JAC Commercial, LLC

FAQ’s

Though we are based in San Diego, Calif., our main focus is investing in Illinois, Arizona and Nevada. That’s where we have a core team of professionals (property managers, attorneys, construction crews, Title and Insurance companies) on whom we rely. Our relationships with these partners are proven. We trust their skills and experience. Working together to serve our collective goals and those of our investors as well.

  1. Why invest out of state?
  2.  We focus on states that offer landlord-friendly laws.

     

  3. What type of Financial Reports do you provide?
  4. Full transparency- profit and loss report, bank account for each property, monthly summary of changes for quick review, all monthly (ex: water bill spike). The monthly review is key for investors that don’t want to spend a lot of time balancing accounts themselves. Recently, through a monthly summary we were able to identify for our investor a water leak from a sudden increase in the water review.

     

  5. What is the single most important aspect to real estate investing after the purchase is made?
  6. The “management” of your investment is the most important aspect. JAC Property Management provides the four major components:

    1. A team of professionals you can trust.
    2. Consistent maintenance of the property.
    3. Complete Transparency of financial reporting and property status.
    4. Strategic planning for continued profitability in your investment.

     

  7. What is a Performing Asset?
  8. A performing asset is an asset that provides a dependable annual financial return.At JAC a performing asset is an asset that has been remodeled, insurable, tenanted, property management in place and already producing a predictable stream of cash flow. Because JAC provides performing assets there are several loan payoff scenarios: If the investor uses all net cash flow received from rents to pay off the mortgage then the investment can be paid off in five years. OR, the accumulated net cash flow collected through rents when paying cash would in effect pay back the initial investment in 5 years.


     

  9. What is a SELF-DIRECTED IRA?
  10. A Self-Directed IRA is the term used for individual retirement accounts that give investors the ability to direct their retirement savings into anything allowable by law. Any IRA can legally hold real estate, promissory notes, private company stock and a virtually unlimited array of other alternative assets. In other words, you no longer have to put your money in the hands of a broker who will limit you to only limited to a narrow choice of stocks, bonds, and mutual funds that may or may not provide you with a monthly cash flow. Imagine, positive cash flow going into your account every month, regardless of what the stock market is doing. No more riding the wave of a volatile market. Invest with confidence, knowing that a performing asset secures your investment!


     

  11. What is Section 8?
  12. “Section 8” is a common name for the Housing Choice Voucher Program, funded by the U.S. Department of Housing and Urban Development. Low-income residents apply through Home Forward to qualify for a rent assistance voucher. Landlords are guaranteed paid rent by the government program. JAC is 1 of 2 companies that accepts section 8 vouchers in Vermillion County.  When JAC is placing a tenant using section 8 vouchers all rents are automatically paid by the government and regular inspections are completed by the housing authority on the government.

     

  13. What is CCR? 
  14. CCR is Cash on Cash Return.There are different ways to measure your CCR.  It is most commonly calculated by using the ratio of annual before tax cash flow divided by the total amount of cash invested and expressed as a percentage (%).

     

  15. Scenarios
  16. We use a different formula. We use the net amount, based on previous investment properties. Our nets include taxes, insurance, and property management fees deducted from the gross rent collected. Actual “net cash flow”. We then use the net divided by the investment amount (purchase price) for an average range of return (17-19%).

     

    3 Tier:
    25,000-27,000 typical 2 bedroom
    27,500-29,000 typical 3 bedroom
    30,000-35,000 typical 4 bedroom