I recently had a general contractor call me about the distressed homes we sell to investors. He was looking for work for himself and his crew. He is a licensed contractor who, like many, found themselves not having as much work due to the economy. His intent was to offer his construction services to buyers of the homes we sell. I had a better idea.
We both sat down and came up with a plan for him to use hard money to purchase high end properties to flip, which then gave him and his construction crew work for a month. The hard money lenders assisted him in buying three homes in April from me.
All three of those homes are almost done, work has been provided for several crew members, and the hard money lenders successfully funded all three properties. The use of hard money lending can be extremely helpful if used wisely.
A total of three homes was purchased for $757,000.
The cost to upgrade all three homes was $189,000.
After the homes sold, the total profit was $226,890.
That is a net return of 25%.
Written by: Clint McLaughlin – Sales/Acquisition Agent at Altura Investment Realty
Clint can be reached at 619-890-9299