Remember just a few years ago when you purchased a house
to rehab, by the time you signed the ink the property had gone
up 2% in value. By the time the rehab was complete the value
of the property had jumped 5%. Many rehabbers during the boom
where profiting $50-$100K. The bad news is those days are over
the good news is we can still profit up to $30,000 on a rehab today.
Banks were freely handing out money to fund the rehab. Those
days are over at least now. We now have to depend on private
investors to fund our deals. Rehabbers like ourselves had to
change direction and find a way to get the deals funded. The
solution to the problem was to offer attractive rates of return on
private money. Depending on how much you put in and for how
long, scenario 1 we can offer you up to a 15% return within 6 months.
That's an annual rate of return of $30%. *If you decide to unsecured
the loan in the body of an LLC we can offer you 50% of the net profit
on the 1st rehab and 25% for each additional rehab.
Example Scenario 1: 15% return in 6 months using a 10 year amortization.
$30,000 house purchase
$40,000 rehab cost
$10,000 marketing and other expenses
$80,000 All in.
$150,000 After Rehab Value
$ 10,000 Pay down payment and costs.
$ 5,000 Closing Costs
$135,000 Gross Sale
$ 7,560 Your Net Profit.
Investment secured under the body of
LLC with a partnership agreement.
The same as above except 50% return
on net profit: $45,000
*1st rehab: Your profit $22,500
2nd+ rehab: Your profit $11,250
The Golden Rule that many Gurus were teaching
at the peak of the market was buy any house in any
market and price point and you'll make a ton of money.
Well in today's buyers market the rules have changed
Dramatically (if you still are using this rule then you
should be buying in different markets)
The real estate market is much stronger than it was last spring.
Specially in the 1st time buyers market.
The move up market is flat because most sellers are under water
in their homes either because they took all their equity out of the
home during the boom or they put to little money down and
have only been their home for a few years.
If you are investing in homes to purchase in rehab you
must use the 65% minus actual market depreciation rule.
Purchase the property for 65% of the ARV* minus rehabbing
cost=purchase price - depreciation. I am figuring in 1.75%
a month for depreciation in our current market. Some areas
This business is all about the numbers. If the numbers don't fit,
we don't buy it. We work toward keeping a minimum profit of $30,000.
When working the comparable sales I slash $10,000 off for a quick sale.
This minimizes the risk.
The current property the we are finishing up on is the above example.
We just finalized a contract for this property this week! Full price offer!
We have several properties available that Meet or Exceed
today's new benchmark. All we have to do to lock them up!
Would you like to be IN or ALL in?
I invite you to visit our website http://new-vision-investor-solutions.com
As always send me an email if you have any questions
on the Amazing Opportunities in Today's Buyers Market!
Until next time!
New Vision Investor Solutions, Inc.
888.2485.1410 ext. 701