Our investor is an experienced rehabber, and is works the northwest Indiana area. Over the past several years, he has used his own assets to fund the projects; however, he realized that the majority of his cash assets were tied up in real estate. While he was rich in real estate, his was cash poor and could not receive funding for additional projects. We took a close look at the properties in his portfolio and selected three that we could work with. Two were single family residences (SFR’s) and one a vacant two flat that was listed with a real estate for sale. He is what we, as a team, worked out. First, we took the two flat off the market, since it was not creating income it was not an attractive buy. Since this property was on the MLS, we could not sell, refinance, or obtain a HLOC (Homeowners Line of Credit) for a 90 day period. The investor turned his effort on this property to securing tenants. The two SFR’s were rehabbed and had increased in value, so both were refinanced to a low rate NOO (non-owner occupied) mortgages. This gave our investor cash on hand, and since it was from real estate transactions, no seasoning was required. Doing this the investor has been approved for our Residential Rehab Program, and is in the process of closing on a new project. The two flat is being rented, once that is complete, this income producing investment will be sold to another Real Estate Investor using seller financing.

Not only did this investor change his purchasing power, he and his family spent the holidays with relatives in a very warm climate.