Total Future Cash Inflows =
Amount of cash that should be received from all future payments buy home-buyer/tenants of a property. Can also include resale value if the investor expects to sell the property in the future to another buyer or investor.(Number of Payment Periods Left x Payment Received per Period) + Property Value (If it will be sold)
Visit the Calculating Value in Real Estate Page to learn how to value properties using calculations such as CAPM, NPV, and Capitalization Rate.
Sage Resources Investment Terms & Information
Note & Sale Contract
For this type of property that we are marketing, we pair both the investment property note and the contract to sell the property to a current home-buyer that is in the process of purchasing the home. The investor will gain the rights to all future cash flows, as well as the property in the likely event of the home-buyer walking away from the contract.
Note & Rental Contract
The investor purchases the note to the investment property as well as the rental contract for the current tenant. The investor is entitled to all future cash flows related to the rental contract and the home.
Note Without Contract
Properties listed under this category currently don’t have any sale or rental contracts. The investor purchases the note to this property and is free to do what they please with the property to generate income.
Advantages of the Sage Resources Contract
- Investor is not a “landlord”
- The real estate investor that has advantage that our contracts provide does not have any liability for expenses related to maintenance of the property or property taxes while the home-buyer or renter honors their contract. The contract requires that the home-buyer or renter pay for maintenance, taxes, utilities, etc.
- Very solid contract with maximum benefit to the contract holder.
- Out contracts have been tested and have been proven to be resilient in court. The benefit is on the side of the real estate investor because our thorough contract was created to limit risk.