Below is a list of frequtently asked questions. If your question is not answered, please contact us at info@pivotalcompany.com or call us at (408) 867-6918.

 

Are you a traditional real estate broker?
No. We are a real estate investment consulting firm. We do hold a brokers license but our primary product is first and foremost consulting services.

 

Are you a real estate investment club?
No we are not. We are not an education firm and we do not hold regular meetings. We are a real estate investment services and research firm. Our clients do receive a de-facto education as a result of working with us, but we do not have formal structures for education.

 

Are you a real estate fund, or Tenancy In Common (TIC)?
No. We are a real estate investment consulting firm. We assist our clients in creating a real estate investment plan that fits their goals, needs and risk tolerance. Ultimately we help our clients build a diversified real estate investment portfolio controlled solely by them.

 

Where are your typical real estate investments sourced from?
We have teams set up in emerging growth real estate markets across the country.

 

What type of real estate do you work with?
Pivotal works with commercial and residential investment properties. On the residential side, we help you acquire condos, single-family homes, duplexes and fourplexes. All of the properties we present are under market value, have recent appreciation history from 6-15 percent, and have healthy cash flows. On the commercial side, we source all property types, but target low management and maintenance properties. Our commercial target is properties with a cap rate of eight or better and some sort of triple net or modified net lease.

 

How do you think the real estate bubble has affected U.S. real estate investments? Is now a good time to buy?
There is always a hot real estate market somewhere. Most areas of the country that saw huge appreciation over the last few years are now in decline or stagnation.

Yes, it is a great time to buy. There are plenty of areas of the country still experiencing solid appreciation and positive cash flow. Additionally we are near the bottom of a national correction so there are terrific deals to be found. The smart investors are buying up a lot of property right now.

 

I spent a lot of money on real estate investment education and still don’t own any investment property. It’s not as easy as the seminars and books make it seem. How do I know working with Pivotal is going to bring me results?

We believe in educating through diligent action application. As a Pivotal client you will own investment property within 90 days of contracting with us. We hold your hand through the entire process and carry the bulk of the work load for you. If you’re not ready to own investment real estate, we’re the wrong folks for you to be working with.

 

Why should I invest my money into real estate and not stocks or bonds?
Reason 1 – Assurance
First of all we do believe in having a diversified investment portfolio. That being said, in the stock market the company you’re investing in can go out of business and you can loose your entire investment over night. As long as you own real property it will never lose 100 percent of its value. Even if the property were to burn down, you still own the land and insurance would pay to rebuild the structure.

Reason 2 – Leverage
Banks are willing to loan 90 percent or more of an investment property’s purchase price to the buyer. The fact that the bank is paying for the majority of your property purchase makes the potential for your cash-on-cash returns with a real estate investment exponentially higher than those associated with buying stock with pure cash.

Example: $100,000 investment in the stock market will buy you $100,000 worth of stock. $100,000 investment in real estate – where the bank is loaning you 90 percent of the purchase price – will buy you a million dollars worth in real estate. If both investments increased in value by 10 percent annually, the stock investment makes you $10,000 per year, but the real estate investment makes you $100,000 per year. This is a cash-on-cash return of 10 percent from your stock investment and 100 percent from your real estate investment.

Reason 3 – Tax Breaks
Investments in real estate also provide major tax benefit to the investor. Stock market investments do not. Consult your tax professional.

 

How much do I need in order to start investing with Pivotal?
It depends on the type of real estate investment. Usually starting out, you need at least $30,000 of capitol.

 

How do you identify your next up-coming markets?
We have a due-diligence team whose only focus is to scour the country, looking for key economic indicators on the rise such as:
Population Growth
Job Growth
Permitting Trends
Upcoming Infrastructure
Rent Increases
Increase of Occupancy
And much more

 

We then develop relationships with major builders and investment brokers in the area to support us in uncovering deals that can’t be found by the general public.

 

Are there any added benefits to working with Pivotal other than real estate?
Through our experience we’ve developed relationship with outstanding attorneys, tax advisors, estate planning, bankers, property managers, and construction teams. These members become a part of your team once you sign with Pivotal.

 

Who are you typical types of clients?
Our typical client is a successful individual age 30-65 who values family and quality of life. These folks hire us for the time savings, quality and depth of research we provide. The average Pivotal client usually understands the fundamentals of real estate and the value of working with a company who has the network built over the last seven years to leverage the best and most outstanding inventory in the country.

Do you work with IRAs 401K’s and other investment vehicles when investing in real estate for clients? 
Yes we do. We understand the ins and outs, pros and cons of using the different retirement vehicles to invest in real estate. We can help guide you through this process and assist you in your execution.

 

Can you work with 1031 Exchanges?
This term is music to our ears. It means you are considering deferring your tax liability when selling a property. We love working with 1031 Exchanges and would love to help coordinate and execute your exchange. Pivotal has a history working with exchanges from as little as $30,000 to in excess of $1,000,000.

 

We want to answer any of your questions please call us at (408) 867-6918 or send us an email at info@pivotalcompany.com.