Tallahassee Private Money Loan For Fix and Flip Investors

[Edwin Epperson]

Investment Info:

Single-family residence private money loan investment.

Purchase price: $35,000
Cash invested: $135,000
Sale price: $375,000

These are the types of projects we love to fund. The investor was a new investor for use yet they had plenty of building experience. They also had a great vision for the potential of this property and planned on using a modern and eco-friendly renovation. We structured a JV with them on this project and they walked away with a great amount of profit. The project did go longer than expected, and we did have to provide an extension, yet the final project was beautiful.

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

The borrower was someone we have worked with on prior projects and approached us about doing a JV together. Because of our relationship, and the investor's proven track record using our capital, we were able to structure a win-win solution where the Investor walked away with 60% of the profits and we only requested 40%. We love creating winning strategies like this and look forward to more projects with them in the future!

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

The investor submitted their loan request on our website and within an hour or so we let them know we would be willing to fund this project and structure a JV option with them. They uploaded project-related documents (no credit score, no proof of income, and no tax returns) and we underwrote and vetted the property and the proposed project. We jumped on phone calls and our manager, Edwin Epperson even met the investor on sight to walk through their plan together.

How did you finance this deal?

We funded this loan using our proprietary method called Turn-Key Private Lending. We had multiple fractional capital investors take portions of this loan while we managed the renovation and ultimate sale of this property. The entire time they received money interest payments, and the borrower and Blue Bay Capital worked to get the project across the finish line.

How did you add value to the deal?

By structuring a JV option we allowed the investor to also put money into the deal that they earned interest on! We lined up capital partners that were willing to take the risk on a JV project all within a matter of days. We even helped the investor identify a new contractor when the original could no longer finish the project. While the end result was a slightly lower profit output due to a longer hold time, all parties walked away with a generous return.

What was the outcome?

We sold the property, albeit later than expected, and our capital partners received their funds back, as well received monthly interest payments. Our investor was extremely grateful for a partnership in the deal, and the ability to think outside the box to get it done.

Lessons learned? Challenges?

Know your local zoning requirements. Do your due diligence with the city/ county to ensure that your proposed plan is feasible and all known variances are accounted for.