Semi Hypothetical Investment Opportunity

4 Replies

Just curious to see if anyone out there would loan $850,000 for a property that's currently worth about $300,000 needs $550,000 in rehab, but is projected at $1.4mil. 

Current rents could support loan payments up to $4,000/month. Projected rents could support loan payments up to $7,000/month. 

I have an off market deal in mind, just checking the interest in the folks on BP before I pursue it. If you want the raw numbers, I can send them to you just shoot me an email. [email protected]

Hey Roger,

I can do it with approx 10-15% of the Purchase Price down... I'll fund 100% of the rehab! I can probably get you up front draws on the rehab, as well... To get you some specific pricing, get me an application, and check your credit and get me the scores (Credit Karma works), and I'll have you something solid in 24 hrs. All I need is a 600 FICO...

https://p23finance.com/get-started

Originally posted by @Montrell Brown :

Hey Roger,

I can do it with approx 10-15% of the Purchase Price down... I'll fund 100% of the rehab! I can probably get you up front draws on the rehab, as well... To get you some specific pricing, get me an application, and check your credit and get me the scores (Credit Karma works), and I'll have you something solid in 24 hrs. All I need is a 600 FICO...

https://p23finance.com/get-started

Sounds pretty good. Looking more for a silent partner, equity investor, or 100% loan. There it's a 30 unit rental, building will pay for itself and then some, but rehab will be on individual units over the next 4 to 5 years, then 2 years to prove income, refinance, and cash out the investor.

I think that “rehabbing the individual units over 4-5 years” is a horrible plan.....nice renovated units with higher rent tenants next to crappy units/lower rent tenants, constant repairs, noise, activity, etc. Plus, no one is going to loan $500k for rehab and you only rehab one unitat a time.

Buy the building, empty it, rehab it, rent it back up......if that makes sense.  Typically a property that can be bought for $10k/unit is surrounded by other properties just like it....you can’t change the neighborhood.

This is the worst property in the area, ever other property is updated and charging twice the rent. There are 6 vacant right now that would all be flipped instantly, rents would be raised strategically in other units, as units were turned they would be fixed to match. 

I do think that dumping it and redoing it is a better strategy, but couldn't afford to bleed on top of a loan payment this size.

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