Tier One Property Investor
Tier One Investors are those who wish to invest in Stark Equity Group itself and to participate in all real estate investment opportunities. These investors face greater risk, but also see greater rewards.
Minimum initial investment: $50,000-$250,000
Requirements: Net worth of $250,000 in total assets after current liabilities
Credit score of 650-850
Interest paid: 3.75% per quarter or 15% annually
This investor will hold title (from 30 to 120 days) or a security note for the property until the transaction is completed and the property is sold. Investment properties will be bought at the courthouse itself or from the bank which foreclosed on the property.
Tier One Gold Level
Minimum initial investment: $500,000
Requirements: Net worth of $500,000 or higher
Credit score of 650-850
Interest paid: 20% APR annual guaranteed rate of return
All investors exceeding $500,000 in foreclosed purchases will be paid 5% quarterly or 20% APR annually. All investments cashed outside of the scheduled dividend periods will be paid at a flat rate of 10% APR annually.
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Tier Two Property Investor
Tier Two Investors are those who wish to use Stark Equity Group's contacts and consolidated purchasing power to find profitable opportunities in real estate investment. These investors (typically Realtors, contractors or second-home buyers) will face more conservative risk and will not have a stake in the company.
Minimum investment: A minimum down payment of 10% and some closing fees may be required at closing
Requirements: Net worth exceeding $100,000 in total assets after current liabilities
Credit score of 625-850
Interest paid: Because of the options available for resale and/or rental income, Stark Equity Group does not guarantee a specific rate of return to Tier Two investors
These investors will purchase 3- to 5-bedroom, low-risk, single-family homes from Stark Equity Group or its Tier One investors. No condos, town homes or land properties will be purchased for this program. All properties will be acquired from selected zip codes and locations with strong resale activity.
Tier two investors will receive financing from a qualified bank or mortgage institution through a Stark Equity Group qualified broker. They will have the opportunity to buy foreclosed properties with an average 20-25% discount off market value. These remodeled properties will then immediately be put up for sale with our residential resale department and will be sold to home buyers for the hard cost, plus a fee of 8.5%. All other applicable remodeling and city tax lien fees will apply. Typically, these prospective buyers will have $25,000 to $60,000 in property equity the day of closing.
Targeted Profit: Our target will be $10,000-$25,000 of gross profit per transaction. Due to the process and time savings obtained, Stark Equity group's broker will give a 1% rebate towards all closing fees on property sales. Renting the property for passive income will also be a second option, when 150 days of your discounted listing has passed. Projected time of resale will be 60-120 days.
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