The company's structured investment plan and strategic process utilizes a three-step approach: (1) Purchase; (2) Rehab; and (3) Sale. The last two years in a separate private practice has proven this model a success.
First, the company locates potential properties for Purchase by analyzing the local market, performing due diligence, and engaging in property analysis vetting the appropriateness and profitability for our investors. We monitor the foreclosure status, obtain lien and tax liabilities, interface with equity trust and/or title companies to ensure clear title before making any offers for purchase. The company also performs a Rehab Analysis, using a structured calculation for proven accuracy:
Purchase Price + Rehab Cost = or < 65% After Repair Value
If Rehab Analysis meets the standards and goals for investment, the company will purchase the property with the investor's approval.
Second, the company plans and coordinates the Rehab of the property. Using its vast experience and relationships with vendors, contractors and handymen, the company arranges rehab in a cost-effective and value-driven manner. This often involves renovations to the roof, bathrooms, kitchen, floors and painting of walls.
Third, the company manages and effectuated the Sale of the property. This includes development and execution of a property-specific marketing plan. The company arranges open house times and showings. Working on its own or through the long-term relationships with hundreds of realtors, the company completes the sale of the property, including coordinating and participating in inspections and closings.
After the investment property is sold to a buyer, the company will transfer the investor's principal loan investment plus 15% interest back to the investor. The investor may also roll the investment into a new property.