Jordan Sherrod
Austin, TX (USA)
Role(s):
S&J Investment Builders
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Startup
Location:
Austin
Industry:
Construction
Year Founded:
2005
Number Employees:
INVALID
Description:
Custom Home for Investment -- 90% - 100% ROI
We build custom homes for investors to sell at a 90% - 100% return on investment.
How it works.
To obtain a construction loan builders have to do two things put down 10% and loose the cost of the home out of their credit. Since builders can build many houses at once it doesn't make since to front the loan. The bank won't let builders build more than a few houses on their own credit, so they look for investors to front the loan. This can be very lucrative for investors yielding typically 100% return on their investment. For example (this is a deal that we just closed with an investor):
The market value of the home is $748,000
The construction loan is $648,000
Investor is refunded $12,000
The down payment is 10% to the investor ($64