Key Property Group -- FAQs

FAQs

During our converstaions we receive numerous questions regarding how we can help clients with their particular needs. The information below is designed to help answer some of these questions in advance. Please contact us if there is a topic you'd like to see posted here.

IMPORTANT NOTE: We do NOT offer legal, detailed financing or accounting advice but can refer you to appropriate, and reputable professionals if you are located in North Carolina.

Question
Is the Key Property Group a corporation?

Answer
No. The Key Property Group is an informal coallition of several real estate investment companies having common ownership ties that work side by side to invest in their respective target areas. The companies that form Key Property Group share common goals, operating procedures, guidelines, and a common mission.

Question
Is the Key Property Group a licensed real estate organization?

Answer
No, Key Property Group is not an organization in the legal sense of the word. One of the corporations in the Key Property Group is a commercial brokerage firm licensed as a real estate firm in North Carolina. This firm represents several of the Key Property Group companies in real estate transactions, from time to time and offers free representation to tenants to assist them in purchasing homes from the Key Property Group companies.

Question
How can you help me sell my home?

Answer
First, no member company of the Key Property Group practices brokerage services for hire. Therefore, we do not list homes for sale, nor do we represent sellers in the sale of their property, other than our member companies or third parties with property listing at $1,000,000 or higher.

We do however buy homes if they are attractively priced and the condition of the home can often be less than ideal. We buy homes for resale and for rental purposes. Depending on where you home is located and the layout of your home, we may be able to take over you mortgage or buy your home for cash.

If your property does not meet our criteria, there's a good chance we can refer you to another party that may be interested in acquiring your property.

Question
Do you teach others to invest in real estate?

Answer
No. However, an affiliate company, Key Business Institute, Inc., does offer real estate training seminars from time to time. Click here for more info.

Question
Who manages your property for you?

Answer
Some of the property owned by companies in the Key Property Group are managed by third party property managers. Some are managed to company staff directly. All third party property managers are reputable licensed real estate agencies in the area specializing in property management. The screening process is similar across all companies and even if a third party property manager is used, the Key Property Group company staff consults with the property manager on the approval or denial of any questionable applications.

Question
Where can I get an application to rent a unit?

Answer
Contact us regarding the prospective rental property and we will put you in touch with the respective property manager for that property. The property manager or property management assistant will provide a rental application and will explain the application process.

Question
Are other investor allowed to join your companies?

Answer
In general, no. The companies are privately held and are not seeking other members. However, the companies do use private funds secured by high quality real estate and are always looking for attractive investment capital. If you have funds available to invest we may be interested in providing security for loans used by our companies as investment capital. This is an attractive way for investors to realize good returns on long term assets with security by investing in well managed portfolios of property in attractive areas.

Question
What are the areas in which the Key Property Group companies invest?

Answer
At this time principal investment areas are Raleigh, Rocky Mount, Tarboro, and Pinetops, all located in eastern North Carolina. We are actively seeking attractive investment opportunities in the greater Raleigh area, western Rocky Mount, and Tarboro.

Question
Have your companies been hit by the economic market challenges?

Answer
Yes, like any investment company our companies have been affected by the economic challenges. Fortunately, over 90% of our inventory is located in areas that did not experience housing value decreases due to the market challenges. However, we have experienced a much higher than usual tenant turnover which has substantially increased maintenance and vacancy costs. Additionally, access to traditional capital has been tightened which has slowed our growth. Finally, the resale of property to replenish capital reserves has been greatly hampered which in turn has slowed growth and placed more pressure on our available capital supply. We are beginning to see an improvement in the housing market, which is allowing us to once again enter into housing contracts for the sale of property, and as result we are once again shifting from an inventory maintenance strategy to one of evaluating new investment opportunities.

Question
Do you pay "bird dog" fees to people bringing investment opportunities to your attention?

Answer
Absolutely. However, we insist that the transaction be conducted 100% in compliance with NC Real Estate Laws. If you obtain a contract on a parcel of property that is attractive and if the contract meets our guidelines, we may buy the contract rights from you if you are not a licensed agent. if you are not a licensed agent you may in no way negotiate the purchase with a seller on our behalf, nor may you be paid a commission for such negotiation. If you are a licensed agent, we will be happy to pay a reasonable real estate commission for the referral of any property that we are not already pursuing directly or through another agent. We have found that rewarding people for bringing "deals" to our attention is a great way for us to find attractive real estate investment opportunities. If you know of a property that may make a great investment and are not in a position to take advantage of it, please contact us today. We buy every thing from mobile home parks and single family homes to vacant land in strategic areas and a variety of commercial property types. The minimum investment value we typically pursue is $10,000 and the max is typically around $2,000,000. We do not hire "bird dogs" on a fee basis to look for property on our behalf.

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