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How to Invest in Real Estate
Chattels Real, LLC purchases real estate and manages the real estate. Our investors participate in the profits of the buying and selling of real estate with the managing entity. The owners of Chattels Real, LLC often times do have their own capital in their Real Estate Investments. Chattels Real, LLC will purchase properties for short term holding (1-3 yrs) with the Tenant/Buyer having 15-20% or more equity in the purchased property. Chattels Real, LLC will buy the homes for the tenant/buyer client at a fair or better than fair value.
Investors in Chattels Real, LLC spread their ownership over several properties.
Chattels Real, LLC will not lend on a property for more than 85% of the value of the property. This benefits the investors by minimizing risk due to the higher than normal equity buffer in the property. The Tenant/Buyer will buy and finance the property from Chattels Real, LLC within (1-3yrs). Chattels Real, LLC is not designed to accumulate property and hold it in hopes that the property appreciates. Chattels Real, LLC and their investors will lend the money and hold a first lien on the property as opposed to managing the property itself like a rental. Management comes into play only if Chattels Real, LLC has to foreclose on the lien and take possession of the property to resell it. In this case the investors will still make the profits on the lien of the property.
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