Asset Type – Single Family Residence (SFR) in a suburban Northeast subdivision of contemporary homes
How Acquired – Online Marketing Response / call from motivated seller
How Funded – “Self Directed” Roth IRA
Objective – “Buy-Fix & Flip”
Scope of Work – Wall demolition and minor repairs; floor tile work; cosmetic improvements in kitchen and bathrooms; new lighting fixtures; interior paint, extensive landscaping and new concrete backyard patio.
Exit Strategy (Outcome) – Rehabbed, then marketed “For Sale by Owner”. Buyer was represented by a Realtor. Accepted the buyer’s offer for more than a 20% down payment and the balance funded via a seller financed note. New buyer was a small business owner and unable to obtain conventional bank financing. Without the option of seller financing, the buyer would have been unable to own this house. Monthly payments provide cash flow through the term of the loan.