Our maximum leveraging alternative is a great tool for both existing owners and deal seekers that want to finance all of or more than the property’s value. For the right properties, we may be interested in supplying the funds to make this a reality. This right property can include low priced homes or land to properties valued well into the millions of dollars.
How it works:
If your goal is to improve your immediate cash flow by receiving a loan that is greater than what the property is worth today, we may have the solution.
This program works best on properties in need of major repairs and improvements. That being said, if it makes sense, our maximum leveraging program might be available for other properties as well. Here-below is an example to better demonstrate how beneficial our program can be:
Example (the problem): Peter owns a medium sized apartment building valued at 2 million dollars today. The tenants are complaining because their units are run down and some will move out if repairs are not done soon. There is two empty run down units that are not generating any revenue. Peter owes 1.8 million dollars and the banks and other lenders do not want to lend Peter additional funds. Peter also owes other personal moneys so even if he was to sell the property, by the time he pays all the selling fees he may end up with nothing.
Example (How we helped): Peter called us and told us about his problem. We examined the property and provided our recommendations. We felt that the improvements needed included modernizing the vacant apartment units so that they can rent and generate revenue, giving the common areas a facelift by replacing the flooring, the doors and repainting and lastly by replacing the heating system and some windows. We then estimated the cost and offered to do these improvement for $500,000. We felt that by investing $500,000 the value would increase by $900,000 from two million to two million nine hundred thousand, hence an additional $400,000 of equity to be made for Peter. By modernizing the units, it is concluded that they will be easy to rent for more money.
Example (the conclusion): Peter is no longer stressed. He sold the property for 2.9 million dollars in 2 months after the repairs were completed. After paying the real estate agent, the lawyer, the mortgage and personal debt, Peter finished with a good amount of money. Around $390,000. This is much better than continuing to struggle and facing possible bankruptcy. This example is fictitious and is used only to describe how this program might work under these circumstances.
Our maximum leveraging alternative is a great tool for both existing owners and deal seekers that want to finance all of or more than the property’s value. For the right properties, we may be interested in supplying the funds to make this a reality. This right property can include low priced homes or land to properties valued well into the millions of dollars.