Condo Community on the rebound in Lithonia, GA

[Philip Bashaw]

SEEKING ADVICE AND/OR EQUITY PARTNER

I am looking for an equity partner for my Lithonia condo project. I have an excellent construction team in place now that get's things done quickly. They are not cheap, but they move quickly and get it done.

I'm looking for a 50/50 equity partner to split the profits, rents and non refundable lease option fees with on this deal. I have everything in place, just need the funding...this will property will take approx 3 years to run through, as there are a lot of properties to acquire over the next several months.

I have the inside scoop from working directly with the HOA board, the property management company and their attorney to acquire up to 30 properties in this one community. Plus, I already own one in the community that could be used as an office and/or model home while we renovate the rest. There are 4 properties available right now! More on the way...

Here's the problem. Comps are crap because it's been all foreclosure sales, tax sales, quit claims, etc...so my plan is to acquire all I can at a special price and terms from the HOA that I have negotiated. Regardless of what is owed, I pay no more than 10K per unit. The average rehab cost per unit will be 25K. HOA fee with assessment is $280 per month and insurance will be $75 per month, so $350/month expenses. We will be able to collect $850/month in lease/purchase payments and $4000 non-refundable lease/purchase deposits after each unit is rehabbed. The ARV's will be 65K-95K once the community is revitalized in in 2 years and most distressed properties are acquired and rehabbed.

At the 2 year mark, we will record some owner financed deals, set the comps and then sell off our whole inventory and cash in. The profits are looking really good for an equity partner getting a 50% return on their money for being patient. The profits look good for me as well and it makes me wish I had a rich uncle that would fund this deal for a nice family discount! However, I don't have such an uncle, but I do have the BP community that may be able to guide me and possibly lead me to a funding source

Thank you in advance,

Phil