6 Month Short-Term, Interest Only Loan - Tampa FL

[Edwin Epperson]

Investment Info:

Single-family residence private money loan investment.

Purchase price: $197,000
Sale price: $307,500

I provided a private short-term interest-only loan for a local Fix & Flipper. The partners had a falling out and my borrower had requested enough capital to purchase out their partner. They did not request any cash out of their investment. We closed in 7 business days, and they only had the loan for just under two months. When they sold they were able to keep 100% of the profit without having to split it with their original investor.

What made you interested in investing in this type of deal?

I appreciated that the construction was already completed and that the borrower was willing to leave their capital in the deal. They simply needed their business partners' capital returned to them, along with the HM loan from a previous lender.

How did you find this deal and how did you negotiate it?

I had met the borrower via one of the Facebook groups I am a part of.

How did you finance this deal?

I utilized mine and a few investment partners' capital to make the loan. I held the note, and serviced the loan for the < 2 months the borrower paid.

How did you add value to the deal?

I facilitated a quick close due to the familiarity of the location and the property.

What was the outcome?

The borrower sold the property and we were paid back in less than 2 full months.

Lessons learned? Challenges?

A quick closing is sometimes the difference between a real estate investor's deal going well or not so well. I am focused on solving problems.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

The borrower took care of this loan. We did use a local title company called AMZ Title, they are local to Tampa, FL, and I highly recommend them if your looking for a real estate investor title company!