f you are doing a 1031 Exchange and looking for replacement property, you have several choices. If you buy another commercial or multi-family property you will face the risk of vacancy and management costs and difficulties. If you buy a Tenancy in Common (TIC) interest in a large property, you face extreme illiquidity and a very cumbersome exit strategy. If you buy single-family houses (SFH’s), you risk vacancy and management difficulties—until now!

Tortoise I, LP is introducing what we believe is the most perfect answer to your 1031 needs: packages of “guaranteed return” SFH’s that eliminate your management costs and vacancy risk, while giving you the flexibility to exit gracefully and even gradually according to your own desired schedule.

Here’s how it works. Our business is building good-quality rental properties (mostly SFH’s) in the Dallas/ Fort Worth metropolitan area—the best area in the country for investing in residential income properties. We acquire parcels of land that will each be developed as a project containing a number of individually-deeded rental properties. The smallest projects may contain seven (7) houses; the largest may contain dozens. All are designed to produce positive cash flow using ordinary financing.

Now, here’s the best part: we will guarantee you a lease at a rent rate that will yield positive cash flow using typical financing for a good-credit investor. You start earning rent immediately. You do not pay management fees. You do not have any down time for vacancies. You do not have to deal with property managers (unless you want to).

We use reliable, licensed property management companies that we have done business with for years to lease and manage the properties—primarily on the Section 8 program. We pay the management fees, leasing costs, etc.

You get a monthly rent check and statement and end-of-year statement and 1099 for your tax preparer!

SCALABILITY

One of the real advantages of this program is the scalability of your investment. You decide how much property you wish to buy based on your 1031 needs, or other criteria, and we put together a package of properties that meets that need.

Financing options can also be used to adjust the amount of leverage (debt) you want to carry. You could potentially buy properties for all cash, 50% debt, or all debt, or anything in between. Standard residential real estate financing is available with fixed-rate terms typically of thirty (30) years and with the option for ten (10) years of interest-only payments. Many other options may also be used in order to tailor the investment to your specific situation.

ELIGIBILITY

Because these properties are unquestionably a “real estate” investment, they are eligible as replacement properties regardless what type of real estate you are selling/have sold in your 1031 Exchange. You do not rely on dubious legal opinions—this really is real estate! While you may use any Qualified Intermediary as your 1031 agent, we recommend Asset Preservation Inc.( www.apiexchange.com ), a firm that specializes in Section 1031 work and has done well over 100,000 exchanges nationwide.

EXIT STRATEGY

Since each SFH is separately deeded, you have tremendous flexibility to convert back to cash all or even a portion of your investment. If you pay all cash or use residential real estate financing, of course, you can easily sell one or several properties on whatever schedule you desire. If you use commercial financing, be sure to discuss the terms for partial releases on the lien with your lender before choosing your loan.

SFH’s can be sold to other investors, or to owner-occupiers, too. That gives you a much larger market for your properties if you decide to sell some or all of them.

OWNERSHIP

You own the properties in your name, or the name of an entity, such as an LLC, that you specify. We are not partners or co-owners with you. You can make decisions as to what you wish to do with a property and do it without asking anyone’s permission or agreement—except, of course, for the ordinary obligations of having a lease in force.

Guaranteed Return

These properties are eligible for the Guaranteed Rent Return program.

FINANCING SOURCES

We have lenders working with us as strategic partners. They are able to provide almost any type of loan and will work with you to select the best options for your circumstances and future plans. We recommend DFW Funding Solutions (ron@thedfwgroup.com), who have established a good working relationship with our bankers and have done an excellent job on many loans for our customers. If you have a different preference as your lender, we will be happy to talk with them to assure that they meet the requirements of our bankers.

PRICING

Unlike with some commercial TIC investments, the prices you pay for properties are never above-market, and are often somewhat below what comparable properties in the area are selling for.

WHAT IS REQUIRED OF YOU?

This program is designed to work well for investors with good credit and sufficient cash to pay at least 20% down on properties. You must be pre-qualified by our lenders, who will issue a “take-out” letter to the banks financing the development and construction. You must pay earnest money of 20% upon signing of contracts (an individual contract for each SFH).

HOW DO YOU START?

Click on the Contact Info. tab to begin a dialogue with one of our representatives or call Curtis Lee at (972) 523-5524.