Real Estate & Investments

WEALTH BUILDING

Brown Developments has developed partnerships with full-service real estate development firms to help investors maximize their money. 

The partnerships provide Brown Developments’ investors an opportunity to invest and participate in residential real estate housing projects without swinging a hammer or managing day-to-day construction. 

Our developer partners specialize in building residential/single-family construction homes in high-demand markets.

The partnerships offer investors the opportunity to invest and participate in residential real estate housing projects in two ways:

Short Term: Gap Funding

This is a one-time monetary investment, tied to a real estate property that is used for the portion of the construction not covered by the construction loan. To secure the gap funds, the investor becomes the second lien holder on a designated property. The Gap Funds are held in escrow and only used for expenses related to a specific property. When the home is sold and closed, the construction loan is in the first lien position to be paid to transfer title, the investor in the 2nd lien position receives their initial investment and interest prior to the builder receiving their profit. 

  • ROI: 10% – 40% depending on the market
  • Timeframe: 8 – 12 months

Long Term: Traditional Purchase

We only look at areas with stable economies and hot housing markets. These areas typically have 10% or higher appreciation, populations and jobs are growing, municipalities are business-friendly, and there is more demand than supply in the real estate market.

These are exactly the things that rental property investors love to see.