Novations in Colorado Springs and surrounding areas using private money

[Brian Canady]

We have been doing novations in Colorado Springs with lots of success. 

We have been finding distressed sellers who don't have a ton of money, but do have a lot of equity. Most of these are cosmetic flips. These are mainly the baby boomer ge

neration. We negotiate to keep the mortgage in place with the seller, which is usually under 4% interest rate. (I have one right now that is 2.125% interest rate.) We agree to make the mortgage payments while we flip the property. In some scenarios we even put the person(s) in a hotel or transitional housing for 3-6 months while we flip the property. 

We bring in private money to fund the flip and the bills for the next 6 months. This is typical, but depending on the deal, we might ask for more time. We pay out our PML's 10% Annually with no payments until the property sells. Most of the time, the property sells within 6 months and our PML's make 20% ROI on their money.

Once the home sells, everyone gets paid. Everyone wins. If you have any questions on how I structure these deals or how I find my PML's, let me know. I am an open book. 

Also, if you are interested in partnering in anyway, let me know. Id love to talk more about it. Below is a picture of a living room we updated with a novation. We ended up buying this townhouse subto and keep it as a furnished rental.