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Who We Are

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  • Joint Ops Properties owns over 100 rental units in the greater St. Louis area
  • Service Academy Graduates and 1 Civil Engineer
  • Entity has existed for two years
    • Principals have been investing in real estate for a combined 20 years
    • We have been buying a minimum of 5 to 6 properties every month for the last year

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Track Record

  • Income – $70,000 gross per month and growing
  • Investments – Single Family Homes in St. Louis, Missouri with 1000-2500 square feet.
  • 100 units as of March 1st, 2016
  • Zero defaults to date out of 120 private money loans

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THE PROCESS

Joint Ops purchases property at 30-50% below market value

Property is renovated and put into marketing system

Lease to own tenant signs a one to two year option and pays at a minimum 3k for right to that option and signs up for credit counseling

Tenant buyer acquires occupancy permit

Once occupancy permit is acquired, we go to a commercial lender in order to refinance the property.

Once commercial loan is in place, investor’s money is returned or invested into another property

Private Investor sends purchase + repair money to title company

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Example Projects: Brotherton

Investment from private lender: $30,000

Market Value of house : $65,000

Income: $3,000 Option Depsosit + $900/mo rent

Expenses: $176/mo (taxes and insurance)

Cash Flow before debt service: $724/mo

ROI: 32.2%

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Example Projects: Mohan

Investment: $75,000

Market Value of home: $155,000

Income: $7,800 Option Deposit + $1500/mo rent

Expenses: $260 (taxes and insurance)

Cash Flow before debt service: $1240/mo

Equity: $80,000

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Joint Ops System

  • We buy distressed property at 30 to 50 cents on the dollar
  • Exit Strategy is solely Lease-to-Own
    • Huge Demand – 10x buyer pool vs mortgage qualified buyers
    • Cash non-refundable deposit upfront
    • Higher quality tenant
    • Eliminate maintenance and management costs
  • Private Money Loans
    • 1 Investor for 1 Property
    • All loans are secured by the Real Estate (Note and Deed of Trusts)
    • Investor is names as additionally insured on Hazard policy
    • All Funds handled by 3rd Party Title Company with title insurance

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Why Saint Louis

  • Extremely affordable prices
  • We are still buying houses at 30% to 40% of sale prices from 8 -10 years ago
  • Missouri is a Landlord friendly state
  • Stable Rents

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Loan Structure

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  • Two options on structure
    • Lender receives higher fixed interest rate over a defined period of time
    • For Lenders that want to participate in the equity play: Lender receives lower fixed interest rate and percentage of the final sales price with a three year term and 90 day call back for the principle
  • All loans are collateralized
    • 1 Lender - 1 Property
  • If Joint Ops refinances the loan; the lender has the option to roll the money to another property

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Why This Investment

  • Dislocated markets
  • Increased economic regulation is showing itself through increased fees
  • Current returns are struggling even for risk adverse investments
  • Banking is taking closer looks at negative rates
  • Investors are sitting on the sidelines and converting their investments to cash due to avoid an inconsistent market
  • RoR are higher than most investments, consistent and collateralized
  • Principal investment never fluctuates
  • No Fees
  • Can invest IRA funds
  • Can invest cash value of life insurance policies

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Thank You