One of the aspects of a Sale with any rehab or a reposition project is to make sure that the property is priced to obtain the most return but not be priced out of the market. As with this Property, there was a solid Buyer (remember that the Buyer was vetted along with his loan thoroughly) that was excited and waiting for the Property.
The Buyer inspections were delayed until the rehab was complete but TENANTS were knocking on the door to rent the duplex in the rear of the Property. This was accomplished. As this was done the income offset some of the carrying costs during the rehab. Additionally, the Buyer had income from day one of his purchase. The property inspected cleanly.
The next step was the appraisal for the loan. Linda personally met the Appraiser at the property. She brought comps, a list of the Capital Improvements, copies of the leases and rent role. Also, she did not forget the STARBUCKS COFFEE. Many Brokers do not go the extra mile and often the Appraiser does not meet the contract price. Guess what? The property appraised for the Contract Price.
The investor has moved onto another rehab project immediately that Linda found. This was a win-win rehab project.
It is important that any investment have at least two exit plans and this is no exception. If the property did not sell the Investor had chosen to put a “traditional” loan on the Property and simply have a cash flowing investment to add to his Portfolio.