Seeking Funding Partner for Auction Acquisition Fix and Flip – Passive or Active
In Ernest Holdings Ltd. is looking for funding partners to participate in a joint acquisition of real estate at tax deed auctions in various states. The current target market for June are properties located in Ada County, Idaho. Our ideal partners are individuals or entities who are capable of contributing between $20k-$75k per transaction. The original invested amount is anticipated to be returned within 4-6 months, with a 4:5 ratio payout of the net profits after the resale of the property post rehab (6 months+).
Example.
A property is won for $100,000 at auction with an ARV of $300,000. You as an investor had agreed to contribute $25,000 to this acquisition regardless of the final bid. Title is cleared and funding is obtained for rehab and investor cash out. Your $25,000 is returned to you once this is funded, about 4-6 months after the auction. You can keep this or reinvest with us again at auction immediatly. The Total cost of repairs, contractor fees, leverage fees, operations costs, real estate agent commissions, etc come to $60,000 (for example). Rehab period last 1-3 months. The house is offered for sale at a discount to move quickly and sells for $260,000, a profit of $100,000. You will earn a 4:5 ratio of the net profits based on your contributing percentage. Here's the math:
($25,000 Contribution) / ($100,000 Purchase Price) = 25% Contributing Percentage
4/5 of the 25% contributing percentage is 20% Earned.
20% Earned of the $100,000 is $20,000.
In Ernest Holdings Ltd. will provide the entire infrastructure for these transactions including vetting the auction list, physically securing the property including the removal and eviction of an existing tenant, clearing the title, project managing the repair, qualifying for cash out funding, facilitation of the sale, and finally disbursement.
Since we are performing for the investment the entire way, you do not need any experience to participate with us nor are you ever required to visit the property (although we would love to use you as a resource in any capacity you offer – this is a great opportunity to learn more about tax deeds and their process). Together, along with our due diligence report, we will agree on which properties we will seek to acquire and which we will avoid before the auction begins.
If you are interested in learning more about our process and possibly investing with us, please contact Robert at 626-552-9715 or email [email protected]
Note: This is not a solicitation for a hard money loan, seller financing, lease, or creative financing. We are looking to establish a relationship with the investor and potentially work together at auctions in a number of different states.
We hope to hear from you soon!
