Nevada Real Estate Developer Offers Affordable Ownership Model for Retirees

SPARKS, NV / ACCESSWIRE / May 15, 2021 / The developer and CEO of Newmark Investment, Inc. in Nevada, Darren K. Proulx, offers retirees a project that controls their financial future as they enter the senior phase.

By the time baby boomers reach retirement age, many share a common goal of leading a comfortable life while stretching their dollars and using their incomes wisely to ensure they don’t outlive their savings.

One way retirees can achieve this financial goal is to sell their existing home for access to built-up equity, and then downsize it into a home that doesn’t overwhelm the owner with maintenance or expense.

Once the retiree has decided to sell their current home, their attention will turn to a replacement home. Most people buy houses in the traditional Fee Simple ownership model. Fee Simple means you own the house and the land below. With this traditional model of simple ownership of fees, your purchase price is most influenced by the value of the land under the house.

But what if you don’t have to own the land to enjoy it? What if there was an option to use the land, control the land, and enjoy the land without having to put all of your retirement assets into one direct purchase? Many retirees ask themselves: why should I invest my retirement savings in something (land) that I can easily pay for when I use it?

Real estate developer, mortgage lender, and founder of Newmark Investment, Inc., Darren K. Proulx (pronounced Prue), has used a new model of home ownership on his residential project outside of the booming Las Vegas, Nevada market. With this new ownership model, you can pay a much lower purchase price for the home because you are renting the land under your home rather than buying it outright.

This model is not new to other parts of the real estate industry; it has been used in commercial real estate for many years. Many companies want to focus on their particular business model and not invest capital in the land under their store, business, building or restaurant.

The story goes on

If you’re a retiree, this new ownership model has money in your pocket that you can use for other expenses like vacations, health and wellness, debt payments, or a rainy day fund.

Proulx’s development model sells the customer a new house with a land lease on the underlying land. This “land lease” structure minimizes upfront costs for the customer, as the price of the land is only paid when the retiree uses it (monthly). The homeowner is also protected by the 99 year lease term, with future payment increases tied to the COLA (Cost of Living Allowance) social security.

Proulx’s ownership model has proven incredibly popular with many retirees.

In one example, a buyer at Proulx’s development recently sold their existing home for $ 350,000. They bought a new home on lease for only $ 150,000 – a fraction of the average home price in Las Vegas. That buyer is now paying $ 350 a month for the lease, which leaves them with $ 200,000 in their retirement savings. Proulx’s model has allowed this particular home buyer to save a larger chunk of their nest egg for retirement and stay in control rather than tying up their money in a stagnating asset.

What are the benefits for Proulx and other developers using this model? Under the land lease model, developers sell their homes at near cost and without the normal profit margins.

The tax benefits for the developer of taking his profits with him in the form of a lease that is paid over time, rather than upfront when the house closes the escrow account, are attractive and income is preserved over the life of the lease.

For example, suppose the developer costs $ 150,000 to build and develop a home and he sells the home for $ 200,000. The profit of $ 50,000 is taxed immediately. If the property developer sells the home at cost ($ 150,000) and takes the profit over time in the form of a land lease, the $ 350 per month will only be taxed when the income is received. As long as the developer takes a long-term perspective, the profits from this leasing model far outweigh the upfront profit taking on the escrow, while also providing a great option for the retired homeowner.

Darren K. Proulx has chosen to use this home ownership model in its development in southern Nevada, and other projects in other parts of Nevada are in the pipeline. Proulx has been a real estate agent and general contractor for almost 30 years. These years of experience in this industry have helped him identify new opportunities in the market and develop solutions for customers and investors.

Darren K. Proulx is President of Newmark Investment, a Reno, Nevada-based company specializing in real estate syndication and investment opportunities. Proulx can be reached at [email protected]

Company name: Newmark Investment and Loan, Inc.
Contact person: Darren K. Proulx
Address: 501 Pyramid Way, Sparks, Nevada 89431
Telephone number: 775-358-4428
Website link: https://newmarkinvestment.com/contact/

SOURCE: Newmark Investment and Loan, Inc.

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