Frequently Asked Questions
How long have you been operating ROI Strategies, LLC?
ROI Strategies, LLC began operations in 2009. We initially started ROI Strategies to flip homes and remained successful for about 2 ½ years. After that time, the risks were too great for the shrinking margins and inventory we faced. By then, we had a year into practicing and fine-tuning our proprietary Rent to Own strategy. Because flipping homes became too risky, we refocused the fund onto our new Rent to Own strategy. That officially took place in April 2012.
Can I use my IRA, Roth IRA, SEP IRA, Defined Benefit, 401(k), and/or 403(b) Plans to invest?
Yes, it’s actually really easy! You do it by opening a Self-Directed IRA. Click here for a downloadable PDF that will explain how to open one.
What is an Accredited Investor?
Investors must be accredited to join our company, ROI Strategies, LLC. For most investors, this usually falls into two categories or both:
- A natural person whose individual “net worth,” or joint net worth with Client’s spouse, exceeds $1,000,000 excluding the value of the primary residence; and/or
- A natural person who had an individual income in excess of $200,000 in each of the two most-recent years or joint income with Client’s spouse in excess of $300,000 in each of those years.
There are other parts of the accredited definition but those mainly pertain to institutions, pensions, etc.
How do you make your money to manage the company?
Hughes Private Capital, LLC is the managing member of ROI Strategies, LLC. The fees charged to ROI Strategies are outlined in detail in our Offering Memorandum. Hughes Private Capital can receive payment for its management services in one of 3 ways: a transaction fee, a performance fee based on net profits, and a profit split for properties that are not Rent to Owns (flips).
Do you still flip homes?
Occasionally, but we don’t focus on it. If we find the right deal and it is almost a sure bet, then we will do the flip. Because of our successful history and experience, other people invest their time finding the flips, then bring them to us.
How do people find you that want to do a Rent to Own?
Rent to Own homeowners find us through our sister company, Home Today. Candidates usually learn about us through their realtor, other Rent to Own homeowners, referrals, and various marketing channels.
Where do you currently own property?
Currently, we operate in Reno, Las Vegas, Phoenix, and in the heart of the Bakken in North Dakota. We continuously search and test other areas within the U.S. to help diversify our portfolio.
How do you qualify the Rent to Own Homeowners?
First, we send them to a trusted and detailed mortgage broker who then pulls their tri-merge credit report and reports back to us with our Credit Review Score. This tells us three important facts:
- When they can get their financing
- For how much
- Their credit challenges
We adhere to one simple rule: the candidate must be financially strong enough to secure their financing within our 4-year Rent to Own term. If they can’t, or they have an unstable financial history – they don’t qualify. Part of our success lies in our stringent requirements for homeowner candidates.
What happens if a Rent to Own Homeowner walks away?
Your investment remains protected because we follow three simple rules when purchasing a home:
- Purchase in highly desirable neighborhoods
- Stay within the core rental market of $250,000 or below
- Only purchase single family residences
These purposeful requirements protect us if a homeowner walks away. Because it leaves us with 3 choices: find another Rent to Own homeowner, sell the property, or revert it back into a regular rental. All three options continue producing revenue for the fund.
Do the Rent to Own Homeowners have to put anything down?
Yes, homeowners put 3% down. This is credited toward their purchase, plus rent and security deposit. Usually this equates to an $8,000 to $15,000 investment for the homeowner. With such a sizeable deposit, homeowners are dedicated to purchasing their home anytime after 12 months within 4 years. This greatly reduces the risk of homeowners leaving the program prematurely.
Do you buy the homes first and then find the Rent to Own Homeowner?
No. We don’t like to speculate with our investors’ money. Once qualified, the Rent to Own Homeowner is allowed to go out on the open market and find the home they want. If the home meets our approved criteria, we purchase the home and they begin paying their monthly rent. This assures us cash flow from day one.
How can I find out more?
This website only provides a cursory overview of ROI Strategies. For complete investment details, please call (775) 297-4970. There’s absolutely no obligation. Just knowledge.