GETTING PAID upfront, GETTING PAID during, GETTING PAID later

[Shiloh Lundahl]

Yesterday we just leased out our most recently finished property in Mesa, Arizona. Here is the story.

We bought the property from a wholesaler off of a website for 93k with the hard money lender putting in 90k. A newer inverstor looking to learn how to flip in Arizona partnered with us on the deal and came in with 37k for the rehab. The rehab went over budget and I put in an additional 11k into the rehab and with the holding costs of about 6k my total into the property was about 20k. 

We bought the property at the beginning of November and finished the rehab towards the end of February. Here are some pics:

The appraisal came in at 195k. We close on the loan tomorrow with the bank at 5.29% for a 20 year for 133k. Before we were fully finished we had several people interested in the property and one in particular wanted to purchase it as a seller finance deal. Instead we did a 4-year lease option and gave her a discount because she came in with a 30k option fee.

At closing, the hard money will be paid off, the investor will be paid off with his 10% APR interest, I will get my 20k back, my partner and I will split about 13k and we will cash flow about $150 each a month. When the property finally sells in say 4 years, we will get paid again about 23k each (if it goes the full 4 years).

Getting paid 3 times with no money into the deal is my favorite.