Thank you for the comment.

The confusion lies in the calculation of ROI. The $27k return does not include the initial investment. The $15k initial investment is part of the $88k “All In”, meaning that the loan was for around $73k, allowing for $15k out of pocket.

That means that the $27k equity capture is above and beyond the original $15k investment. So.. at the end of the day, the deal will return the original $15k, PLUS $27k in profit.

That’s why the deal is at 170%.

Great job! However, I was wondering how the 170% ROI was calculated. By my calculations using the information you provided and the standard ROI formula:

ROI = [(Return - Investment)/Investment)]*100

Your ROI would look more like this:

80% = [($27,000 – $15,000)/$15,000)*100

Now, please don’t get me wrong, I don’t know of another investment that will generate an 80% ROI, but I was just wondering if I was missing something.

Thanks for the submission, great video, and really nice house.

Brian Carter

Then a lot of the rest depends on many variables including the lead partner’s credit and ability to sign on a loan, bank/mortgage guidelines, and a few other things. Bottom line is you need to structure it so that you can close the deals on the front end and back end (refy).

And set it up so that people’s interest are reasonably protected.

How do you structure your partnerships – does one of your partners get the mortgage in their name, and then deed the property to an LLC in which you have an interest?

Who typically puts up the cash required for each deal – your partner? What is the typical split assuming the partnebr gets the mnortgage and puts up the cash?

Many thanks

This is a great story. 72 houses in 2 year, averages about 3 houses a month?

1. How did you find, evaluate, close on, and rehab 3 houses a month?
2. How are you financing them?

Thanks!

We’ve used quite a few lenders for various loans. And the products each lender has constantly changes, because the financial market constantly changes. So, I recommend using investor friendly brokers/lenders and staying in touch with what each has. That’s where staying in the loop is useful.

That being said…For hard money, I recommend Red Door Funding. They also have some refy products as well. We’re working with Blake at Capital Concepts on a few refys as well.

The “all in” numbers are 88k for the property on the video.

Randy,
Brick is nice .. I agree, my market was brick dominant, but I didn’t mind other sidings if the numbers were right.

With hard money there are going to be some costs, but the way I look at it, it is “Cost of doing business”. They provide a valuable service.

On the bath flooring you saw, that was vinyl that went very well with the carpet. Typically, we put in tile, unless the bath is upstairs.