Investing Now... Rehab to Retail Series Part 1

From acquiring, to investing, to repairing, to staging, to appraising, to inspecting, to putting it on the market, to open houses, to listing, to contracts, to actually selling… the process of investing in and selling a home from start to finish can be confusing and a daunting task. We want to make it easy! We are working with a new home that a private lender has invested his money in to yield a great percentage. We are the experts in the field of home acquisition and investments. This particular home has just been acquired and is in the process of getting repairs and getting ready to go on the market… SO we have decided to do a series of blog entries following this home and it’s investors from the beginning to the day it sells. 

Here is our first entry. ENJOY! 

++++++++++++++++++++++++++

Henrico County Home - Stage ONE/Before

Here is some background on this adorable little home in Henrico County: This home is a 3 bedroom/1.5 bath located in Henrico County, Virginia. The last recorded sale on this home was in 1994 and it was sold for $53,000. One year ago it was put up for sale and listed on the MLS (Multiple Listing Service) for $109,900 and did not sell. A few months later this adorable home was foreclosed on and introduced, once again, to the market at $95,900.

What we are doing: My companies, Cheap Richmond Houses & Just List negotiated with the bank to purchase the house for $66,100 and to close in 45 days. As time went on, we continued to watch a leaky roof do significant damage, in addition to other problems around he house. Therefore, we worked with the bank to renegotiate our contract to include a credit of $5,850 for roof repair bringing the total price of the home down to $60, 250. We did this knowing that we can put around $22,000 in repairs into the home and deliver it to the market completely renovated in about 15 days. 

What is the next step?: Our next step was to determine the financing on the acquisition of the negotiated price of $60,250 to also include the $22,000 in repairs. We have decided to use a private lender. Using real estate as an investment for your IRA is a GREAT way to succeed financially. This private lender was truly sick and tired of losing money in the stock market, therefore he loaned 100% of the cost of acquisition and repairs at an interest rate of 8%. For us, we were able to receive very easy funding, including no bank fees, and no mortgage payments since his interest in accruing until we pay him off. For the investor, he is very happy to finally enjoy a yield on his money. He has not earned anything close to 8% in a very long time, making the decision to loan us the money very easy for him.

The key to all of this is to create and foster a win-win scenario for both the private lender, borrower, and/or investor. We customize the lending solution directly with the private lender to be sure he receives an acceptable return on his investment.  His funding is then secured with a first position deed of trust and promissory note on this house.  We have been able to create a very easy transaction to satisfy the both of our needs on this property.

We are so excited and honored to be working with this particular investor and we are so eager to work on this home and get it ready for sale. 

Please contact us if you would like to work with us as a financial partner and put your money to work at a great yield. We ARE the experts in real estate investing. Let us know what you need and we will be HAPPY to help! Contact me at: Jim [at] Cheaprichmondhouses [dot] com.

Our next entry on this home will highlight the renovations we are doing! Check back.