We provided a short-term loan for a father and son real estate investing team. They had a crystal clear understanding of the requirements of this project, as well the scope of work. The renovation amount was $85,000 and they absolutely blew the average days to renovate out of the water. They completed the renovation within 2 months, and then they refinanced us out. They held onto the property for a few years and ended up selling in 2019.

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

The Father and Son team were very well trained and had the capital requirements to meet my new investor (less than 5 completed deals) requirements. They had a very detailed scope of work provided and they were acting as the GC, by coordinating all the trade skills. The location was solid due to the proximity of Eglin AFB, so their ultimate goal of holding for a long-term rental made sense in the market.

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

I met the father at a local real estate club called the Pensacola Investors Guild or PIG. Great group of investors, which offers solid content and training.

How did you finance this deal?

We financed this deal using our proprietary method of "Turn-Key" Private Lending. I had multiple investors, some military buddies and friends, all participate in a 1st position loan. We provided 80% of the purchase and 100% of renovations as a 1st position loan, and I serviced and handled the ongoing draw inspections, draw approvals, and collecting/ distributing monthly interest to each investor.

How did you add value to the deal?

By providing a quick close, and ease of processing and underwriting I allowed the investor to be able to close within the time frame they had committed to with the seller. For our capital investors, they had a truly passive form of investing, where everything was managed and handled by a professional team and they sat back and collected monthly income checks. Truly a win-win-win for everyone involved.

What was the outcome?

The borrowers ended up completing the renovation in record time, $85K in less than 2 months. They lined up a 30yr loan with a local bank and held onto the property, renting it out for another two years and then sold the property for quite a bit more than what they originally invested. I believe if my memory serves me right, they ended up with a 400%+ return Cash-on-Cash!

Lessons learned? Challenges?

the one thing about this investor was their temper. Every little thing ended up be an emergency, and needed to be addressed like the President of the United States was visiting that night. If there is one thing that investors should value is the ability to approach any issue, with a healthy dose of patience and calm.