Real Estate Investment Opportunity

[Mario Taboada]

 I have a Real Estate investment opportunity for which I need funding.

 This funding is for the purpose of Purchasing, Rehabbing, and Resale of a Single Family Residence w/ 2 Bedrooms 1 Bath and Living Area of 945sq. ft.

Here are the initial particulars and more information is available upon request and level of possibility for funding.

 Transaction Logistics and Structure:

The Seller has agreed to sell the property to me for $40,000.00 and will accept $29,500.00 at close, and, he agrees to take a “Hold and Wait” Second Mortgage for the balance of $10,500.00 at NO INTEREST and Balloon Payment at Re-sale, Close. I’ll pay off the Sellers 2ndwith funds from the Down Payment and Funds for Purchase I receive from a New Buyer; whom also, is right now, in the process of qualifying for VA Loan with sole intent of purchasing THIS HOUSE!

I’m working out the details now, to coordinate the timing, so that the New Buyer’s Loan does not fund before I finish the work. I do very much realize this house has to meet stringent quality and safety standards as the Loan will be a US Gov. backed Loan.

 Closing Instruments and Agents:

First American Title – Klamath Falls, OR 97601

404 Main Street – Klamath Falls, OR 97601

Phone: [phone]

Fax [phone]

Dawn Demarkee-Schmitt

 

·Non Broker Real Purchase and Sale Agreement

·Note and 2nd Mortgage

·HUD1

·Normal Disclosures and Releases

·Loan Application 1003 (Where applicable)

Encumbrances:

There is a 1st Mortgage of $20,600.00; Tax Arrears in the amount of $2,000.00.

Seller will pay off 1st Mortgage and Tax Arrears at close and convey a clear title.

Evaluations:

According to the Klamath County Tax Assessor the Subject Property RMV (Real Market Value) is $55,000.00 in “AS IS” condition and, while its in its “AS IS” condition, it needs about $18,000.00 in rehab, Paint, Floors; Fix-up Materials, New Metal Roof, extra Labor, Permits, Waste Containment and Haul etc. 

The “After Repaired Value” (ARV)   is $77,000.00

Funding:

1.$29,500.00 to purchase

2.$18,000.00 -Rehab and Repair all inclusive

3.$4,775.00 -Holding costs (Estimated for 9 months but more like six months)

4.$1,000.00 - Closing Costs, Title Insurance (Estimated)

5.Total $53,275.00 or 69% of ARV

I can offer and guarantee to pay a 12% interest with a minimum return of no less then six months.

For Accountabilty of Funds for Rehabb I don’t mind opening a separate Escrow account that provides payment upon submission of Purchase Order and Delivery of Goods Bill. I also need the sum of $1,500.00 Cash Out, at Close for recoup of start-up operating cash.