Eric Teves
Antelope, CA (USA)
Role(s):
C-Level Executive (CEO, CFO, etc.)
New West Investments, LLC
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Startup
Location:
Antelope
Industry:
Real Estate
Year Founded:
2007
Number Employees:
1-10 people
Business Stage:
Growth (not profitable)
Entity Type:
Limited Liability Company
Description:
New West Investments, LLC was organized in November 2007 as a real estate investment company. In just two years, we have purchased a total of five homes, valued at $410,000 for $262,000, with $175,000 financing and cash. We acquired four properties in Detroit, Michigan, where we use a professional management company to handle the day to day administration of the properties, from qualifying tenants, servicing general repairs and maintenance, and contracting with local contractors. We also acquire one property in Sacramento, CA. All services for the home is through my company New West Investments, LLC.
The current Real Estate market has become saturated with homes available for sale through short sales, home auctions, and direct purchases from lenders. This had led to unprecedented opportunities in the residential real estate market to acquire properties at significantly less than market value. The foreclosure market has led to a high level of real estate inventories on banks and other lending institutions books, that are available for discount acquisition, renovation, and re-use to an end home buyer or lessee. We evaluate properties throughout the United States, using online resources through the internet. Our primary focus, however, will be California, Nevada, Arizona, Michigan, Florida and Georgia. The key is to acquire these properties for cash to maximize cash flow, avoid timely lender qualifications, and limiting ownership in the property. This will increase the profit opportunities upon sale and leveraging properties for fair market value or as market values increase.
Most properties are in need of renovations and general repairs from interior and exterior painting, carpet replacement, hardware upgrades, appliance upgrades, roof replacement and repair, sheet rock and dry walling repair, and general lawn care and landscaping. Every property will be budgeted at renovation costs of $10,000 to $25,000. We analyze each property through contracted inspectors to minimize cost and evaluate needed repairs.
Most repairs will make use of local contractors and handi-persons, and supplies and materials will be purchased from local businesses such as Home Depot, and Lowe’s Home Improvement Warehouse, among others. New West Investments, LLC will create jobs, and increase demand for supplies and materials from local businesses. Other businesses of use will be waste and trash removal, home cleaners, and landscapers.
Our goal is to acquire properties, renovate the properties for $10,000 to $25,000, rent the properties at $600 to $1200, attain cash flow of $400 to $900 per month, and rental profits of $20,000 to $35,000 per year.
We are seeking funding in the amount of $150,000 to $275,000 in equity or debt financing. These funds will cover initial acquisition costs of properties, cost of renovations and repairs, and meeting continuous administrative costs.