Zero Debt Investments

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Hi everyone, my name is Claudio Fahmy, I am the owner and founder of Zero Debt Investments.:

Hi everyone, my name is Claudio Fahmy, I am the owner and founder of Zero Debt Investments.

Today I want to explain how our partnerships work and why we like to form partnerships. So, why do we form partnerships?:

Today I want to explain how our partnerships work and why we like to form partnerships. So, why do we form partnerships?

We like to form partnerships because we want to help regular people that don't have investment experience achieve great investment results.:

We like to form partnerships because we want to help regular people that don't have investment experience achieve great investment results.

We search all day for the best properties that give the highest return on investment (ROI):

We search all day for the best properties that give the highest return on investment (ROI)

We buy houses with partners that live in areas where real estate is very expensive like New York, California, Florida and Europe.:

We buy houses with partners that live in areas where real estate is very expensive like New York, California, Florida and Europe.

In those areas returns on investment are very low because rents are low compared to the cost of buying properties, and investors there are often forced to get large mortgages.:

In those areas returns on investment are very low because rents are low compared to the cost of buying properties, and investors there are often forced to get large mortgages.

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For instance in Europe a property that costs $150,000 can only generate a rent of $1,000 a month. This is the opposite here in Michigan where rents are very high compared to the cost of buying properties. For instance in Michigan a property that costs $30,000 can generate a rent of $1,000 a month.

Properties in Michigan are very inexpensive because of the housing bubble that happened in 2007-2008 where prices decreased more than 80 percent in some cases.:

Properties in Michigan are very inexpensive because of the housing bubble that happened in 2007-2008 where prices decreased more than 80 percent in some cases.

We are looking for honest partners that understand the investment, and are willing to hold on to the investment for at least 5 years.:

We are looking for honest partners that understand the investment, and are willing to hold on to the investment for at least 5 years.

We don't use debt for investment purposes, which means no mortgages. That makes the partnership very stable and simple so that anyone involved can understand it.:

We don't use debt for investment purposes, which means no mortgages. That makes the partnership very stable and simple so that anyone involved can understand it.

How are our partnerships structured? This is a common question that I get from many people.:

How are our partnerships structured? This is a common question that I get from many people.

Our partnerships are structured in a way where we have a 5% ownership in the company while the partner has a 95% ownership. That means that the partner has total control of the investment, while we simply work for the partner.:

Our partnerships are structured in a way where we have a 5% ownership in the company while the partner has a 95% ownership. That means that the partner has total control of the investment, while we simply work for the partner.

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For instance if we decide to form a partnership to buy a house that costs $40k after renovations and closing costs, we contribute $2,000 (which is 5%) to the partnership, while the partner contributes $38,000 (which is 95%) to the partnership.

All documents are written by a lawyer and signed by both partners.:

All documents are written by a lawyer and signed by both partners.

A business bank account for the partnership is opened and it's used by the property management company to collect rents, and to pay for expenses and taxes.:

A business bank account for the partnership is opened and it's used by the property management company to collect rents, and to pay for expenses and taxes.

We find the properties in the best areas, we fix them up, we rent them out, we pay all the expenses and taxes, and at the end of the year, we give 95% of the profit to the partner.:

We find the properties in the best areas, we fix them up, we rent them out, we pay all the expenses and taxes, and at the end of the year, we give 95% of the profit to the partner.

Every month we send an income statement to the partner showing the revenues, the expenses and the profit derived from the rent.:

Every month we send an income statement to the partner showing the revenues, the expenses and the profit derived from the rent.

The return on investment is at least 10-15% right now, but it can be much higher if the properties increase in value in the next few years.:

The return on investment is at least 10-15% right now, but it can be much higher if the properties increase in value in the next few years.

10-15% is a very high return on investment that allows you to double your money in less than 7 years.:

10-15% is a very high return on investment that allows you to double your money in less than 7 years.

Typical expenses that we face when managing properties are repairs, taxes, property insurance, accounting fees and a $50 a month property management fee. :

Typical expenses that we face when managing properties are repairs, taxes, property insurance, accounting fees and a $50 a month property management fee.

We believe that this is the right time to invest in Michigan real estate because opportunities are abundant but it won't last forever.:

We believe that this is the right time to invest in Michigan real estate because opportunities are abundant but it won't last forever.

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You can call us anytime at (989) 392 5314 Thank you very much for watching

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