American Real Property, LLC
American Real Property, LLC. is a distressed real estate investment company with the initial focus on affordable single-family housing, specifically the Single Family Housing market. The Company invests the proceeds from investors fund to acquire distressed REO single family properties. These real estate portfolios are VALUE-ADD and OPPORTUNISTIC residential properties that typically consists of the acquisition and or redevelopment of Single-family DISTRESSED ASSETS through REO’s from Banks, Private Equity Funds, and Government Agencies in Georgia and the Southeast States. The Company services primarily as an asset management firm in implementing the acquisition, renovation, property management and disposes the value-add assets to first time home-buyers.
First time Home-buyers demand and supply supports repositioning
The proposed extension of the tax credit for home buyers, which the Senate cleared for passage, is likely to motivate first-time home buyers twice as much as current homeowners to buy a home, according to results from the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions released 11-04-09.
In addition to extending the current $8000 tax credit for first-time buyers, the Senate legislation adds a new $6500 credit for existing owners who buy a new primary residence before June 30, 2010. Both the first-time buyer extension and the “move up” buyer credit for existing owners would take effect December 1, 2009.
The first-time home buyer tax credit would do more to defray the purchase price of a starter home than the move-up buyer credit would do for existing homeowners buying a new home. The $8000 first-time buyer credit represents an average of four percent of the home purchase price for first-time home buyers. However, the $6500 move-up buyer credit is worth only about two percent of the average purchase price for current homeowners who want to buy a new home. Survey results show that the average price for homes purchased by first-time home buyers was $186,000 in the third quarter of 2009. In contrast, the average price for current homeowners buying a new principal residence was $309,000.
ARP is operating a single-family acquisition, construction and rehabilitation program that targets low to moderate income families in Atlanta Metro communities. This program repopulates the completed homes (to include townhomes) with low to moderate homeowners who provide the following for private financing for 90 days thereby improving the credit scores to mortgage-ready FHA loan status:
- Must have a credit score of at least 550
- Two current paystubs
- Two current bank statements
- If self employed, last years filed Schedule C
- Copy of drivers license
- Letter of explanation for all 30 day or more delinquencies on credit report
MARKETING AND SALES STRATEGIES
The marketing and sales stage of the program will begin in advance of the acquisition and rehabilitation process. Our asset management team ( AMT) will initiate informational meetings and distribute program information to the area brokers , churches, VFW posts, local GA Army and Air National Guard Units, banks and credit unions, local and regional non-profit housing groups, county and state employees, school district employees and other targeted prospective buyer markets. The marketing initiatives shall be comprehensive and market specific to generate buyers in accordance with ARP’s guidelines. Specific attention will be devoted to our user-friendly and informative website and unique yard sign identifying the program’s properties. The website will be independently hosted and will be linked the various housing programs website, Lenders regional offices, and D&E housing counseling agency.
A proposed targeting strategy of our marketing initiative shall involve local public safety personnel and teachers. This strategy is a pivotal element in that it addresses several critical elements of the program. One, it provides a highly qualified source of potential buyers and two, their presence in communities are generally perceived as positive stabilizers, and three, in an environment of challenging economic conditions, it gives the local government a chance to highlight the contributions of these individuals through an indirect but highly effective financial means.
The provision of these external financial resources for housing should be an excellent recruiting tool for the local school district. It also leverages the program with existing special financing programs such as the Georgia Dream Homeownership Program.
Pivotal to the successful marketing is the ability to identify and qualify home buyers, and more importantly, to be able to consummate the sale with prospective buyer. To address this critical element of the program, we have teamed up with the regional office Chase Mortgage. Chase Mortgage, a national leader in affordable housing lending, brings a number of services and tools to aid the prospective home buyer. Chase Mortgage is taking an industry lead in foreclosure prevention with the opening of its Home Ownership Centers across the country. The regional office is located in Atlanta. Chase Mortgage understands the current crisis and is prepared to partner with developers find solutions to the challenges.
ARP will engage in a multitude of one-on-one and community meetings to apprise the lending community of affordable housing initiative. Community housing fairs and homeownership workshops will be routinely scheduled throughout the implementation of the program. We will generate monthly marketing and sales report to measure performance under the program. Specific and verifiable data shall be maintained on the marketing events and prospective buyers for lead developments.
Critical elements of our Asset Management Team Marketing & Sales Program:
- Properties will listed on GMLS, FMLS, other marketing resources as directed by our real estate broker.
- Properties will also be marketed extensively through the ARP dedicated website, with links to our selected lenders.
- Properties will be presented at community housing fairs, FHA seminars, homeownership workshops, etc.
- Participating lenders will market our properties to their clients.
- ARP Asset Management team and its staff will meet monthly with local realtors and lenders.
HOME BUYERS COUNSELING SERVICES
Specifically, ARP will utilize services of D & E Housing Counseling Agency, a HUD Approved Counseling Agency that has both the capacity and the demonstrated success to provide housing counseling to program participants. ARP has formed a strategic partnership with D&E to provide qualified home buyers.
D&E has successfully developed and implemented a plethora of Affordable Housing initiatives, to include but not limited to: Homebuyer Education Seminars, Homebuyer Clubs and Lease Purchase program designed to assist hopeful home buyers realize "The American Dream" of homeownership.
Through our partnership, D&E will deliver comprehensive community home buyer awareness seminars and home buying clinics targeting LMIB’s and LMIG’s.
Leverage relationships with other local non-profits, housing counseling agencies, and network of churches to create partnerships and promote FHA and other Affordable Mortgage Program. & Down payment Assistance Program and other home buyer assistance programs (i.e. NSP, DCA etc.) which will increase the number of affordable homes purchased in low-to-moderate income geographies (LMIG’s) and low-to moderate-income borrowers (LMIB’s)
Through the Affordable Housing Initiatives participants will learn how to:
a) Accumulate funds for down payment programs offered by financial institutions, credit unions and other housing agencies;
b) Resolve credit difficulties;
c) Budget and save for a down payment and unexpected expenses;
d) Get the house they can afford based on their personal finances;
e) Shop for and negotiate a quality affordable home;
f) Adequately prepare home buyers for Closing;
g) Maintain their home after they move in; and
h) Avoid Predatory Lending.
The AGENCY will provide follow up one-on-one sessions during the term of the initial purchase of ARP properties, and that have already been approved by ARP properties. The proposed monthly one-on-one sessions, 1 hour per month, per purchaser will include at a minimum:
a. Use the Homebuyer Financing Plan as a tool to evaluate and address each resident’s barriers as well as the progress (or lack thereof) towards conventional mortgage qualification and subsequent loan closing.
b. Review the Plan step by step with the client, and prepare a report that describes progress on the Plan’s performance objectives.
c. Submit the report “Summary of Plan Progress” to ARP for review, feedback, and files.
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