About InvestAmarillo
We research, buy and renovate residential properties consisting of 1-4 units. After leasing them to suitable tenants, we offer the properties for sale to investors. Each property is 100% owned by the investor who purchases it. Our optional turnkey property management allows the investor the benefits of passive income while maintaining the benefits of outright property ownership. We are not a REIT, investment pool or fund. See Our Team.
Our properties provide strong, consistent returns at relatively low levels of risk. Investors frustrated with low yielding bank accounts and bonds will find them to be an outstanding alterative that remains conservative but offers substantially higher yields. Our properties provide steady, inflation-protected cash flow that is not correlated to the performance of stocks or bonds and so therefore provide valuable portfolio diversification. InvestAmarillo allows for achieving the benefits of owning real property without the time, responsibilities and many of the risks of purchasing and renting on your own. Our single-family homes and duplexes are especially well suited to building predictable, long-term retirement income inside an IRA.
Amarillo’s residential properties offer exceptional cash flow and high investor returns. Equally important, it is one of the most consistent residential real estate markets in the United States. It has a robust, diversified economy and low unemployment. Learn more about The Amarillo Market.
Investing in Our Properties
You may contact us at any time to ask questions or to follow up on a specific property you see listed on our website. Our experienced asset managers can help match you with a property that best fits your objectives, including whether you are better suited to an all cash or a financed acquisition. Once you decide to do so, we will guide you through the entire purchase process. If you decide to have us manage your property, we will introduce you to your dedicated Owner Liaison (OL), who will explain our property management and reporting system. Your OL will be your point person for questions and issues going forward.
We show estimates of a property’s total return, but without adding in property appreciation. This provides a much more conservative estimate than that used by the majority of real estate investing companies, and this conservative approach is part of what sets us apart. A property’s total return has two components: the return on the cash portion of your investment, plus—given that you have financed your property—the equity added as the principal balance on your loan is paid down each month.
This primarily depends on two factors, the specific property you buy and whether you choose to pay cash or leverage your return through financing. For example, a duplex in a given neighborhood might exhibit stronger current returns but be expected to show less property appreciation over time than a single-family home in a more upscale neighborhood. Generally speaking, you can expect high single digit returns for properties purchased with cash and double digit returns for leveraged properties.
There is no fee to register to use our site, search our available properties or speak with one of our advisors, who can explain our fee structure.
Absolutely! (We get this question a lot.) This is a completely “above board” use of IRA funds. The regulations regarding how this must be handled are specific, however. We can refer you to specialists in this area who can explain the process for doing so, as well as discuss whether it makes more sense for you to pay cash or finance your purchase. And yes, you can finance an IRA purchase with non-IRA funds. It requires special handling, both in terms of setting it up properly and in terms of how it is handled on your income taxes.
We make some profit on the difference in our asset’s selling price versus the total we have spent to acquire, renovate and stabilize it with renters. The remainder of our income comes from our property management services, where we utilize economies of scale while still passing savings on to our clients.
Real Estate Investing
The answer to this question could fill a whole series of books, but the quick answer is diversification, leverage and depreciation. Cash, stocks, bonds, gold and real estate, for example, belong to separate asset classes. While many people own at least some stocks, bonds or CDs, relatively few own investment real estate. (Your home may seem like an investment, but technically it is not.) By putting money in real estate you own outright, you diversify away from the ups and downs of the stock market, the interest rate risk of bonds and to a large extent the inflationary risk of
holding cash.
Leverage gives the real estate investor the ability to put less than 100% of the purchase price down and finance the balance. Assuming the investment’s net operating income is greater than the expense to service the loan, you earn a higher return than that which you would have had you paid all cash.
Depreciation is a tax benefit. It allows you to legally deduct a non-cash expense on your taxes for each property you own so that you pay income tax on only a portion of your cash income.
We offer complete ownership of real property (real estate) for investors. We provide flexibility, consistency and 100% ownership. Our target market (Amarillo, TX) offers exceptional rental rate and occupancy stability, hence consistent returns.
We are not a REIT (real estate investment fund) in which you purchase into a pool with an undivided interest in properties over which you have absolutely no control. We are not a TIC (tenant in common) group with set rules on when you can and cannot sell your interest. We do not flip properties or buy into whatever market around the country is “hot.” We are not land speculators. While these investment types and products can all produce excellent financial returns, they have considerably higher risk than do our properties.
We target investors who would rather earn a consistent 15% a year than speculate and possibly lose some or all of their principal investment.
Property Management
We provide turnkey property management with exceptional customer service, both to our rental customers and our investor clients. Happy renters keep top line rents steady, and maintenance and vacancy costs stay low. This translates to satisfied investors. On the investor side, we provide ongoing support throughout your ownership. We can answer questions about rental rates or maintenance items, provide recommendations on property upgrades or even recommend when it is advisable to protest a property tax increase.
Consistent with industry standard, property management fees fall into two categories. The first is a monthly property management fee based on a percentage of gross rent. The second is a tenant lease up fee, which is a percentage of the first month’s rent of a one-year lease. Of course, no one likes to pay service fees, but the good news is that these fees are offset by the gains we create on your behalf. These include low renter turnover, accurately gauging the best rental rates current in the market, and saving money on maintenance by catching minor problems before they become major ones, or simply not paying too much for minor repairs through our network of reasonably priced, quality service personnel.
Certainly, since you own your property outright. We don’t recommend it, though, unless you have prior property management experience, live near the property, have a network of good plumbers, handymen, electricians and other vendors and have ample free time. Providing good, consistent property management services is challenging.