Why choose our US real estate solution rather than another one?
You are member and interest holder, which means that you vote on everything important (entry fee, exit fee, management fee…) and that the majority prevails. Since it’s your money and the money of your fellow investors, these expenses are obviously minimized as much as possible in order to maximize the return. If you were investing in a bank, you would get a 6% return (the bank must make 20% before taxes in order to pay its managers and distributors and to sustain its rate of expenditures. These don’t exist at H&SI).
This one is easy: if you buy a house and manage its rental alone, you face considerable risks: if you have even a single change of tenant in 3 years, you will suffer a 30% drop in profitability. At the beginning of the first year of investment, you have to sign the purchase agreement, carry out repairs for 2 months and spend 1 month ½ to find a tenant, and you’ve already lost half of the year by then. If the tenant doesn’t pay the rent, the process is quite fast since it lasts only 6 weeks, but add to it the time it will take you to initiate the process, to evict the tenant and to find a new one…
This is one of the core benefits of investing at H&SI: our purchasing method is the same as the one used by the US housing professionals that you will commission to find a house if you want to buy on your own, except these professionals collect their share of the transaction and you end up with a 20% to 25% increase compared to a direct purchase from the bank or the Court. Even though HSI is run by French people, it possesses all the means to operate directly in the US market.
4. Sourcing, administration and rental management fees, and taxes are handled on your behalf: You have nothing to do.
As we already saw, it is practically impossible for an individual to find a low-priced house. In 80% of the cases, you will also need to carry out some repairs before the house is ready to be rented. Then, you have to rent it out, to control the agency and to handle your company’s accounting if you invested through a company. You must also file your tax returns in the US and in France. These are all tedious tasks that H&SI, your manager and special secretary, handles.
This is a basic real estate principle: we collect the rents and they are paid quarterly. That allows you to repay a loan if you took advantage of a leveraged loan.
Please check also our pages on taxation. We pay the US taxes, which are deducted at source, and will provide you with a pro forma to help you file your tax return in France very easily.
It’s in the operating agreement, and there is complete unanimity on this subject, as that’s what all the members want.
Tangible: this is real estate, the houses are real. Liquid because it’s easy to get back: we just sell the house.
When you become member, you’ll see how much money Franck and Jean-François have invested in the company. You will then understand how motivated they are to ensure that the company is managed as best as possible, by minimizing expenses and maximizing returns thanks to optimal purchases and high rents.
Note from JF Chauffeté : these are the points that convinced me into investing in HSI. As member and interest holder, we are all involved in the company’s strategic decisions and we are free to dispose of the shares whenever we wish. These are valuable characteristics as we keep the control of our money while investing on a high yield product, something that can never happen in a bank or a financial institution.