DAVID SIMMONS

Folsom, CA (USA)
Role(s):
Founder/Owner/Principal

peak financial group llc

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Location: Folsom
Industry: Real Estate
Year Founded: 2005
Number Employees: 1-10 people
Business Stage: Growth (profitable)
Entity Type: Limited Liability Company
Description: We are a real estate company that is extremely aggressive in the foreclosure market. We also work probates in twelve different counties . We offer very profitable deals to our investors . I believe we have more velocity in our Northern California area than any other company . We have a very good marketing system with direct mail and social media . We are getting more deals than we can handle currently and we want partners to help . We focus on deals with high equity and safe exits. Bay Area Fix and Flip Deals Peak Financial Group, LLC Target Profit Purchase Expected Fix-Up Total Investment ARV After Closing Costs Return $200,000 $40,000 $240,000 $330,000 $60,000 25.00% $300,000 $60,000 $360,000 $495,000 $90,000 25.00% $400,000 $80,000 $480,000 $660,000 $120,000 25.00% $500,000 $100,000 $600,000 $825,000 $150,000 25.00% The Expected Fix-Up is a guideline that we use to evaluate the risk in a project associated with the repairs. For example, while a property with an ARV of $495,000 might be purchased at $275,000, if it needs $85,000 in repairs it has a greater risk of the repair estimate being wrong and over-run costs eating the profits. Secondly, we evaluate risk at ARV. While we target 25% return at a market value or expected sales price, we will always want to know the 14 day sale price so we understand our downside. If that price is too far from the expected sales price we might pass on the deal or need to offer less. Finally, the return target is based on the other deals we are doing with our other sources. We consistantly earn within 3-4% of our target return and we turn over our money at least three times a year. Therefore, all of the deals we are doing essentially compete for investment funds. Because we have a history of earning these kinds of returns, we think long and hard before doing a deal with a lower return or higher risk. However, we will act quickly on any deal that meets our criteria and has an average amount of perceived risk.