Residential Redevelopment

(Buy, fix and sell)

Buy and hold

Currently many homeowners are facing increased mortgage payments due to their adjustable rate mortgages ballooning in recent months. Some owners have fallen behind on their mortgages and their houses are falling into severe disrepair. Facing impending foreclosure and still struggling to make ends meet, most homeowners choose to let their homes go into foreclosure, although that is the worst solution they could possibly have. VGA INVESTMENTS is actively seeking distressed homeowners in order to work with them and avoid foreclosure by working out a win-win arrangement allowing them to move on without such a negative impact on their credit history. Most of the time the best solution is to purchase the property at a discount due to the degree of disrepair the house is currently in. VGA INVESTMENTS then strategically rehabilitates the property in order to bring it back to market value. The subject property is then sold at 5-10% under market for a quick exit strategy.

In any given time in the United States there are 20-25 cities or towns considered emerging markets  (Yes! Even in today's market). VGA INVESTMENTS is constantly doing research to figure out where the next emerging market is going to be in order to acquire low priced properties, rehabilitate them and hold for rental income and appreciation. In some areas, the rent-price ratio has even increased during the past two years and rental properties in these areas are yielding 10% returns or higher.  It is in these towns that we seek opportunities to implement our BUY AND HOLD strategy. Since real estate is a local business, we look for cities, towns, neighborhoods and even streets that show positive signs of recovery.

We pick and choose which towns to invest in by researching and qualifying them by the following criteria:

•  High number of foreclosures
• Good school systems
• Economy
• Job growth
• Population growth
• Affordability
• Low crime rates
• We look for properties with potential value adds
• Large square footage with potential to add a room or bathroom
• Ugly houses in good neighborhoods
• Distressed properties

Some of the criteria we evaluate are the following:

• Job growth
• High rent/price ratio
• High cap rates (above 10%)
• Low crime rates
• Market cycle