Ryan Nealon Rehab Deal

 

Ryan Nealon Rehab Deal

Sonny Side Property Solutions, LLC in Navarre, FL
Ryan Nealon with Adele Nealon

This deal came to us via a friend that had a short spurt of inspiration with working with us in real estate. Through networking, he was able to obtain a lead for us as well as negotiating the deal on our behalf (we did train him prior to meeting with the seller). We were able to lock the property under contract at $75,440 and give about $15,000 back to the seller after the note was paid off. The seller was a tired landlord that had a very bad experience with the tenant who destroyed her property and she didn\'t want to deal with making costly repairs again. A private lender was originally going to buy the property from us as a wholesale, but we decided to rehab the property instead. My wife talked the private lender into lending us the purchase price instead. We funded the rehab using credit cards, a personal loan, and a wholesale deal in the middle of the project. This project was a challenge on multiple fronts. We were delayed getting started due to the lack of funding, permits and a hurricane in the area pulled a lot of the resources, and labor for those in need. Our lender on our previous project was our contractor, and he did not start on this property until the last one sold and we were able to pay him which took a few months. All-in-all, our rehab cost us $55,000, but due to delays in starting (some because of us) and permit holds, we wound up paying more for longer hold time. Our final profit estimate is around $30,000 when we take everything into account. Not bad for a 287-day hold on a $197,000 house. The best part is that we had sold the home18 hours after it hit the market! This one challenged us and stressed us out, but it worked out and we are glad we did it!

Rehab Details

Property City: Mary Esther
Property State: FL
Purchase Price: $75,440
Repair Costs $55,000
Sale Price: $197,000

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Case Study

How did the FortuneBuilders team and resources help you to accomplish this deal?

The FortuneBuilders team taught us about the power of OPM, which was the only way we were able to pay our contractor through the project instead of after (like the previous rehab). Our credit cards worked out great for funding the materials and my credit was strong enough to secure a loan to pay for the labor. We also took out 2 private loans from 2 separate entities to fund the project to completion. Our ability to secure funds and utilize OPM save this project for us, but it did cost us thousands extra to utilize those resources. It cost us a lot of interest, but this is a game of progress and the power of this business it’s the marathon, not the sprint.




Before & After Photos