CLEVELAND REAL ESTATE INVESTMENT

Investing in American Cities

• One situation is where the client utilizes our advisory and acquisition services to locate and secure an investment property.  

• Another type of opportunity is one where we locate and secure an investment property to renovate and rent for cash flow, or renovate and sell for capital gains (we call these opportunities, IPOs).  As these IPOs become available, we make them available to our investors.

• The third type of opportunity we provide are rental properties (typically single family homes) that are offered as passive investments to investors looking to participate in the real estate market without any of the active involvement (or headaches) associated with rental real estate.  These investments are totally renovated properties with tenants and property management in place.  These opportunities are ideal for holding within retirement accounts or for non-local owners looking for cash flow.

3. Where does your opportunity exist?
We invest as values are poised for a rebound.  We are value investors... rather than chasing markets that have already appreciated, we look for areas that have had a slump but are fundamentally good and are on the brink of resurgence.  We use a combination of our own experience and judgment, as well as proprietary software, and analysis of economic, demographic, and other data to determine where and when the opportunity exists.. 

4. How long have you been offering this real estate land investment opportunity?
Our management-level professionals have between 8 and 31 years of experience in the real estate field.  With this strong background, in 2007, a team was assembled and CRG was founded.  Since then, we have worked with several hundred investors.  During this time, we have also acquired properties for the CRG portfolio, which currently numbers over 70 properties.  Because of the strong cash flows and excellent capital gains, we currently have no debt outstanding. 

5. Does your opportunity help investors build long term wealth, immediate cash flow or both?
The bulk of our investments are made for immediate positive cash flow with the purpose of reinvesting and building long term wealth.  

6. Is financing available for your investment?
We currently don't finance investments.  Most of our clients invest with cash or invest with assets within their retirement accounts.  However, some clients find conventional or other sources of financing in order to leverage their investments.

7. Are there any special tax advantages?
There are numerous tax advantages of owning real estate both within and outside of an IRA.  We can direct you to accounting professionals that can discuss the specifics for your situation.

8. Why is your opportunity ideal for self-directed IRA investing?
One can have almost any investment within an IRA ... but it must be passive.  For example, one cannot have active involvement in the real estate owned by the IRA.  This is precisely why the CRG opportunity is ideal for self-directed IRAs.  We offer passive investments that meet the IRS requirements for owning real estate within an IRA.

9. How does your company make money?
CRG makes money on the spread between the total acquisition plus renovation expenses and the offering price to the investor. CRG buys properties only if they can be acquired at a price which, when renovation costs are included, can be rented to yield 11 to 15% returns to investors, including expenses such as property management.   On the renovation and sale strategy (IPOs),  properties are acquired if they can be sold within 6 months returning a minimum of 20% (40% annualized) to the client. 

10. What type of results can investors expect with your investment?
The same algorithms we use to build CRG's real estate portfolio is used to build our clients' portfolios.  Hence, we would expect similar results:  11% to 15% per year on rental real estate cash flows; 40 - 50% annualized, on properties (IPOs) renovated for capital gains (however, because our strategy is to invest for short-term capital gains only if the return is substantial, these opportunities are not always available and clients generally wait for several IPOs before they can participate.)

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