50%+ Annualized ROI for a simple investment
We have raised $50,000 and talking to more investors everyday. Get in now before it's too late. We’re looking for an investor (or multiple investors) to provide the remaining $250,000 GAP financing for this great flip opportunity in Studio City, CA. The group is buying the property for $1,260,000, which is below market value. We project the actual retail value of the home in its AS-IS condition to be around $1,360,000. The team is walking into about $100,000 of equity just as it stands right now. This is a highly desired neighborhood in Los Angeles and this property is a steal.
The group will be doing a simple, high-end $150,000 cosmetic rehab that will yield a projected resale value of over $1,800,000 very quickly, maybe even $2,000,000. Similar homes in the area are selling for over $900 a square foot. At a conservative $725 psf that will put the price north of $2,000,000.
Call Steve at 310-948-8585 or email him at [email protected]
Below we break down the profitability analysis of this based on the very conservative $1,800,000 price or only ($642 a square foot).
MONEY BREAKDOWN:
The breakdown of the invested money is as follows:
$1,260,000 Purchase Price
$1,008,000 Initial loan towards the purchase of the home – Provided by 1st Trust Deed Investor
$150,000 Remodeling Budget
$300,000 Gap Financing – Will cover the initial remodel costs, down payments, etc… (the current buyer will be bringing about $100,000 into the deal as well)
$1,410,000 Purchase price + rehab
$10,000 Designer + Project Manager
$40,000 Financing costs + closing costs + utilities + taxes + insurance + title and escrow etc…
$60,000 6 months monthly payments
$90,000 Real Estate Commission
$1,610,000 Total
$1,800,000 Resale Value
$190,000 Gross Profit Margin
The group is looking to walk away with about $190,000 profit on this project at $1.8M resale, and over $380,000 at a $2.0M resale.
RETURN ON INVESTMENT:
The investors (YOU) will be receiving 40% of the profit from the sale of the project. This would equate to approximately $76,000 paid to investors in the projected 6 months time frame. That would be over a 25.33% return in 6 months time or if the project was annualized over 12 months it would yield 50.66% based on these estimates. The loan will be structured for 12 months, but we project it to be paid off in the next 4-6 months.
Even if the property sells for the low end, let's say $1,800,000, you still walk away with a return that will far exceed other traditional investments. It is a very practical and very lucrative endeavor. If it sells for $2,000,000 the profit would be $380,000. 40% of that is $152,000 which would yield a 50.66% ROI in 6 months or 101.12% annualized. The sky is the limit on this one!!
Your investment will be securitized by a Joint Venture agreement, and shares of the holding entity LLC (that will own the property) and Promissory NOTE, so you are well protected.
Los Angeles Market is hot!!!
Read these articles and you'll know your investment is solid!!
http://private-money-loan.com/los-angeles-home-prices/
http://private-money-loan.com/u-s-home-sales-highest-past-decade/
http://www.private-money-loan.com
These opportunities are usually located in los angeles, orange county, southern California, palm springs, huntington beach, CA. This is not traditional financing or hard money or private money. Many lenders who provide hard money financing or private money financing are not gap investors, so we are looking for true private individuals who are looking for solid ROI (return on investment) investments by being part of new property acquisitions on properties that are for sale. These opportunities are primarily for single family residences that are fixer uppers, fix and flips, need TLC and are hangman specials. So please call us if you are interested in gap, or jv, or being involved in a joint venture capacity on this amazing house flip opportunity in the amazing neighborhood of Studio City in Los Angeles California.
Call Steve at 310-948-8585 or email him at [email protected]