Tools & Investment» Quick Reference
Case Studies
Planned Income Program
Edward S., a retired school teacher from the San Francisco Bay area, was on a fixed income from his retirement plan and found that it was not keeping up with the rate of inflation. With the recommendation of his financial advisor, Edward identified Heaven Investment’s Planned Income Program as a great way to supplement his income and create positive cash flow.
Utilizing $200,000 of capital, Edward signed up for the Planned Income Program. He received a Deed of Trust, securing his capital and a Promissory Note defining the terms of his investment. He chose the monthly interest payment plan at a 12.50% APR and receives a check from Heaven Investments for $2,083.33 each month. Last year Edward grossed over $25,000 from his real estate purchase through Heaven Investments.
Signature Equity
Robert M. is a real estate professional who had $75,000 available to purchase investment property. Our acquisitions team identified an ideal property for Robert to move his capital from our Planned Income Program into our Signature Equity program.
The property was a single family residence on the market for $300,000. Using $30,000 of Robert’s initial capital and a 90% LTV mortgage in his name, the property was secured for redevelopment. The remaining $45,000 of Robert’s available funds was used in the redevelopment stage of the project, giving him a total invested interest of $354,000.
Robert was paid 12.00% APR on the total value of his real estate investment and Heaven Investments sent him a check each month for $3,450. Robert made the monthly mortgage payments of $1,800 to the lender and kept the remaining $1,650 as his net monthly profit. The project took 9 months to complete, netting Robert $14,850 or approximately 28.95% APR on his original capital investment!
Tenants In Common
Larry C. recently utilized the IRS 1031 Exchange program to sell a property he had out of state that was not generating adequate cash flow. Working with Heaven Investments, Larry purchased two units in Heaven Investment’s Alder Heights, a 1031 Exchange compliant Tenant in Common (TIC) for $300,000. The property had a 10% APR master lease payment in place to the TIC, providing Larry with $3,000 positive monthly cash flow. The project also has an 8% APR option payment due to the TIC at the end of the development. When the development and TIC are complete (approximately two years), Larry’s initial capital purchase will net him approximately $108,000 in total gross revenue.
