Fix ‘n Flip Concept
BUYING TURNAROUND PROPERTIES DIRECTLY FROM THE BANK, RENOVATING AND FLIPPING THEM WITHIN 6 MONTHS. THIS IS A COMPLETELY MANAGED PROGRAMME.
STRUCTURE
Global Prop Investor Ltd has created a strategic relationship with a very experienced developer associate in Sarasota Florida who specialises in investment turnaround properties on the West coast of Florida. The area he covers is from Sarasota south to Fort Myers, a very popular area for Americans, both working people and retirees. Tampa Bay being one of the major cities in Florida where big investment funds have recently made huge investments in bank repossessed properties, which speaks for the potential of this area.
He has over 12 years experience in such projects. He owned his own construction company in New Hampshire for 16 years that equips him well in understanding exactly what has to be done to a property and what it will take. Plus, over the last 12 years of operating his own real estate brokerage specialising in this type of transaction and selling over 2,000 properties including hundreds of fix and flip properties, he is able to define accurately what it will sell for when renovated. He undertakes the renovations with his own staff and sub contractors, overseeing the projects personally.
He works with several groups of US and overseas repeat investors and we have been lucky enough to be able to enter into a relationship with him and bring a unique opportunity for South African investors to buy directly from the banks and make a substantial profit selling them on once refurbished, usually within 6 months.
Global Prop Investors Ltd facilitates the entire procedure and ensures the investor has the best choice of turnaround properties from those that become available.
PROCESS
The Investor enters into an agreement with Global Prop Investor Ltd (GPI)
GPI introduces the Investor to a preferred US bank of substance which will open an account in the Investors name personally or in the name of a Limited Liability company if that is vehicle the investor chooses. Their US accounting adviser will explain merits of an LLC.
GPI will introduce the investor to a US accountant who will advise on all tax matters, register the investor personally with the Internal Revenue Service (IRS) and submit all necessary tax returns or create, register and manage a suitable LLC and deal with all tax returns for the entity.
GPI will introduce the investor to the leading real estate Attorney firm in Sarasota Florida, who will act as the “Closing Attorney” for your acquisitions, ensuring transfers go though efficiently. He will also hold your funds in his Escrow (trust) account. Draw-downs for payments are strictly subject to your specific written instructions.
The investor transfers the agreed estimated funds necessary to cover all costs for a future purchase to the US bank.
From there the funds are transferred to the Closing Attorney’s Escrow account pending a closing on a selected property. The Closing Attorney must receive the funds from a US bank.
GPI will submit to the investor selected properties on offer by the developer which he has gained access to, primarily from banks. The submission will contain all necessary information to make an informed decision including the purchase price, refurbishment schedule and cost, all on-costs and the projected sales value. These properties are under intense pressure from other developers and investors so it is vital the investor makes a decision immediately and instructs the Closing Attorney to proceed with the purchase and to draw down the necessary funds for the purchase and associated costs within 48 hours. Hence the necessity to have the funds readily available in the Sarasota Closing Attorney’s Escrow account.
The pre-agreed refurbishment and associated costs will be drawn down in two 50% tranches, at the commencement of the refurbishment programme shortly after acquisition and at a pre-agreed stage in the programme. Once the purchase has closed, the developer has complete autonomy with regard to day to day decisions on the necessary works which can change as the work evolves. There is an agreed 5% tolerance allowed in the refurbishment budget. Any further over runs must be agreed by the investor.
Time is of the essence with the refurbishment programme. Once the refurbishment is completed and signed off by an independent professional, the property can be put on the market for sale.
Click to view example properties