Phillip Carter of Texas Cash Cow Investments is scaling foreclosure investing in a way that most people only dream of. He’s providing a turn-key investment model to foreign investors with estimates of 20% cash returns on most investments.
Texas Cash Cow Investments buys foreclosure in bulk from banks, REO’s, and rehabs them and packages them with property management. Foreign investors who hold currencies that have appreciated against the dollar are flocking to such investments. Not only do they get cash flow from rental income and the prospect of long term price appreciation, holding dollar denominated assets also promises them compelling foreign exchange returns. The price appreciation factor of the profit equation is at least 5 years off, but for those with longer term investing horizons, turn-key real estate investments like this are a no brainer.
The business model is clearly a winner for Carter as well. He certainly has an interesting approach with transferring the risk and ownership of the underlying asset off to investors while retaining a portion of the rent premium with his bundled property management service. Check out his site at the link in the first paragraph for more ideas on how his business model is structured.