Rebuilding Neighborhoods One Loan at a Time
The “two-unit” condominium, has been a favorite amongst the residents of Medford, MA for years. Multifamily properties in this city have been increasingly more desirable both as a pure investment vehicle, and as an option for owner-occupant homebuyers seeking to subsidize their mortgage with rental income. Finding undervalued and desirable properties to rehab is big business for local borrowers. The two unit condo presented here was recently foreclosed on and purchased from a bank as an REO sale. Due to its condition, the property did not qualify for traditional bank financing. After carefully performing its due diligence, Conquest Capital Partners provided the borrowers the necessary financing to acquire and rehab this home to its former glory.
- Date of Acquisition: 6/6/2012
- Purchase Price: $212,500
- Renovation budget: $200,000
- Initial Estimated Resale Value: $600,000
- Date Properties Listed for Resale: 11/15/2012
- Unit 1 List Price: $319,000
- Sold: 1/14/2013
- Sale Price: $300,000
- Unit 2 List Price: $399,000
- Sold: 2/1/2013
- Sale Price: $360,000
The scope of work entailed a moderate rehab with the following key elements: an open floor plan, updated plumbing and electrical systems, contemporary kitchens and bathrooms, neutral colors, and plenty of lighting. By following Conquest’s systematic approach to rehabbing homes, the developer was able to complete the construction on time and within the range of budget of the original scope of work. It is very common to experience construction overages when rehabbing homes, as there will always be potential unknowns being uncovered after gutting a property. Conquest requires all borrowers to have sufficient reserves to handle these overages. In this case, the borrower had well over $50,000 in reserve capital to cover the roughly $10,000 in unexpected construction expenses.
Over the course o f 15 weeks, the developer turned this once uninhabitable two-family home into a beautiful new two unit condominium for the neighborhood. The property went into contract shortly after being listed on the market. At a sales price of $300,000 for the first unit and $360,000 for the second unit, it sold for over three times the price of what it was acquired for
To succeed in today’s highly competitive real estate investing business, properly identifying and evaluating market opportunities is key. Conquest Capital Partners has the experience and skills to consistently do this for its Clients and its Investors.
- 2 Condominium Units
- Unit 1: 2 Bedrooms/ 1 Bath
- 1,120 Square Feet
- Unit 2: 3 Bedrooms/ 2 Bath
- 2,025 Square Feet
- Complete Master Suite
- Stainless Steel Appliances
- Granite Countertops