So I stumbled across this ad in the marketplace and was wondering if other investors can legally post things like this. Isn’t this an illegal way to crowdfund? They’re not supposed to guarantee and ROI are they?
We are looking for an investor or investors to provide as little as $50,000 in GAP financing for this great flip opportunity in La Canada Flintridge, CA. The group is buying the property at $1,425,000 (with the assignment fee already factored in). This is far below the all in asking price that the bank wanted at $1,567,000. The group will be doing all renovations and additions to the home for a projected total of $400,000 and they are looking to sell it north of $2,800,000 for a $683,000 total profit. The investor pool will split 40% of the profits for a 54% Projected ROI.
The property we are going to acquire in La Canada Flintridge has incredible potential. It is a fairly large home at 2833 sqft on a 18,915 sqft lot, but we are more excited about what the property will become once our team has transformed it. This home is going to be an absolute masterpiece when we are finished. In collaboration with our architect/interior designer, we know exactly what is needed in order to integrate luxury amenities and a modern aesthetic into the design of any property, while taking care to create a functional, attractive living space.
When you have a moment, please look over the presentation attached, as it will give you more insight into the overall concept of what this property will ultimately become. We will be re-imagining the entire home, adding a 1200~1500 sqft expansion, establishing over 4000 sqft of living space in all. Our intention is to create a luxury compound feel with a large privacy wall, also adding a high-end, modern pool with a large deck. All of this should bring the resale value up to between $2,800,000 - $3,000,000 which is supported heavily with 20 -30 comparable sales.
I have full due diligence information so please email me directly at [email protected] or text or call me at 310-948-85**
RETURN ON INVESTMENT:
The investors will be receiving 40% of the profit from the sale of the project. This would equate to approximately $273,200 paid to the investors in the projected 9 month time frame (3-4 months for permitting, 2-4 months for construction, 1-2 months for marketing). Because we are going to be pre-marketing the home very heavily we project it to be sold before the construction is finished.
These projections would deliver a 54.64% return on your investment (ROI) in 9 months' time which yields a 72.85% annualized ROI. The loan will be structured for 12 months out of precaution, but we project it to be paid off in the next 9-10 months.
We plan on expediting the process by following this plan:
1) While the design and permitting for the additions is going on we can be and will be improving the parts of the home that are not having any additions.
2) We can build the perimeter wall, demolish the existing asphalt, build decks, landscape, hardscape, demolish existing structures and remodel other parts of the house during the permitting process to reduce time until we have the final permits.
3) We are going to hire a permit expediter in order to cut the time down to 3-4 months.
4) Our architect has hired on a second architect and CAD drafter as well so all projects will be going much quicker on the design side.
5) We will be pre-marketing the home so it will never hit the MLS. We will do everything in our power to have this sold before construction is completed. We already have a professional artist who will be painting and creating artist renditions for pre-marketing materials. This will be an incredible deal and we will have people salivating over this property.
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