Residential Real Estate Investors

The process is streamlined and with reduced or no contingencies, many parties that would be involved in a conventional deal are not or not so involved in a deal on terms. In many cases we even shared the same thrid party professional, i.e. a real estate attorney, but that should only be done if there’s a sufficient level of comfort and trust, assuming it’s legal in the state of the deal first of all. In any case, we are often not represented by brokers, if we are, we often pay the broker’s fee in full or in part, and we often don’t require a listing agent. These deals are also easier to set up and finalize, saving time and effort for third parties as well, but only if the parties have specific experience. If they don’t, the lack of familiarity can easily derail any deal, as the level of comfort may lack with that of knowledge, it could cause an erroneous assessment of risk and reward and a generally inaccurate perception of the transaction. Whether it’sa lawyer or a broker, an inspector or an appraiser, a CPA or a mortgage broker, always make sure you put the effort in finding a professional who is familiar with deals on terms because it’s an effort that will pay off. If you fall short and resort to someone without specific competence, the deal will likely fall through, as decades of experience confirm, you will likely miss out on the deal.  

7) Also called Letter of Interest, it’s just a plan with a self-explanatory description, that explains the basic understanding of the actual agreement that requires signatures to be enforceable. The agreement always follows the LOI and details its basic terms. The NON-binding nature of an LOI makes it unnecessary to sign because it can’t be enforced. It just prepares for the main agreement that, instead, needs to be signed and therefore is enforceable. An LOI is NOT A CONTRACT; that will follow if the terms laid out by the LOI are agreed upon. The contract will make sure that all terms are understood and agreed upon in writing and, therefore, will create the deal. We like using LOIs because they cover what was already discussed, usually in person, over the phone, email, or text, and show them clearly in writing, so they are easier to go over again before the lengthy work of drafting a tailored contract that would have to cover all the smaller details for a smooth transaction. 

1) It’s a Lease-Option Agreement between the Seller and Proxima Investors, who turn around and simultaneously mirror the deal with a third-party buyer. Proxima Investors’ buyer takes possession, but Proxima Investors is responsible towards the Seller until the end of the contract. The contract ends when the formal Purchase & Sales transaction by the 3rd party within and according to the agreed terms. 

2) It’s a Purchase & Sales where the transaction is partially in cash and the rest is financed by the Seller who receives regular monthly payments on top of the initial downpayment. The loan is similar to a regular bank mortgage loan, and it’s equally secured by the property that acts as collateral. The Seller is the bank in this case. 

3) It's a double agreement that includes a rental agreement that runs concurrently to an option to purchase the same property that is rented, for the same period of time and at agreed-upon terms and conditions. The concurrence determines a type of transaction that is not just the sum of a straight rental and an option; it's a very different type of deal with its specific nuances and implications that can be described as a transaction that is between a conventional purchase and a straight rental, without being either one. From a Buyer point of view, the renter is not a renter, as they are just waiting for the time to formally purchase the property; they are have a plan and schedule to achieve ownership, by closing within the agreed-upon timeframe, cashing out the Seller. That makes them Buyers more than Renters, with the mindset of someone who is going to be the owner of a forever home, not of someone who is going to move out sooner or later. From the Seller's perspective, the Seller has not sold yet, but retains the control and security of formal ownership of the property, until paid in full. Only then the Seller, now satisfied, will convey Title. 

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4) A Lease-Purchase is an agreement in which a party rents a property from another with a commitment to Purchase at a later date and having satisfied the terms and conditions that were agreed with the Seller. There are different types of commitment, the most important are legal, where a renter must purchase or face legal consequences such as remedies and penalties, financial, such as forfeiture of sums of money or rights, monetary penalties, and so on. 

5) It's a regular Purchase & Sales transaction where the buyer takes over the debt and the payments on the underlying mortgage loan, which stays in place according to the agreed terms. It can go full-term, or there can be an obligation to pay it off within an agreed timeframe. It's mentioned as an option in the HUD-1 form (Settlement Statement) on line 203 & 503.

55) What is an Assigned Lease-Option? It’s a contract in which we agree to rent a property for a period of time and simultaneously agree on an option to purchase the same property within the term of the lease at preagreed terms and conditions. In turn we contract with a third party who will use and occupy the property within the terms we agreed in the other deal. At the time of both contracts going into effect, we step out of the deal with our tenant/buyer replacing us in the relatinship with the seller.  

Proxima Investors as such, started in 2017. However, the main partners of Proxima Investors, Denise & Marco, started this type of transactions together, privately in 2015. Before 2015, Denise and MArco have two very different backgrounds and experiences. It may also be worth mentioning that Proxima Investors started the journey for accreditation at the Better Business Bureau in 2017, but completed the process only after a lengthy and thorough investigation as it seemed, only in 2018. In conclusion, Proxima Investors is a project that sees Denise & Marco combine backgrounds, experiences and skills with a focus on deals on terms in residential real estate, in 2015, but picks the name, the brand and formalizes as Proxima Investors in 2017.