Updated 2 months ago on .
Deal #2 — here’s how it played out
Investment Info:
Single-family residence private money loan investment.
Purchase price: $15,000
Cash invested: $40,000
Sale price: $87,000
Borrower : Kasagrande LLC
Amount Funded : $40,000 (100% LTC)
Exit Method : REFINANCE
Appraised Value at exit : $85,000
Rate : 5% / month
Total Completion Term : 4 Months
Profit / Month : $2,000
Profit Made By Lender : $8,000
New Lenders with smaller Capital, then work your way up.
What made you interested in investing in this type of deal?
Did my own evaluation of the deal, saw an opportunity to make $8,000
How did you find this deal and how did you negotiate it?
Through our private lending network. The borrower needed 100% of the construction costs covered and we structured it around a clean exit via refinance.
How did you finance this deal?
Private capital from one of our investors at 5% monthly returns.
How did you add value to the deal?
Provided fast, flexible funding that a traditional bank couldn’t. The borrower got what they needed, the investor got paid
What was the outcome?
Deal closed in 4 months. Appraised at $85K at exit. Investor walked away with $8,000 on a $40,000 deployment with 40,000 returned back of course
Lessons learned? Challenges?
Straightforward deal. Having the exit method defined upfront made everything move faster.
