We all have habits. One that I cherish is that I read Inc. Magazine every month, cover to cover. I love it, the “Handbook of the American Entrepreneur.” No other magazine, book, class, or even my five stints at different colleges have transformed my perception of business more than Inc. Magazine.
And since I’m a Realtor, and therefore a small business owner, and therefore an entrepreneur, I look to Inc. for ideas, inspiration, heroes, failures and in general just stories that I can relate to and learn from. Not only that, but I’ve discovered some GREAT businesses in Inc. Magazine. Pandora.com for instance. Who doesn’t love Pandora?
Once a year, Inc. publishes the “Inc. 500″ — the 500 fastest growing private companies in America. The companies at the head of this list have realized totally INSANE growth. The winner this year, Northern Capital Insurance, realized a 3-year growth rate of 19,812%. No, that’s not a typo.
What inspired me to blog, though, was No. 3 on the list, a company called Harley Stanfield. I was inspired by the story because Harley Stanfield is a residential real estate investment company. Basically, they flip houses.
Here’s the business model… basically:
- Buy a residential home in need of remodel in a college town, like Bellingham.
- Remodel it with an emphasis on making it more energy efficient, so it’s better for the environment and cheaper to operate.
- Sell it to any one of a pool of investors with these terms:
- Investor has a minimum FICO score of 700.
- Investor puts up a minimum 25% down payment.
- The property is guaranteed to be rented and have positive cash flow within 30 days of closing, and…
- In 5 years, if Investor wants, Harley Stanfield will buy it back for its original value.
And with that model, this company is the 3rd FASTEST GROWING PRIVATE COMPANY in the U.S. of A. Now THAT is a testament to the power of real estate as an investment.
I work with some investors, helping them find, buy and manage income-producing properties just like those Harley Stanfield is peddling. I own one myself, and am working on #2.
Some people think you have to buy commercial property or that you have to pay cash for income producing property. Wrong. Banks will loan money to buy rental houses, 2-, 3-, and 4-unit properties all day long. Ther terms are different than if you, the owner, occupy it yourself. But it’s happening every day, and Yes, it pencils.
I have clients in Bellingham who own literally DOZENS of rental properties, and they generate literally tens of thousands of dollars each MONTH in income. And they started with just one.
If this sounds interesting to you, and you’d like to know more about building income and wealth with investment properties, e-mail me at brandon@nwhomes.net. Your goal may not be to make the Inc. 500 anytime soon…. but then again…!
