prosper-inc’s posterous

STUDENT CREATES A WIN-WIN SITUATION - Prosper Inc Success and Prosper Inc Success Coaching

One of our real estate contacts made us aware of a property which was coming out on the multi-list for the next day. We made an offer on the property with contingencies on inspection and loan approval to lock it down that night. We did get it locked down and gained control of the property for the offer of $115,000 which was the price of the house. The house was mostly remodeled and in need of repairs. After the inspection by our construction leader, we put the pencil to the deal using the short form. We used the short form to determine the offer amount based on our training on the short form. We looked at the fair market values of the houses in the area to determine the sales price of the property and priced the house for a quick sale at $145,000. After holding costs and estimated repair costs of $24,000 and profit of $20,000 we came up with an offer of $93,000. We found out the lender would take a short sell before we made the offer, so we decided to offer $90,000. We were countered at $92,000 and accepted the counter. Our next step was to find the financial resources using OPM. I found someone to front the money for the project for 50% of the net on the deal which is $10,000 for them and us. We have a closing date on 6/29. We will be assigning the contract to the financer so we have $0 dollars in the property. We are protecting our interest in the deal with a side agreement on the split of the proceeds. We have our construction crew ready to start the next day and will be out of the house in 2 weeks after construction is started. The team is working on having a buyer for the house before completion of the rehab. This is a win for the financer, for us, for the real estate team, financial broker, and the customer who will buy the house $10,000 below fair market value.

Clyde & Cynthia B.

Rodgers, AR

Prosper Inc Success and Prosper Inc Success Coaching