Throughout history, successful investors know that it is best to reduce investment risk by spreading their investments over various types of investments whose cycles and returns are not closely correlated with each other. This is known as investment risk diversification. The easiest way to accomplish this is to place their funds in the different classes of cash equivalents, equities, bonds, commodities and real estate. We have found that in most cases, real estate however is under-weighted in investors’ portfolios due to their lack of real estate experience
Our investors often ask us “Why do you focus on your specific home area?” The best answer is, “Because the numbers work.” Our main focus are homes in the Cincinnati area. They have higher periodic rents, relative to their home values, that are advantageous as compared to other segments of the country. As an example, an investor can purchase a foreclosed home in today's market for 50-75 percent of the current market value and rehab the property with another 10-15 percent and be all in for 60-90 percent of today's market value, which creates monthly positive cash flow and a fantastic exit strategy in months instead of years. The housing appreciation rates in our focus area are stabilizing and, in some areas, starting to rise slowly. However, it is far more economical to purchase and rehab a property instead of buying a property in “average condition”. On average, depending on price differential, there could be savings of 20 to 40 percent. Despite the low housing prices, rents are much higher in our focus area then in most areas of the country. The Tetra Homes Programs targets investment property that the purchase, rehab and all monthly expenses are accounted for, creating instant equity, monthly cash flow and a much greater financial return upon exit of the investment
As you can see, the economics in our core area are clearly favorable for our type of program in real estate investment. The key to investing in real estate lies in careful selection of homes, buying at the right price, in desirable neighborhoods, as well as carefully selecting tenants. At Tetra Homes, we have concentrated on becoming experts in our area, performing the due diligence on behalf of our investors to secure the right homes with the right tenants. We truly consider this a partnership with you the investor, us the manager and the community. This is a truly good partnership where everyone is making a good return.
Tetra Homes’ main objective is to provide our investors with a real estate investment alternative to being on their own for buying and holding cash flow properties with all of the tax benefits of direct real estate ownership without the burden of being a landlord. Due to our expertise in the area of real estate, we have created simple programs that can allow knowledgeable investors to participate with us.
We have 2 main programs that allow us to work with investors. Please click on the buttons below to learn about each program and how they may fit your needs: