Alejandro Tomadin

RE Home Solutions LLC in Hollywood, FL

Alejandro Tomadin with Carmen Penaloza

The purchase and rehab of this property were all funded with Private Money Lenders. The initial plan was to rehab it lightly paint inside and outside, clean up landscaping around the property, add tile in common areas. Additionally adding a bedroom so that there would be enough to rent to a section to a tenant producing good cash flow. We had already locked a refi loan with 80% LTV at 6.5% fixed for 30 years when the whole secondary market collapsed 1 day before closing. With a $2,440 rent we should have positive cash flowed close to $900/month. Once the secondary market lenders came out of their caves, they were lending at 65-70% LTV and appraisers using very conservative property values that made it impossible to refi the property, so Instead we had to find a buyer to pay all of our PML's and the accumulated interest. We had 7 months of rental income which helped us have a profit.