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Case Study #1: Buy-Fix-Sell (Flip)
Exit Strategy
Buy – Fix – Sell [Flip]
Address
2527 N 2nd Street
Harrisburg, PA
After Repair Value
$219,900
PA Deals, LLC Sale Price
$94,000 including $7,500 in seller help offered to our buyer
PA Deals, LLC Rehab Estimate
$40,000
Type of Financing Buyer Used
Private
Notes on financing
Our buyer opted to use our Private Financing. He was able to finance 100% of the purchase price, 100% of the rehab costs and most of his closing costs. When our company offers closing cost assistance the amount will be listed on the Property Details page. The loan was given to our wholesale buyer at 12% annually [1% a month with no pre payment penalty].
Services Used by our Buyer
Private Financing – Free
Contractor Referral and Rehab Consulting - $995
Realtor Referral Service - $495
Our buyer closed with us on
January 12, 2006
Rehab Began on
February 15, 2006
Rehab Completed on
May 1, 2006
Total Spent on Rehab
$50,000 – Our buyer decided to do additional work to his property that we did not initially figure on. This decision took him over the budgeted amount of $40,000 but ended up netting him an additional $20,000 profit.
Marketing of the Property Began
May 5, 2006
List Price
$249,900 [this was the highest listed property on this block of this type EVER!]
Marketing Results
Within 5 days of putting the property on the market there was an offer made for $225,000. Our buyer countered at $240,000 and the buyer walked without even making a counter offer. Within 3 days our buyer got another offer, this time it was for all cash and for $249,900.
End Result
After the property inspection our buyer had to renegotiate with his buyer and agreed to sell the property at $244,900. They closed 3 weeks later on 6/20/06 and our buyer walked away with over $65,000 net profit!
Net Profit
$65,000 plus!
Case Study #2: Turnkey Buy-and-Hold Rental
Exit Strategy
Turn Key Buy and Hold Rental
Address
320 – 322 Pine Street
Steelton, PA
Type of Property
4 unit – Two 3 bedroom units and two 1 bedroom units.
As-Is Appraised Value
$165,000
PA Deals, LLC Sale Price
$111,000 including $9,000 seller help to our buyer allowing for a no money down transaction.
PA Deals, LLC Rehab Estimate
$6,000 – The property was fully rented and needed little work. This money was placed in escrow for any “what if’s” that may come up.
Type of Financing Buyer Used
Private
Notes on financing
Our buyer opted to use our Private Financing. He was able to finance 100% of the purchase price, 100% of the rehab costs and most of his closing costs. When our company offers closing cost assistance the amount will be listed on the Property Details page. The loan was given to our wholesale buyer at 12% annually [1% a month with no pre payment penalty]. The buyer used this funding to get into the deal with little money out of pocket and plans of refinancing into a more cost effective conventional loan within 90 days. The refinance will be done at 80% Loan to Value [ $132,000 ] allowing the buyer to roll all of his closing costs into the loan plus pull cash out of the deal. So sweet!
Services Used by our Buyer
Private Financing – Free
Our buyer closed with us on
October 31, 2006
Gross Rents were
$2,370 a month!
Projected Positive Cash Flow
$700 plus a month!
End Result
Our buyer had minor repairs to do in order to stay within Section 8 compliance. After the repairs and the refinance there will be more than a $700 a month positive cash flow. Our buyer did all of this with very little money out of pocket and even after refinancing he will have over $35,000 in instant equity, a positive cash flow of $700 a month after ALL expenses and roughly $15,000 cash in his pocket realized by the “cash out refi”.
Case Study #3: Buy-Fix and Rent-to-Own
Exit Strategy
Buy – Fix and Rent to Own
Address
1937 Boas Street
Harrisburg, PA 17103
Type of Property
Single Family Home – 3 bedroom – 1 bath
After Repair Value
$69,000
PA Deals, LLC Sale Price
$35,000 including $5,000 seller help to our buyer allowing for a little to no money down transaction.
PA Deals, LLC Rehab Estimate
$15,000 – The property needs cosmetics and a new roof but overall is not in bad condition.
Type of Financing Buyer Used
Private
Notes on financing
Our buyer opted to use our Private Financing. They were able to finance 100% of the purchase price, 100% of the rehab costs and most of their closing costs. When our company offers closing cost assistance the amount will be listed on the Property Details page. The loan was given to our wholesale buyer at 12% annually [1% a month with no pre payment penalty]. The buyer used this funding to get into the deal with little money out of pocket and plans of refinancing into a more cost effective conventional loan once the rehab is complete.
Services Used by our Buyer
Private Financing – Free
Contractor Referral and Rehab Consulting - $995
Rent to Own Tenant Placement Service - $595
Projected Non-Refundable Deposit
$2,000
Projected Monthly Rent
$675 a month
Projected Positive Cash Flow
$142.67
Projected Resale Price
$69,000
Projected Backend Profit
$15,502
End Result
After our wholesale buyer rehabs the property and sets it up on a rent to own arrangement with a tenant/buyer [tenant today – buyer tomorrow] it is projected that they will receive a $2,000 non refundable option deposit, $142.67 a month positive cash flow and when the tenant/buyer exercises their option to buy there should be roughly a $15,000 backend profit.
