Chris Dennis

Campbell, CA (USA)
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Maddock Properties, LLC

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Location: Campbell
Industry: Real Estate
Year Founded: 2008
Number Employees: 1-10 people
Description: My company was started in 2008 with one other funding partner. We buy properties in Pittsburgh, PA at wholesale prices and resell them with owner financing for twice our price and 12% on the balance, creating secured commercial profitable notes (the notes also include a Deed In Lieu). The notes are amortized over a five year period and they represent a relative interest rate (based on our out-of-pocket costs) of 30%+ annually. We have a wholesaler (in the business for 20 years), who could provide us at least 2 properties per month that meet our criteria (average price is $10K). The average cost of repairs needed is $5K-$7K (this is the responsibility of the new owners - we put no money into repairs, but want to create a good deal for the end user). We work with an attorney in PA who draws up the commercial mortgage paperwork for our property buyers. We have a track record of four properties already (which we have bought and resold with similar terms). We have a online database of investor/landlords looking to purchase with financing. Our goal is to find a funding partner who will put up $460,000 over the next four years, allowing us to purchase and resell 120 properties (by reinvesting the returns) over the next 5 years. After year 5, we will begin paying back the funding partner all of the principal and half of the profits, which should total $1.4M by year 10. As a rule, we only purchase a property when we have a buyer, so our worst case scenario would still be proportionately as profitable (less invested, with less gain). The collateral will be the notes themselves, which are collateralized by a first position lien on each of the properties, making this investment as secure as possible to the funding partner. The LTV should be less than 50% on each property as we acquire them for 25-50% of market value. The return to the funding partner will be 50% of our profit. Funds from the line of credit will be used for costs relating to the acquistion of the properties only (purchase price, closing costs, attorney/title fees, etc.), not administrative costs. Please contact us if you are interested in tripling your money over the next 10 years using a proven business model secured by real estate.