a traditional bank, the buyer agrees to a promissory note detailing the interest rate, repayment schedule, and consequences of default. The buyer makes payments directly to the seller based on these terms. This method can be advantageous for buyers who may have difficulty securing traditional financing and for sellers looking for a potential investment or quicker sale. However, both parties assume certain risks, such as default or property depreciation.
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Can I invest in bigger projects?
Yes! Heartland Management is always searching acquiring multi property, or multi family projects.
We are always looking for good investors that want to participate in these projects. Investments can be as little as $25,000 +.
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What is the 1% RULE?
The 1% rule in real estate investing stipulates that a property's monthly rent should be at least 1% of its purchase price to be considered a good investment. For example, if a property is purchased for $80,000, it should ideally generate a monthly rental income of at least $800. This rule provides a quick assessment for investors to gauge rental yield and evaluate if a property might generate positive cash flow after considering expenses.
However, it's a general guideline and doesn't account for all property expenses or market nuances.
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What happens after I purchase a rental property?
After a rental property is purchased you will have a couple different options.
Most buyer's that purchase a rental property will take advantage of the relationship we have with local property management company.
We will introduce them to you to ensure you have all of your questions answered and getting the best rate for their services.