Landlords /
Investors

Landlords Have No Friends

Tenants- No – Most Relationships One Sided – Terrible
Lenders – No – Never-Never Land of Loans – Difficult
Tax People – No – Can’t Wait to Get Profits from Sale
Governments – No– More and More Regs – Federal, State, Local
The Press -No – Portray Landlords as Villains
Relatives – No – Few Like Time and Effort Necessary (See Tax People)

Many “Experts” believe that Investments that require constant and regular contributions of cash and time be shunned. Yet over eight million Landlords own over 72% of residential rental properties – over ten million properties.
Few Landlords realize that the Investment is based primarily on Equity Creation – Appreciation and Loan Decline – Not Income Generation.

Many Landlords simply fail to address the impact of negative cash flow and rarely compute their break-even when calculating their return.

The Top 7 Issues

High Turnover Rates– Very Costly
Late Rent Payments– Chasing Tenants
Legal Troubles– Pro Tenant Laws and Regulations Growing
Staying Organized– Can Cause Stress and Legal Problems
Frequent Evictions– An eviction is a stressful and costly process.
Excessive Stress Over Property Management Responsibilities
Relationships with Family and Heirs – Low Interest in Continuing

The Landlord's Prayer

“Please Grant Me”

A Way To Get Friendly, Responsible Long-Term Tenants – No Vacancies
No More Tenant Confrontations / Hassles
No More Surprise Property Expenses
No More Dealing With Regulations And Attorneys
No More Emergencies On Holiday Weekends
Someone That Actually Cares About Keeping The Property Up
Some Way To Generate Tax-Free Cash From The Property Without Borrowing
Time To Spend As I See Fit Instead Of As A Perpetual Baby-Sitter.

“I WANT TO STAY
BUT I’M TIRED OF THE HASSLES”

About 5% of all Landlords exit each year

Common Exit Strategies

Most Landlords Would Continue IF 7 TOP “Issues” Could be Eliminated.

Wouldn’t You?

Why Pay the 40% Taxes and Deposit Proceeds in Bank at 1-2%

Why Pay 15% to Re-Invest / No Cash / Lose Total Control (DST)

Equity Sharing Joint Venture

A Different Solution For Landlords

A Joint Venture Mis-Named “Equity Sharing”
(Not A Rental Relationship)

The “Secret Sauce”

“When a Person Invests, Their Mind and Actions Follow”

Equity Sharing works because the Parties are both creators and participants.

Every Agreement is unique to the needs of the Parties.

In addition, Covest Properties provides on-going problem solving and mediation support to the parties for the duration of the Agreement.
Opportunity for Investor to Access Equity – No Bank

AND… multiple exit strategies.

The Seven Top Issues For Landlords

Problem 1 – High Turnover Rates

Covest Solicits Applicants – Continuous
(Families – Former Homeowners – Provide History / Video)
Landlord Introduction (Multiple Choice) – Landlord Chooses
Agreement Between Parties – 5 to 7 Years and Longer
Families Want Stability

Problem 2 – Payment Issues

Automatic Payment Withdrawal by Servicing Entity
Notified if 1 Day Late – Covest Initiates Action
Covestor Makes All Scheduled Payments and Expenses
(Stands Behind Covestor Performance)

Problem 3 – Legal Issues

Agreement Dictates Responsibilities and Rewards
Negotiated – Not Dictated – Covers All
Joint Ventures Not Part of Rental Regulations
Covest Continues as Mediator and Covestor Backer

Problem 4 – Staying Organized

Servicing Entity and Agreement and Covest – Problems Gone

Problem 5 – Frequent Evictions

Families Want Stability
Investment and Agreement Influence Actions
Last Ditch – “Forced Disposition” (cash for keys)
Covest Makes Investor Whole – Keeps Interest or Re-Sells

Problem 6 – Property Management Finances

3rd Party Bonded Entity
All Payments By Covestor (Same Goals)
de facto Property Manager
Agreement Identifies Potential Problems, Issues, and Disposition
Upkeep, Repairs, Emergencies – Covered

Problem 7 Relationships With Family And Heirs

Tenant Issues Gone
Property Management Issues Gone
Horrible Regulations Gone
Structure Permits Cash Generation from Equity No Tax Events
Heirs Hate Being Landlord – Love Effortless Investments

How Does This Work?

New Tenants Agree to PURCHASE % of FUTURE EQUITY – Agrees to Pay ALL Expenses
Landlord Provided Total Explanation and Advantages of Joint Venture – Understands Risks and Impact on Seven “Issues”
Covest Obtains Quality Tenants to Purchase – “Covestors” – Ongoing
(Emphasis on Families and Former Homeowners)
Detailed Agreement Negotiated – Not a Rental Agreement
(Covers Requirements / Benefits / “What If’s”)
No Agreement – No Deal

Summary

Equity Sharing – free-form joint venture in residential real estate.
Used by HUD, churches, cities, parents with children away at college.
Renters / Covestor- participate FUTURE equity – tax benefits -stability
Problems for Landlords and Tenants GONE
Negotiated Agreement with and for the Parties (required),
Covest administers Agreement – stays involved

(442) 385-4160

info@covestproperties.com

Landlords /
Investors

Landlords Have No Friends

The Top 7 Issues

The Landlord's Prayer