Realtor · Phoenix, AZ · Member since 2014 · 8 posts · 0 votes
In Phoenix, AZ I have a client that is an experienced home remodeler/flipper working in the high demand/ high return Biltmore, Arcadia, and Phoenix historic districts.
The opportunity is that my client is offering to pay high returns secured by his real estate projects. Project durations are typically 6 to 9 months.
Client is offering to pay 15% for 100% financing for acquisition and value-add rehab. Average projects run between $250k to $275k on homes with ARVs of $350k to $400k.
Client is offering to pay 20% for GAP funding (rehab amount only). The average rehab/remodel is $70k to $100k.
Passive high-yield income secured by real estate. Please contact for more info.
Realtor · Phoenix, AZ · Member since 2014 · 8 posts · 0 votes
11y
Hi Jared,
Apologies for the delay. To address your question, my client is a professional home remodeler and house flipper. I get paid by creating more opportunities to do more deals....meaning, the more investment capital he has, the more houses he needs me to buy and sell for him.
Realtor · Phoenix, AZ · Member since 2014 · 8 posts · 0 votes
11y
For the private money investors willing to fund 100% of the project, first lien position is definitely provided. But in a case like this, the GAP is provided for in the first lien itself.
In my client's case, the renovation projects are acquired with funds from lenders that provide only 90% of acquisition cost, and sit in first position. Then the GAP funds are what is needed for the major remodel and closing costs. The lien for the GAP is held in 2nd position, and paid at a higher rate than the first. These GAP loans are not without risk, but pay higher returns.
Thanks for your question JScott, and your contributions to BP!
My group may be interested in the gap funding, but would start off lending with a smaller loan amount before we are comfortable bumping up the origination volume on our loans with your group.
So long as the sponsor is solid and we are secured via 2nd lien, we would be able to make something work. Would ideally be in the 30k - 50k range on our first deal with you. Shoot me a PM if you'd like to discuss further.