Properties in Oklahoma City,
Which You Can Buy At an Investor Discount
“And the Best Part is You Can Buy
Cash Flow Producing Houses for as Low as $40,000”
Hello Fellow Investor,
We both know it’s nearly impossible to get positive cash flow in California and many other markets across the US because the prices are just too high.
My name is Scott Nachatilo, author of Weekend Warriors Guide to Real Estate. I’m here to let you in on a tremendous real estate investing opportunity right in my back yard that has the potential to build wealth for you right now.
Just look at the facts. As you can see, the median price for homes in many metropolitan markets in the US is at least $237,000, and in some areas is more than $600,000!
City
Median Price
Chicago
$244,000
Denver
$237,000
Los Angeles
$541,000
Las Vegas
$290,000
Miami
$279,000
Orange County, California
$627,000
Phoenix
$250,000
Portland
$275,000
San Diego
$535,000
San Francisco
$625,000
Seattle
$360,000
Let’s say you have a mortgage of $300,000 on a 30-year note at 8%. Your monthly mortgage payment is $2200 for just principal and interest. Will the rent you can collect cover your $2200 per month house payment … and your insurance … and your taxes … and your maintenance … and your vacancy? It’s really tough to get even a break even cash flow in that situation.
The prices are just too high and the rents too low.
In addition, the prices in many of these markets are still falling. Is it really safe to keep your money in a market like California right now? Consider that the last housing dip in California began in 1989. It took 11-long years for prices to return to the same level they were in 1989. It may not take that long to come out of the current slump, but, on the other hand, it could take longer, couldn’t it?
Wouldn’t it make a lot more sense to invest in a market that will support positive cash flow and is on its way up?
Fellow investors, take a look at the Oklahoma City market. As far as I’m concerned, the real estate gold rush in Oklahoma City is on, and we’re right in the midst of it here and now.
The median price of homes in Oklahoma City is currently $120,000 and on the rise. Annual appreciation is 3% to 5%, and has been since the early 1990’s. What that means to you is far less risk than having the value of your investment properties drop from major swings in the market.
“Why is the real estate market in Oklahoma City so favorable right now?”
Since the early 1990’s, more than $3 billion has been invested in infrastructure improvements to Oklahoma City. The project, called MAPs (Metropolitan Area Projects), is one of the largest undertakings of its kind in the US. It included improvements to convention centers, the State fairgrounds, parks, the riverwalk, and many, many other projects that have transformed the city.
Oklahoma City was recognized by Inc. Magazine as one of the top 25 cities for doing business in the US. It was ranked #8 by Expansion Management Magazine as a place to locate a business.
Companies like Dell Computer, Boeing Industries, and Tonox (world’s largest producer of titanium dioxide) brought their operations into Oklahoma City because of its talented labor pool coupled with low wages.
The cost of living is not nearly as expensive here as in a market like California. For example, someone earning a $60,000 salary after tax in Oklahoma City could afford to live as well or better than someone earning $100,000 after tax in Los Angeles.
A total of $360 million has been allocated for the I-40 corridor relocation project. This project will greatly improve the look of the area around I-40 by moving the entire interstate highway to a nearby location, and pump a lot of money into the local economy during the project.
Tinker Air Force base, located in the southeast portion of the Oklahoma City metro area, continues to expand as other smaller military bases are closed across the US as part of the BRAC (Defense Base Closure and Realignment Commission) project. When those military aircraft fabrication facilities close down, many of their operations are relocated to Tinker.
Oklahoma City is attracting professional sport franchises such as professional basketball’s Hornets who relocated temporarily from New Orleans after Hurricane Katrina. Currently, Oklahoma City is the preferred choice for the Seattle Supersonics who are planning to relocate to another market and are owned by an investment group in Oklahoma City.
I have been lucky enough to watch this city blossom over the last 15 years, and I certainly expect the favorable economic climate to continue. A solid foundation has been constructed for continued growth.
In a growing economy like this, there is a lot of opportunity in the real estate market. One of the best opportunities is buying undervalued single family homes and small multi-family properties.
What about large apartment buildings in Oklahoma City? Well, 10 years ago I would have advised you to buy apartment buildings in Oklahoma City. Savvy investors from around the country snapped up most of the apartment buildings around the city when they were a bargain. They discovered what I referred to concerning the great economic climate of Oklahoma City. They took advantage of the opportunities when they were available. Now when a good apartment complex comes available there is intense competition for the property.
You can buy single family homes in this market at a low price point that will have favorable rental rates so you don’t have to spend a fortune to make a fortune. You can invest now in below market value properties for as little as $40,000 each so you can get a predictable, steady positive cash flow.
Now, suppose you purchase a property for $50,000 with an 80% loan. The mortgage payment for a $40,000 loan at 8% on a 30-year note is only $293 per month. With rents $500 or better, that leaves room for taxes, insurance, vacancy, maintenance, and management expenses unlike properties in more expensive markets which will definitely give you a negative cash flow.
Image if you had a portfolio of these types of properties that continued to grow in value, year after year.
Does it sound too good to be true? It definitely is, if you don’t have the management handled. That’s the best part of this offer. I know that unless you are supported by a great property management team, you will not be successful in this market.
Here’s why you can count on our management team if you don’t already have management in place:
1.
The management team has decades of experience managing rental properties in the Oklahoma City metro area.
2.
Our companies do not farm out the property management to some second-rate realtor who needs some extra money. We handle 80% of the management in house so we are in control. When we are in control, you are in control. The other 20% are cases in which management is better handled by an outside vender because of the type of property it is, or where it is located. Either way, we are looking for the best managed outcome for you.
3.
If we are managing the property, we will provide on-line access to information pertaining to the property, so you can get up to date information about what is going on for each property on an on-going basis. Once you decide to use our management services, you will get access to our client website.
4.
You may release us as your property manager at any time so that you are not obligated to use us if you decide not to. You can use who you want. That is up to you
.
5.
The management team is run by real estate investors who have their own rental properties. What that means is they have the mind-set of an investor. They have repair and maintenance people who they work with already, so they won’t be calling for a plumber out the yellow pages. They will be able to repairs completed professionally at a reasonable price so you won’t spend all your profits on overpriced contractors.
Here is what some of our clients have said:
“They have managed the nine properties as if they owned them. During that time, the rents have increased by at least 33%, and the equity in these properties has increased to $320,000. I couldn’t be happier with the returns I’m getting on this investment.”
Todd W., Oklahoma City, Oklahoma
“This company has done a great job managing my properties. During the time I’ve owned these properties thousands of miles from my home, I haven’t thought once about selling them because they keep increasing in value. I would recommend that anyone who has properties that need management in the Oklahoma City metro area use their management team. They are the best.”
Bill N., Spearfish, South Dakota
Why am I making this opportunity available? Well, we run very successful businesses, but we rely on infusions of cash from time to time. By selling a portion of our inventory at a discount, we will have capital available to run our businesses. That spells opportunity for you.
Here’s an example of a typical property right now that you could purchase for $55,000. It is a three bed, one bath with central heat and air and 858 square feet of living space. This is an average blue collar neighborhood in the Midwest City area near Tinker Air Force base.
Expected Annual Income
Rental
$7,800
Expected Annual Expenses
Vacancy
- $546
Management
- $780
Taxes
- $626
Insurance
- $400
Maintenance
- $500
House Payment (80% loan at 8%, 30yr note)
- $3,874
Annual Cash Flow
$1,154
(This example assumes you are making a down payment of 20% ($11,000), which is standard for commercial loans.)
That is a 14% CAP rate!!! The cash-on-cash return of this example is 0.105 which means you are getting $0.105 back every year for every dollar you initially invested. But that’s not even the best part.
The best part is when you factor in appreciation. Let’s take a look when you consider just 3% appreciation.
Ownership (years)
Value
(3% Appreciation)
Equity
(For 1 Property)
10X Equity
(For 10 Properties)
Initial
60,000.00
16,000.00
160,000.00
1
61,800.00
18,168.00
181,680.00
2
63,654.00
20,420.00
204,200.00
3
65,563.62
22,760.62
227,606.20
4
67,530.53
25,194.53
251,945.29
5
69,556.44
27,726.44
277,264.44
6
71,643.14
30,361.14
303,611.38
7
73,792.43
33,103.43
331,034.32
8
76,006.20
35,959.20
359,592.05
9
78,286.39
38,935.39
389,353.91
10
80,634.98
42,036.98
420,369.83
*This is not a guarantee of actual results. Actual results will depend upon actual appreciation of the market.
As you can see, if you had 10 of these properties over a 10-year period with just 3% appreciation, that ends up being a lot of equity.
How about 5% appreciation? Well, it’s tough to predict exactly what the market could do, but if in fact the appreciation were 5%, which is more in line with current trends, your equity in 10 years would be $591,000 for those ten properties!
Consider for a moment what it took to purchase those 10 properties. You would have invested $110,000 in down payment money and about $15,000 in closing costs to purchase the properties. That totals about $125,000 all together.
Could you have gotten that kind of equity build-up, cash flow, and tax benefits with a mutual fund? Stocks? Bonds? I seriously doubt it.
You won’t find that level of competition for the smaller properties so that’s why the time is right to take advantage of it now.
“What is the best way to get started?” Well, that’s up to you. You could get started – just try our system to see how it works by purchasing one property. That’s fine. Give it a try. Of course, when you purchase just one at a time, your discount is not as good as if you had purchased a package of three, five, or ten.
“How do you know you can take us at our word?”
“How do you know can really trust us to do what we say we’ll do?” Well, the only iron-clad guarantee I can make to you right now is that if you do nothing, you will definitely not benefit from this opportunity. All I’m asking you to do is check us out – take a look at what we have to offer. Make up your mind for yourself.
Take a look at the property information after you grain access to the web site. You will find comparable sales for each property listed. Of course you will get an appraisal on any property that you put under contract.
Getting started now will give you consistent and positive cash flow, the tax benefits of a long-term hold (like depreciation), and the steady appreciation our market has experienced the last 17 years.
What I am offering you is a turnkey solution for creating even more wealth in your life, so you can enjoy more time with your family and have less stress over your real estate holdings.
To take a look at what packages are currently available, enter your information and you will be taken to the property view page of the web site.
Or if you’re interested in passive income, building greater wealth for you and your family, and need more details, call my office at 405-232-5800.
The website also has more information about our management team so you can judge for yourself if this opportunity is right for you, just fill in the form for access to the web site.
Thank You,
Scott Nachatilo
Author, Weekend Warriors Guide to Real Estate
For The Oklahoma City Gold Mind Group
P.S. - We both know you’re not going to find positive cash flow producing properties that are fully managed in California or other expensive markets for as low as $50,000 per property. So go ahead and give me a call right now or go to the website, and together we’ll make you money.
P.P.S. – Don’t do like so many people do and say you’ll come back to this later. Take this opportunity right now and check out the web site. Right now we’re taking on clients, but that won’t last forever. Be a person of action and at least get all the facts.
