Purchase price: $380,000
Renovation budget: $100,000
Closing date: May 18th, 2018
1. $480k (Full Amount) 1st lien position
2. $50-200k, 2nd lien position
5 Payne Rd is located in Elmsford, NY within the Pocantico school district which is a desirable district within Westchester County. We currently have the home in contract to purchase for $380,000, with a scheduled closing date on or about May 18th, 2018 . We are seeking one or two private money lenders to fund the project for the duration of the renovation and resale which we estimated to be approximately 6 months.
Our exit strategy on this property is to renovate the home in 8-12 weeks and put it back on the market for sale. We estimate the ARV (After Repair Value) to be $620K, but with very low inventory, there is great upside for the home to sell for more. After renovation and at the time of close on the home, we will pay back the loan to our lenders in a balloon payment of principle + earned interest.
5 Payne Rd. is a single family house and is located in the Pocantico school district which is a sought after school district in the town. It sits on a an acre of land with a quiet and expansive backyard.
The house is 1,909 sq. feet with 3 bedrooms, 2 full bathrooms. The house is a ranch style that includes a master bedroom and oversized bath and 1 car attached garage. We were able to buy this house at a significant discount due to the motivation of the bank to sell the property quickly. Some of the it’s great features include it’s oversized living areas, spacious basement and bedroom/bath counts. The house is currently in need of cosmetic updates to make it a highly desirable home.
The improvements to this home will encompassed complete inside and outside improvements: We will start by installing all new siding, a new roof, new windows and extensive landscaping. Inside we will open up the wall in the kitchen to make a more open space and install all new flooring. We will update the kitchen and current 2 full baths to modern design that include beautiful tile work in the bathrooms and shaker, soft close cabinets, quartz countertops and a new appliances. Finally. we will update all electrical, all plumbing and paint from top to bottom.
When our rehab will be completed, the house will be completely renovated from top to bottom in high design and ready for buyers to enjoy the home as their own.
A private money loan is a loan that is given to a real estate investor, secured by real estate. Private money investors are given a first or second mortgage lien position that secures their legal interest in the property and secures their investment. Essentially, private money lending is your opportunity to become the bank, reaping the profits just like a bank would. It’s a great way to generate cash flow and produce a predictable income stream – while provide excellent security and safety for your principle investment.
We protect our lenders
Each property we acquire is put through a rigorous evaluation process in order to assess the profitability before the property is ever purchased. You are also provided these documents to secure your investment capital:
We do pay for a title search as well as a title policy on the home just as we would in a typical transaction