High Yield Returns Through Private Notes and Hard/Soft Money
I have loads of cash flow deals in the Lafayette/West Lafayette market but not enough private money to keep up with all the hottest deals.
If YOU would like to take that cash and put it to work for 1 to 2 months with my team I would love to speak with you. I mainly deal in duplexes but am willing to snatch up a SF is it the numbers works for all parties of the deal.
I have a great relationship with the local banks and have committed letters for permanent financing so the private capital can be quickly returned.
Scenario 1) of typical cash flow duplex cash flow after all rehab is completed and rented.
Purchase Price $30,000
Rehab amount $9,500
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Total amount for rehab and purchase $39,500
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ARV of Duplex $69,000
Equity $29,500
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INCOME:
Gross Income $12,120/year
Vacancy/Credit Loss (7%) $848.50/year
Effective Gross Income $11,271.50/year
EXPENSES:
Real Estate Taxes $1,150/year
Management (8%) $902/year
Maintenance (5%) $564/year
Capital Expenses (3%) $338/year
Reserves (3%) $338/year
Water/Sewer $600/year
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Total Expenses $3,892/year
% of Expenses %34.53
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Net Operating Income (NOI) $7,379.50/year
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Refinance of 70% Loan to Value (LTV)
$48,300
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Spread between Purchase, rehab, and bank refinance
$8,800
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Typical private money return:
2-5 points on the total money borrowed + 9-12% interest
I have loads of cash flow deals in the Lafayette/West Lafayette market but not enough private money to keep up with all the hottest deals.
If YOU would like to take that cash and put it to work for 1 to 2 months with my team I would love to speak with you. I mainly deal in duplexes but am willing to snatch up a SF is it the numbers works for all parties of the deal.
I have a great relationship with the local banks and have committed letters for permanent financing so the private capital can be quickly returned.
Scenario 1) of typical cash flow duplex cash flow after all rehab is completed and rented.
Purchase Price $30,000
Rehab amount $9,500
------------------------------------------------------
Total amount for rehab and purchase $39,500
------------------------------------------------------
ARV of Duplex $69,000
Equity $29,500
-------------------------------------------------------
INCOME:
Gross Income $12,120/year
Vacancy/Credit Loss (7%) $848.50/year
Effective Gross Income $11,271.50/year
EXPENSES:
Real Estate Taxes $1,150/year
Management (8%) $902/year
Maintenance (5%) $564/year
Capital Expenses (3%) $338/year
Reserves (3%) $338/year
Water/Sewer $600/year
-------------------------------------------------------
Total Expenses $3,892/year
% of Expenses %34.53
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Net Operating Income (NOI) $7,379.50/year
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Refinance of 70% Loan to Value (LTV)
$48,300
-------------------------------------------------------
Spread between Purchase, rehab, and bank refinance
$8,800
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Typical private money return:
2-5 points on the total money borrowed + 9-12% interest
$39,500 * (5 points) = $1,975
$39,500 * (12% interest) = $25 - 2mths until refinance
Total $2,000 cash made in 2mth
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Cash flow to investor after refinance
NOI $7,379.50/year
Debt Service from Refinance $4,092.00/year
@ 7%, 25 amortized
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Cash flow $3,287.50/year
Jonathan Jura
Jura Enterprises, Inc
P.O. Box 71
Delphi, IN 46923
www.juraenterprises.com