Mike Hasemann
Manteno, IL (USA)
Role(s):
Founder/Owner/Principal
Hasemann Properties Inc
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Startup
Location:
Manteno
Industry:
Real Estate
Year Founded:
2008
Number Employees:
1-10 people
Description:
I buy and rehab houses. Then refinance into commercial loans to hold as rentals. My business model is:
Retail value of houses: 100-130k
Purchase plus rehab costs: 45k-60k
Houses must cash flow $250 a month or more after refinancing
and pulling all money out.
I am currently using a relative's money to buy houses for cash and, after rehab and sticking the renter in the home, I refi into commercial loan.
I also use my own credit (735 middle score) to buy home, fix, rent and refi.
Am now looking for another individual looking to provide private money so I can keep 3 or 4 deals going at once. Recent purchase was for a house that I bought for 45k and the bank appraised at 115k BEFORE repairs. Needs paint and carpet and its ready to rent. Good schools too.
The terms: 3 points plus 9% interest only payments. I should be able to flip the money 3 or 4 times a year. At 70k, that would be $2,100 x 3 in pts ($6,300) plus 9% interest per month x 12 ($6,300) for a total of $12,600 per year return (18%). Add 2,100 to that if I flip it 4 times. Money is secured by a first mortgage on the houses.
If you'd prefer a straight interest rate of 15% per year, I would do that too.