Starting 13th rehab w/160% owner financing - Posted by Rolfe Kurtyka

Posted by Eric Fl on November 12, 2000 at 20:52:02:

CONGRATS!!! It’s nice to here…this just gives my wife and I more “inspiration” to go on in this REI buisness. I just hope that we can make the same relationships with investors.

Starting 13th rehab w/160% owner financing - Posted by Rolfe Kurtyka

Posted by Rolfe Kurtyka on November 12, 2000 at 19:04:03:

Happy Day!

Renovation #13 - The crew starts tomorrow! Well located vacant foreclosed 2/2 duplex, $70,000 purchase price, needs about $40,000 - $50,000 rehab. My total costs will be $110,000 to $120,000. Comps at $165,000. This is the 6th property I’ve purchased from this seller, a wholesaler who will now sell to me for no money down, 11% with 6 month balloon. Seller will also loan up to an additional $50,000 for construction, at 11% plus 5 points on the construction loan balance. Both the CD and the construction loan are to be paid back when I refinance. At an 80% L/V on a $165,000 appraisal, I’ll get a loan for $132,000, enough to cover all my costs and any closing and loan origination fees. The result? No cash in the deal, $33,000 equity, and $400 per month cash flow. The annual return on that $33,000 equity, including cash flow, equity build-up, and a conservative (for this market) 4% appreciation, will be around 40%. Also, just closed on rehab #12, a 3 bdr sfh, which I sold for a $20,000 profit.

At the heart of these deals is the relationships I have built with wholesalers. It’s taken 3 years, but it’s been worth it! It can, and it will, be done!

God hunting; Rolfe

Re: Starting 13th rehab w/160% owner financing - Posted by NICK(AL)

Posted by NICK(AL) on November 13, 2000 at 08:25:41:

Congratulations on your success. I am working on my third property but would love to benefit from your knowledge. Thus far I have not ventured out to find “wholesellers” as you are describing. My deals have come by-way-of forclosure through HUD and VA. So far they have been fairly low risk and I have been able to do most of the rehab myself. The last deal I did generated a small equity position and some monthy cash flow. I was also able to cover all my cost and cash out some money for the next deal.

I am looking to become a little more adventurous because I have been able to strengthen my finanacial base. I understand that you have built your relationship with your wholeseller over years but, if you can share with me where to look for whole sellers such as the one you have I would appreciate it greatly.


Nick (AL)