Purple Pliers, Inc. is seeking $35,000 for this real estate project. The property is located at 424 South

Shamokin Street Shamokin, PA 17872. The property is in need of extensive repairs and upgrades. The

home is being purchased for $5,000. There are 3 bedrooms and 1.5 bathrooms. The home has 1412

square feet of living space with a lot size of 0.09 acres.

There will be new flooring installed in the kitchen as well as adding upgraded countertops. The entire

interior will get new flooring and be repainted. The bathrooms will get complete remodels. The

landscaping will need a great deal of clean up and the deck will need refinished. The original rehab

estimate is $30,000.

The ARV (After Repair Value) of this home is $84,000 based on an ARV appraisal completed on August

1, 2013. The projected all cash profit for this property is approximately $41,050. The profit will be

split 50% to the lender and 50% to the investor. A $35,000 investment from the lender will yield a

return of $20,525 or a 56.65% ROI.

The area is a bit depressed so not many people are rehabbing properties here, so when a rehab

comes on the market, it generally doesn’t last for very long. We are expecting that once the

renovations are completed, the property will sell fairly quickly. We are estimating total project to

take 6 months from beginning to end.

 

Profit Breakdown

After Repair Value: $84,000

Purchase Price: $5,000

Estimated Purchase Escrow & Vacant Policy Insurance: $1,220

Realtor fees to sell and sales-escrow expense: $6,720

Total Investment Cost / Purchase Price - repair costs - purchase escrow: $36,230

PROJECTED ALL CASH PROFIT: $41,050

Lender’s profit after split with investor: $20,525

Lender’s Return on investment if property take 12 months to sell: 56.65%

Projected numbers are based on estimates and evaluations made by the drafter of this document. You should consult your own professionals for advice regarding the projections. You understand that the drafter is not making any professional recommendations whether accounting, legal, real estate, or otherwise.

Contact us at purplepliers@ptd.net for more information.

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This deal is no longer available but I have other deals.  Please email me your requirements and terms on loans to purplepliers@ptd.net

 

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