Dealmakers Blog – Ramblings of a Real Estate Mogul

Posted By: Sean Terry | February 13, 2009

We are Done and Ready to Sell to an Investor!!

Please watch Part I, Part II and Part III if you haven’t done so already.

We have been done with this renovation for about a week now and we have a tenant lined up to move in this weekend.  The total cost of the renovation was just under $10,000 which is about $2,000 under budget.  From acquisition to completion the renovation took roughly 9 working days.  This is a great 4 bed 2 bath 1700+ square foot house located in the heart of Phoenix. 

Our company Fortress Investments will sell this property to a qualified investor for $3,500 total out of pocket, leaving $37,500 of guaranteed equity.  We are one of the only real estate investment firms in the nation that has a program like this.

Let Me Explain

We purchase distressed properties like this one on 2521 E Brill and then renovated it and line up a tenant for 12 months.  We sell the property to an investor in this example for $3,500 total out of pocket.  This process is done using a 2 step closing.

1^st Step Closing:

Fortress Investments sells the property to a qualified investor for $3,500 down and $112,500 of no interest, short term seller financing.  The property is worth roughly $150,000, so the purchase price is just under 78% of the value.  Now that the investor is on deed to the property they proceed to the 2 Step Closing.  Remember we cover all closing cost associated with this transaction.

2^nd Step Closing:

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