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Property Investments

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LX Financial is a property investment and finance company
We invest in high profit, quick turnaround projects

No one knows when real estate markets will rebound, but many people are looking for the good deals that are out there. The best opportunities are foreclosures and short sales - REO: "Real Estate Owned" properties - in need of repair, that can be purchased for 10-50 cents on the dollar.

In some ways the market has never been better!..... BUT the right properties are difficult find, buy, finance, renovate, and re-sell or refinance. The truth about property flipping is that go it alone strategies often take too long and mistakes are easly made, both of which can seriously erode profits, or even cause a loss! We make mortgage-secured REO investments in carefully selected projects with all the elements in place for a high-profit, and quick exit.

Our approach
Developers present us with opportunities every day. We invest in the right projects based on the following overarching principles:

1-4 unit residential properties only (2,3,4-units preferred)
A capable developer
High profit potential
Resale viability
Rental viability (so we can bank re-finance for long-term hold)

Investment criteria
Project viability and risk avoidance comes first - return on investment second. The investment rarely exceeds 60% of the after repair value of the property. The exit strategy for every project is either a refinance (based on enhanced value), or sale to an end-buyer. A sales contract with a pre-qualified end-buyer is often in place before a project is even started! Here are some typical criteria investment criteria:

Investment amount: $10,000-$200,000
Investment and profit share fully mortgage secured
Your own attorney can handle the transaction. (Fees paid by the developer)
Interest rate: 8-16%
Profit share: 5-20% of projected profits.
Effective return on investment (ROI): 20-40%+
Project time: 1-6 months usually

There is no pooling of funds so each investment operates under the premise of one investor (sometimes multiple investors organized under an LLC) - one mortgage. This is a great way to invest in today’s real estate market. And it is definitely better than direct investment and property ownership, currently a much riskier proposition. You can add yourself to the mailing list here to receive updates and potential investment opportunities from time to time.

Use of an LLC
Developers typically create a new LLC for each project we fund. It is recommended investors do the same (an LLC, no other type of company) because it offers flexibility, ease of administration, accounting, and legal matters. It is also a good vehicle to pool funds among people who invest as a group. Forming an LLC is simple. You can do it online here.

Home Equity Line of Credit (Heloc)
Some investors fund their loans using the equity in their homes with a "Heloc" (Home equity line of credit). A Heloc can be a first or second mortgage, and allows you to borrow and repay at will, providing ultimate flexibility. Rates are floating and are currently in the 4-6% range.

Invest with IRA
There are many IRA custodians across the US that handle self-directed IRA’s and are familiar with this type of investment, like Equity Trust. You can utilize all forms of retirement plans including Keogh’s, Profit Sharing Plans, etc.

Watch "Smart REO Investing"

LX Financial LLC | 1 Harborside Place #749, Jersey City, NJ 07311 | P: 201-918-5443 | F: 866-839-1337