> So all that’s required of me is my credit, and a 5% - 10% downpayment, right?
> What kind of supporting documents are required?
> What are my costs?
> What’s the catch? Is there a long-term obligation?
> So I can cash out at any time, or take it over if I want?
> What about insurance?
> So why do you need me?
> How soon can I get into a house and make money?
> How many houses can I do? How much can I make?
> Are these new homes, or rehabs? Where are they?
> Are these "Section 8" houses?
> So are these inner-city slums or projects? Are these like "slumlord" properties?
> But can't you make more on bigger, more expensive houses?
> How risky is this?
> How does the 12-Month Limited Mortgage Payment Guarantee Work?
> Will this affect my credit?
> What if I want to invest cash, or rollover my IRA or 401K for tax-deferred investment?
> What are my next steps?



Q: So all that’s required of me is my credit, and a 5% - 10% downpayment, right?
A: That’s it. All you need to participate is a credit score (FICO Score) of at least 680 or higher, $60,000 or more combined household income with supporting documents, and you can participate with as little as 5% - 10% down.
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Q: What kind of supporting documents are required?
A: Nothing more than the standard documentation for any mortgage. See " What are my next steps?" for examples of the document requirements. > Back to Top

Q: What are my costs?
A: As a new client, we WAIVE the normal processing fee of $1500 per property. New Clients Receive Their First Transaction FREE. That means absolutely NO COST out of your pocket other than the 5-10% downpayment, which is applied directly to your equity. The independent management company charges 15% out of the rent payment. You do not pay this in any month when the property is vacant, but we pay your mortgage payment in any vacant month for the first 12 Months.
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Q: What’s the catch? Is there a long-term obligation?
A: The company does everything, and you get all the net profits from the rents and the final sale. You can sell it, cash out, and end the contract at any time with no penalty from us. Or, keep getting the rental income as long as you want. You can use the designated property management company to manage it, and have your mortgage payments guaranteed, or you can use a different company and manage it yourself. There is no obligation to continue, and no obligation to do any other deals.
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Q: So I can cash out at any time, or take it over if I want?
A: Yes. You can do whatever you want with the property, with no more limitations than any other Investment property. It’s yours, not ours.
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Q: What about insurance?
A: Fire and damage insurance is included in the monthly mortgage payment, covered by the rent.
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Q: So why do you need me?
A: Our focus is on providing affordable housing. Our profits come primarily from our negotiations with the cities, who often partner with us in the developments. Credit-Investments free our cash reserves for appraisals, title, closing costs, etc., and to create more affordable homes for more families in more cities. The $1500 processing fee, which is waived for the first property completely, also helps to offset some of these upfront costs the company bears in the program.
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Q: How soon can I get into a house and make money?
A: After you complete the initial application and interview with a loan officer, we must receive all of your support documents. As soon as we receive them, you will be placed in the Property Acquisition Queue for the next available property. From the time you are approved and in the Queue, it could take as little as 60-90 days to be matched with a property.
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Q: How many houses can I do? How much can I make?
A: You may invest in up to 10 homes each year, based on your credit and income. Your profit depends on the property, and we give you a complete prospectus on each in advance.
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Q: Are these new homes, or rehabs? Where are they?
A: Both new and rehab, in markets like Kansas City, Cleveland, Louisville, Memphis and other stable areas with modestly-priced homes.
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Q: Are these "Section 8" houses?
A: Although in some cases HUD Section 8 Housing may be applicable, for example, in a major rehab of an apartment complex, most Lucian Development homes are built so families can afford to purchase them. Lucian Development does not generally focus on HUD Section 8 Housing. Where the homes are rented, the objective is often to do a lease-to-own, unless the credit-Investment is more interested in a long-term rental property. Instead of relying on programs like Section 8, Lucian Development works closely with the city and financial partners to get renters and buyers approved on the homes, so the Investment can cash out and hopefully reinvest again, and so the family can become owners instead of renters.
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Q: So are these inner-city slums or projects? Are these like "slumlord" properties?
A: Lucian Development does not engage in properties that fall into traditional "government project" or "slumlord" categories. The company is committed to building high quality homes and rehabbing homes of value, not junk, primarily in urban areas - within municipal boundaries or city limits, or outside of the city itself (but not far-flung suburbs). Some are subdivisions of hundreds of homes, others are scatter-site developments of dozens of homes. In every case, city and financial partners have targeted an area where they need affordable worker and family housing.
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Q: But can't you make more on bigger, more expensive houses?
A: Possibly, but that is the most overbuilt market in the country. Supply and demand means that the pricier houses, built to make the most money, are also the ones most affected by market bubbles and bursts. Lucian Development literally "creates" its own market, by creating value in houses and communities that didn't exist before. Our philosophy is that making quality housing more accessible is the basis of building thriving communities. Credit-Investments are for profit, while becoming the instrument of change for families. Because each Investor can do up to 6 houses per year (depending on credit and income), there is plenty of profit to be made while doing NONE of the work!
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Q: How risky is this?
A: While no investment is “risk-free,” real estate is historically one of the safest, because it is secured by “real” property. Credit-Investments in general have fewer risks than lone Investments. Lucian Development’s municipal partners often provide us with entire blocks of property, and waiting lists of pre-qualified renters and buyers. This gives an extra “cushion” against market swings or “bubbles.” We share these benefits with you as immediate equity in your property. Plus, the company pays your mortgage payment for up to 12 months if the house is ever vacant.
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Q: How does the 12-Month Limited Mortgage Payment Guarantee Work?
A: There is no requirement to use our desingated third-party management company. For Clients who choose to have the designated property management company manage their property, Lucian Development will also guarantee their mortgage payment for any month the property is vacant. Like any guarantee, this one has certain limitations, but they all make common sense. We do everything we can to take away as much of your risk as possible. We encourage you to read over the complete guarantee which is included in your initial paperwork.
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Q: How will this affect my credit?
A: Each property is income-producing, and we pay your mortgage if it’s vacant, so it should create only very minor effect on credit. Your information is only used with your permission, on properties you approve of. And, you get Credit Privacy Protection Insurance for as long as you are in the program.
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Q: What if I want to invest cash, or rollover my IRA or 401K for tax-deferred investment?
A: We have programs for cash and rollover Investments, depending upon how much you have to invest. Contact Us for more information on these other programs.
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Q: What are my next steps?
1: First, complete and submit the Credit-Investment Application

2: Contact Us for a pre-interview and to get any other questions answered

Then

3. After we have received your application and completed your pre-interview, you will receive a packet with full instructions and checklists of documents required. Begin gathering the supporting documents, which will include:

   a. Copy of your drivers license
   b. Last two years' tax returns and W-2’s
   c. Last two pay stubs
   d. 2 months' bank statements (all personal, business and investment accounts)
   e. List of any other income sources (retirement, social security, child support, etc.), and any other real estate

4. Return the completed packet and submit with the support documents. All documents must be received before Client may be added into the Property Acquisition Queue.

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