Derek Peruo

PropShop Homes, LLC in Menomonee Falls, WI

Derek Peruo with Sara Peruo

A local wholesaler brought us this deal in May 2020. The purchase price, with the wholesaler's fee, was 20% under market rate. Tenants were already in place and the cap rate was very attractive. Our site visit showed no immediate repairs. We put together a presentation for our lenders as soon as we got the property under contract. The presentation outlined the local market, the condition of the property, our experience as investors, as well as our exit strategies for the deal. A local hard money lender offered us a short-term loan that covered 90% of the purchase price. Our cash-on-cash return was just over 29%. What made this deal unique was the challenge of probate. The seller's wife recently died and he needed help with the probate process. The wholesaler and I recommended a lawyer in our network known for getting probates done quickly. It took the seller about 12 weeks to finish

Rental Details

Property City:

Milwaukee

Property State:

WI

Purchase Price:

$60,000

* These examples depicting income or earnings are NOT to be interpreted as common, typical, expected, or normal for an average student. Although we have numerous documented successful deals from our coaching students, we cannot track all of our students’ results, and therefore cannot provide a typical result. You should assume that the average person makes little to no money or could lose money as there is work and risk associated with investing in real estate. The students depicted have participated in advanced FortuneBuilders’ training and coaching. The participants shown are not paid for their stories; however, some of the students depicted may also be a FortuneBuilders' coach, and our coaches are compensated for their services. We believe in full transparency, so please read our Earnings and Income Disclaimers and Terms of Use

Case Study

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

The Mastery program gave us the tools and the confidence we needed to close this deal. The Mastery program taught us how to analyze our rental market to find attractive deals. We learned about hard money lenders, how they work, and why they are a vital tool in our real estate investing business. We learned about contracts and what to look for in the purchase and sale agreement. We also learned about probate and how to set ourselves up for success in a probate deal. We used the Deal Analyzer to estimate our costs and potential profits from the deal. We also used the Rental Closing Checklist so we didn't miss anything after taking ownership of the property. We would have never closed this deal without the guidance of the Mastery coaching program!