SHORT TERM FUNDING FOR HURRICANE REHABS IN FLORIDA

[David K Edrington]

I AM A SEMI RETIRED COMMERCIAL AND RESIDENTIAL REMODELER. I WAS A FULL TIME FLIPPER AND OWNED RENTAL PROPERTY SEVERAL YEARS AGO AND SOLD EVRYTHING OFF RETIRED BUT GOT BORED AND STARTED DOING JUST REMODELING FOR SELECT PEOPLE BUT NOT FULL TIME. I WAS ALSO A REAL ESTATE BROKER IN MISSOURI AND RAN A LARGE PROPERTY MANAGEMENT COMPANY SO I AM VERY EDUCATED IN REAL ESTATE SALES, MANAGEMENT AND INVESTING.

MY WIFE AND I DECIDED TO SELL OUR HOUSE IN ILLINOIS AND RELOCATE TO FLORIDA TWO MONTHS AGO TO BE CLOSER TO FRIENDS AND FAMILY. WE HAVE BEEN STAYING AT OUR FRIENDS WHO ARE SNOW BIRDS WHILE LOOKING FOR A HOUSE. WE ARE STAYING IN SOUTHWEST FLORIDA AS YOU KNOW JUST GOT HIT WITH HURRICANE IAN. THE HOUSE WE WERE IN NEGOTIATONS ON WAS DESTROYED. SO IN SEARCHING FOR A NEW HOME WE CAME ACROSS A HOME IN FT MYERS BEACH THAT HAD WATER DAMAGE BUT NOT EXTENSIVE. SO TO GET TO THE POINT WE NEED SHORT TERM FUNDING FOR A OWNER OCCUPIED HOME. THE DEAL IS AS FOLLOWS:

ORIGINAL LISTING PRICE WAS $447K

THERE WAS A CONTRACT FOR $440K (BUYER BACKED OUT AFTER STORM)

SELLER IS ELDERLY AND WANTED TO MOVE TO ASSISTED LIVING WHICH WAS WHY SHE WAS SELLING IN THE FIRST PLACE. SELLER DID NOT WANT THE Hassel OF THE REPAIRS.

RELISTED AT A DEEP DISCOUNT OF 200k CASH ONLY AND HIGHEST AND BEST OFFER.

I OFFERED 200K CASH WITH AN ACCELERATION CLAUSE UP TO 220K AS IS, NO INSPECTIONS. THERE WERE SEVERAL OFFERS BUT I WON BECAUSE OF NO INSPECTIONS BUT HAD TO GO THE FULL 220k.

THE TERMS OF THE CONTRACT ARE 10k EARNEST, REMAINDER DUE AT CLOSING WHICH IS10/28/22. CONTRACT HAS NOW BEEN SIGNED BY ALL PARTIES.

IF I WAS NOT A CONTRACTOR BY TRADE THE COST TO REHAB WOULD BE 80k-100k. MY BUDGET BECAUSE I AM DOING THE WORK MYSELF IS 30-40k.

ARV 440K

PP 220K

R 40K

PPR 260K

LOAN 250K (57%) LTV

MY EXIT STRATEGY IS TO REPAIR THE PROPERTY, OCCUPY, CASH OUT REFINANCE, AND BUY ANOTHER ONE.

THIS IS TO BE MY PRIMARY RESIDENCE BUT PLAN TO PURCHASE AS MANY AS I CAN IN THE SAME COMMUNITY. THIS IS A SEASONED SOUGHT AFTER CANAL COMMUNITY WITH GULF ACCESS. THE PROPERTY INCLUDES A BOAT DOCK AND BOAT LIFT. ADDITIONAL INFORMATION ON PROPERTY COMMUNITY ONLY DISCLOSED TO POTENTIAL PRIVATE LENDERS.

THE REHAB WILL TAKE 4-6 WEEKS AND THEN 4 WEEKS TO REFI SO I WOULD NEED THE LOAN FOR ABOUT 90 DAYS. ONCE REHAB LOAN PAID OFF WOULD LIKE TO CONTINUE THE PROCESS WITH A SELECT LENDER THAT CAN CLOSE FAST WITH LIMITED HASSLE. 

[David K Edrington]

I get that and it depends on a buyers priorities. There will always be a demand for coastal properties regardless of the risk. I've toured The Villages in central Florida and I see that development similar to Babcock. The difference is Babcock started as a more environment friendly development and if continued will be very successful.