A: That's it. All you need to participate is a credit score (FICO Score of at least 700 or higher, $70,000 or more combined household income with supporting documents for the lender, and you can participate with no cash out of your pocket.
Q: Can't I participate if my score is less than 700?
A: It depends on a lot of factors. We have had people go through and purchase properties slightly under the 700 threshold, but the lender may require other documentation, etc. Ultimately, it is the lender who makes the final call.
Q: What kind of supporting documents are required?
A: Nothing more than the standard documentation for any mortgage.
Q: What are my costs?
A: While there is a $3000 program management fee for each property, this is typically paid by the selling agency, and all new clients receive their first transaction FREE regardless. Plus, Credit-Investors Who purchase multiple properties at one time have this fee paid for them on each property. That means absolutely NO COST out of your pocket to begin investing hands-free today. The independent property management company typically charges 10-15%, but this comes from rental income, not an upfront fee.
Q: What's the catch? Is there a long-term obligation?
A: It takes no cash, you do nothing, the company does everything, and you get all the net profits from the rents and the final sale. You begin with 15-20% equity and immediate cash-flow, and your mortgage payment is guaranteed for the first full year if it's ever vacant! You have complete control --- it is your property. You can sell it, cash out or end the management contract at any time with no penalty from us. Or, keep getting the rental income as long as you want. You can use the designated property management company to manage it, and have your mortgage payments guaranteed, or you can use a different company or even manage it yourself. There is no obligation to begin, none to continue, and no obligation to do any other deals, ever (although you will want to!)
Q: So I can cash out at any time, or take it over if I want?
A: Yes. You can do whatever you want with the property, with no more limitations than any other investor property. It is yours, not ours.
Q: What about insurance? Taxes? Utilities?
A: As with most mortgages, fire and damage insurance are included in the monthly mortgage payment, covered by the rent. We often have tax abatements because of the extensive work we are doing in each community, but if not, taxes are normally escrowed at closing and included in your monthly mortgage payments. As far as utilities, each community is different, but generally either your tenant will pay for these separately, or you will include their costs in your rent.
Q: So why do you need me?
A: We can't do it alone! City Capital's focus is on providing affordable housing for working-class families. Credit-Investors free the company's cash reserves for upfront costs associated with large-scale programs, such as acquisitions and renovations, to create more affordable homes for more families in more cities. The company's profits come primarily from their negotiations with city and community partners. They put back a portion of their profits into the local community through local programs such as at-risk youth training and first-time homeowner classes, and by using local contractors and other professionals. The $3000 program management fee paid by the selling agency offsets some of the program's other costs.
Q: How soon can I get into a house and make money?
A: After you contact us and complete the initial application, you will have a brief interview with a loan officer. After that, we must receive all of your support documents to lock in your position in the Property Acquisition Queue. From the time you are approved and in the Queue, it could take as little as a week or as long as 60-90 days to be matched with a property or properties, depending on your position in the Queue and the property inventory at the time. Those who elect to do multiple purchases are, of course, placed in a smaller, often faster Queue.
Q: How many houses can I do? How much can I make?
A: You may invest in up to 6 homes each year, based on your credit and income. Some Credit-Investors choose to do several at one time, and avoid all program management fees. Your profit depends on the property, and we give you a detailed analysis on each in advance. We make sure your property will cash-flow at closing, but don't look to live off your rents! Remember, these are affordable homes, not cash cows! Your rent should cover normal operating expenses with some left over for any repairs along the way. Buying with 15%-20% equity (based on the lender's appraisal), our recommendation is to buy your homes with more than a short-term gain in mind.
Q: What kind of homes are these? Where are they?
A: We primarily do renovations of existing two, three and four bedroom homes, in areas like Kansas City, Detroit, Cleveland, Warrendale, Memphis and other relatively stable urban areas with modestly-priced homes. These are usually in older, established neighborhoods that suffered during the flight to the suburbs, but are now located close to economic centers, shopping and jobs, and just need a company or group with a vision for renovating communities on a large scale to revitalize the market.
Q: So, are these inner-city slums or project houses? Are these like "slumlord" properties?
A: City Capital does not engage in properties that fall into traditional "government project" or "slumlord" categories, nor are these homes in the kind of stereotyped "war zones" the press usually shows. In fact, most government "projects" have proven tremendous failures and created many social and family issues. Cities look to us to renovate existing single-family homes to create new value and a viable tax base in these prime urban areas. In every case, city and community partners have targeted areas -- usually within municipal boundaries or city limits, sometimes outside of the city itself (but not far-flung suburbs) -- where they need affordable worker and family housing. Most are scatter-site developments of dozens or hundreds of homes. The fact is that that "slumlords" and real estate flippers don't like to see us coming, because we raise the expectations of the working-class, blue-collar lower-middle income families for high-quality affordable homes with dignity!
Q: Are these government subsidized house?
A: Although in some cases HUD Section 8 or Housing Choice Vouchers may be used by tenants, City Capital does not generally pursue subsidies other than through local incentives and community partnerships. Most of these homes are priced so working-class families can afford them. Most of the homes are rented first, and we cannot and will not allow discrimination against qualified tenants, including those who pay with Housing Choice Vouchers. These are actually excellent prospective tenants, as demographics show this market typically remains in a lease much longer than the general population
For those not familiar with the Voucher program, essentially the U.S. government guarantees your payments, and sends the payment directly to the management company. As an additional benefit to the owner, Section 8 tenants are required to stay at least one year, and cannot break their lease without the owner's permission. If they do, or if they are identified as "problem tenants," they or risk losing their right to take part in the voucher program entirely.
For many tenants however, the objective is to ultimately do either a lease-to-own or "season" their credit through regular rent payments, so they can qualify to buy the home in the future (unless the Credit-Investor is only interested in a long-term rental property). Our national partner City Capital works closely with the city and our local partners to get renters and buyers approved on the homes, so the investor can cash out and hopefully reinvest again, and the family can become owners instead of renters.
Q: What do you mean by "affordable homes for working-class families?"
A: Many new homes today are simply outside the price range working-class families can afford. By some estimates, there is a 15-year backlog for homes that fit this category. This is a huge market need in every city across the country, and one that is largely not being addressed by most developers. That is why we have a ready market for families for these homes, and why when we go into an area we are able to create entirely new markets by bringing new value into these older neighborhoods and communities. And our Credit-Investors share the benefits of this added value in each market.
Q: But can't you make more on bigger, more expensive houses?
A: Possibly, but that is the most overbuilt market in the country. Supply and demand means that the pricier houses, built to make the most money per house, are also the ones most affected by market bubbles and bursts. The Community Renaissance process literally "creates" new markets, by creating more added value in communities than before. City Capital's Mission Statement is "Socially-Conscious Investing To Empower Urban Communities." Their philosophy is that making quality housing more accessible for workers and families, as homeowners, is the basis of building thriving communities. Credit-Investors are investing for profit, while becoming the instrument of change for families. Because each Credit-Investor can do up to 6 houses per year (depending on credit and income), there is plenty of profit to be made in socially-conscious developing... and the Credit-Investor does NONE of the work!
Q: How risky is this?
A: While no investment is "risk-free," real estate is historically one of the safest, because it is secured by "real" property. Credit-Investors in general have fewer risks than lone investors. City Capital's municipal partners often provide us with entire blocks of property, and waiting lists of pre-qualified renters and buyers. This gives an extra "cushion" against market swings or "bubbles." We share these benefits with you as immediate equity in your property and 100% of all net profits - from rents and resale. Plus, your mortgage payment is guaranteed paid for up to 12 months if the house is ever vacant. No private investor enjoys any of these advantages.
Q: How will this affect my credit?
A: Any major purchase makes some impact on your credit, especially right after any major purchase. However, since each property is income-producing, it should create less effect than other major purchases. Many of our clients qualify to make multiple purchases at the same time. Plus your mortgage is covered for any month the house is vacant during the first year. And your information is only used with your permission by City Capital, our lenders and partners.
Q: What if I want to invest cash, or rollover my IRA or 401K for tax-deferred investment?
A: We have a number of programs for cash and rollover investors, depending upon how much you have to invest. Contact Us for more information on these other programs.
Q: What are my next steps?
A:
- First, complete and submit the Credit-Investor Application
- Contact Us for a pre-interview and to get any other questions answered
Then
After City Capital has received your application and completed your pre-interview, you will receive a packet with full instructions and checklists of documents required. You can go ahead and begin gathering the supporting documents now if you want. They include:- Copy of your drivers license
- Last two years' tax returns and W-2's
- Last full month's pay stubs
- 3 months' bank statements (all personal, business and investment accounts)
- List of any other income sources (retirement, social security, child support, etc.), and any other real estate
- Return the completed packet and submit with the support documents. All documents must be received before Client may be added into the Property Acquisition Queue.
Q: Who is City Capital?
A: City Capital Corporation (CTCC) is a publicly-owned company engaged in leveraging investments, holdings and other assets to create self-sufficiency for communities around the country and the world. City Capital manages diverse assets and holdings, ranging from urban revitalization programs to biofuels development and more.
City Capital puts as much as 40% of their profits back into the communities themselves in the form of training programs, and local community initiatives. The company's practical development and redevelopment programs employ local solutions, and return significant amounts of profit to the local communities, who in turn often grant generous incentives and cooperation to accelerate projects. City Capital consistently delivers, and has been called a "Proven Market Maker." By literally "creating their own markets," the company generates significant returns for its cash and credit investors.
As a result of their national Urban Wealth Tour and the high regard CEO Ephren W. Taylor II holds in the national affordable housing picture, City Capital is often requested to come into a city and effect "community renaissance." Their team meets and establishes relationships with government and community leaders, economic development groups, community development corporations (often owned by churches or other non-profits), contractors, property managers, financial sources and other service providers. Together they identify target areas for revitalization, convenient to local businesses and shopping, business districts and corporate headquarters, and public transportation. They also look for good, family recreational facilities such as parks and swimming pools, and select local programs to support, such as new homeowner training and at-risk youth programs. The company negotiates available incentives such as property tax abatements, infrastructure improvements, block grants and other resources with city and community leaders.
Private real estate investors naturally look only at how much profit they can make from individual home purchases, and not a long-term, bigger picture of community change. City Capital believes that a for-profit corporation can and should do the kind of work that non-profits do, and that corporate profits allow this on a much larger scale. City Capital’s vision is to create affordable housing for working-class families by utilizing and creating unique opportunities for “Socially-Conscious Investing To Empower Urban Communities.” One of the ways this is accomplished is through the Credit-Investor program.
The company makes sure each home is renovated to our stringent guidelines. These include items such as new plumbing, green improvements such as new energy efficient furnaces or heat pumps water heaters and appliances, and energy-saving double-pane windows and insulated steel doors. Whatever needs to be done is done, depending upon the area and home, to make it right from day one for Credit-Investors, tenant families, and ultimate homeowners.
15-20% of the equity in the property is passed on to you, as well as a qualified tenant and cash-flow from the beginning, and they still guarantee your mortgage payment for the first full year if it’s vacant any month. And you keep 100% of the net rental and net resale profits.
The value of the home is based on the independent lender’s appraisal process. Individual investors alone, without any baseline community or local government support or incentives, cannot create the kind of positive community changes required to sustain positive market changes. There is no crystal ball as to future value of your property, but only a master plan approach such as this can effect the kind of dramatic changes described. Only by going in with the intention of completing dozens and dozens of quality, affordable homes for blue-collar, hard-working families, can an area undergo a “community renaissance.”
Everything possible is done to ensure that, at resale, Credit-Investors have a piece of a much bigger vision, and get to share in the profits of our overall success along with the community and families involved. And then do it again. And again. And again.
You can learn more about City Capital at http://www.citycapcorp.com/
Q: Who is Ephren W. Taylor II?
A: Should corporations be actively engaged in turning the tide of urban community decline? Are the concepts of creating affordable housing for working class families and nationwide urban renaissance at odds with corporate profits?
City Capital Corporation’s (CTCC) CEO Ephren W. Taylor doesn’t think so. Unlike many corporate powerhouse CEOs, Taylor focuses on socially-conscious investing and development while making profits for his investors. Although his approach has been compared to a national non-profit, but as a profit-based enterprise, City Capital is able to invest and reinvest in communities and projects across the country. Ephren Taylor is considered a “high-performance visionary with the ability to make things happen, when nobody else can.”
His company’s model of “Socially-Conscious Investing To Empower Urban Communities” has been recognized for its success by government and community leaders in cities across America. Some people think this should be left to non-profits, but City Capital is proving a for-profit, public corporation can go in, bring in the investing power of hundreds, even thousands of investors, and create a renaissance within a community by renovating hundreds of homes. And making a fair profit. And reinvesting those profits again and again, in more families across the country.
Taylor created these concepts unique approaches to development and investment as a teen, and was honored with the Kansas Young Entrepreneur of the Year award as a result. He has been recognized as America’s Youngest African-American CEO of any Public Company. Today he is a weekly commentator on financial and housing issues on FOX News and other national media including CNBC’s “Big Idea,“ “Your World with Neil Cavuto,” “Bulls and Bears,” the “Tom Joyner Morning Show,” the “Doug Banks Morning Show,” “Montel” and many others.
Taylor’s Urban Wealth Tour visited 18 cities in 2007 presenting his economic empowerment message to thousands across America, bringing together educational, non-profit and government leaders to create positive change in urban communities. Many new community opportunities have resulted, new local key contact relationships established, and new prospective investors attracted to the company through the Tour.
He has served as keynote speaker for dozens of colleges and business organizations; as a frequent guest panelist for events such as the Wall Street Economic Summit and the Congressional Black Caucus, Future Business Leaders of America-Phi Beta Lambda and many others. Taylor’s message to young people from coast-to-coast is one of empowerment and self-sufficiency. Even as he delivers this message to standing-room-only audiences on his Urban Wealth Tour, he is opening doors of partnership and opportunity with municipal, state, community and corporate representatives in each city. Many new community initiatives have resulted, new local key contact relationships established, and new prospective investors attracted to the company through the Tour.
Notice and Disclosure: The information displayed above is based on estimates. The estimates shown herein are based on past performance averages and information available from third parties that is assumed to be accurate at the time of this publication. Due to the nature of investment property, the variables may change. Some of the variables may include interest rates, expenses, rental rates, tenant quality and availability, and market tolerance. It is up to each individual investor to do their own due diligence on all subject matter relating to real estate investing and the above mentioned property. Information is deemed reliable but not guaranteed. Buyers should verify all information.
This property information is being presented by Mercury MultiMedia Inc. Mercury MultiMedia Inc. does not control the accuracy of the information displayed here, is not the publisher of the information, but acts solely as the distributor for its participants.
