Infinium Properties, llc
The mission is to create affordable home ownership and/or home restoration opportunities for families by purchasing REO properties and/or mortgage notes to be resold, and providing expert mortgage audit testimony concerning homeowners loans. Additionally, deliver investment opportunities that generate sustainable high returns over extended periods of time to the benefit of our capital partners.
The Opportunity -
There exists a glut of foreclosed homes on the market, and the real estate and development industries will continue to founder until the existing inventory of housing has been assimilated into the economy at affordable prices.
Institutional lenders sell foreclosed properties and non-performing mortgages at “bid” prices that are literally pennies-on-the dollar to remove the assets from their ledgers. Infinium Properties' ability to acquire these REO properties through non-standard industry channels is what makes this investment opportunity work.
Market -
The target home buyers are existing current home owners and individuals with credit scores and earnings below the thresholds of loan qualifications by traditional lending institutions. They are qualified based on verifiable employment, an evaluation of credit scores, types of credit issues, and rental payment history.
Increased Equity Value -
The properties or non-performing mortgages purchased will typically be significantly below market value per home or note. The resale value of these properties will be a multiple of two to over four times the cost. This is a significant factor for the success of the investment portfolio strategy, as an investor buying properties for $10M may see his equity value increase to between $20M to $40M. This multiple is the key factor to the delivery of high ROI.
The resale price of the home determines the level of increase in equity value. If the average home sells for a multiple of two to four times its cost and is below market value, the houses are still a bargain and good investment for the buyers. This increased equity base (once established) positions the investment to produce income at an elevated performance level.
Selling homes below market prices, and providing financing for customers, generates income. Typically, financing is with a 15-year to 30-year mortgage note bearing an interest rate of 11% to 6.5%. The interest earned is on the initial investment capital AND the increase in equity value. Additionally, the increased equity value is not out-of-pocket. This reflects the annual interest only, cash on cash returns, and does not include principal payments made on the increased equity-value amount, which add to the total ROI.
