When a house is more than a home
Online, September 22, 2009 (Newswire.com) - Jacksonville, Florida - September, 2009 - Even in this lackluster housing crisis and despite this troubled economic murkiness that we struggle with daily, one company has found a winning combination that has turned financial darkness into welcomed good news and profits for many people.
Using the surplus of bank owned properties, which create a low price entry point, the availability of ready, willing, and able skilled (unemployed) contractors, and a pool of investors eager for lucrative financial returns on their weakened single digit or, in some cases, negative annual returns, Totally Rehabbed Homes as division of White Collar Solutions, inc. (http://TotallyRehabbedHomes.com) has aligned all of these components and created a successful business strategy for the past eight months.
The first component and the main criteria in this business plan is to be able to offer a single family house for under $85,000. Their research has indicated that this price point, in the Jacksonville, Florida area, is perfect for the median income range and typical, average family. Furthermore, their analysis showed that such a family generally was paying more for renting an apartment than they would be for paying on a mortgage of $85,000 or less. When you add in any "first time home buyer" incentives, this created a perfect outlet of consumers.
There are three other components in this business plan. These houses are bought from the large pool of "bank owned assets" or better known as REO's. This, in many times, is "pennies on the dollar" or, in economic terms, a VERY low price entry point. As a result of the banks "deaf ears" and non-availability of conventional mortgages or loans, White Collar Solutions, inc. has turned to the private sector investors or better known as "hard money lenders". Loan packages are designed to cover both the purchase and costs for all rehabilitations on the properties. While it is true that these "hard money" loans carry double digit interest rates, these factors are calculated into the overall monetary equation.
A strict "no bickering" policy has been put in place in dealing with the numerous contractors highly necessary and instrumental in transforming these run down houses into like new, model homes. This has not only created a very happy group of workers but certainly helped to stimulate the local economy with the many, many trips and purchases at the supply houses. Typical home renovations include new windows, doors, painting inside and out, floor refinishing, new kitchens, heating and air, bathroom fixtures, lighting and fans, and major appliances.
The final piece to this strategy is to turn the finished product over to a real estate brokerage and price the house ten to twenty thousand dollars under similar competition and market the house as a home to get it sold. Clearly, this business plan is a winner all the way around. Abandoned houses are cleaned up and landscaped, usually inspiring others on the block to do the same, contractors and workers are actually working and bringing home a paycheck, and last but not least, deserving families are realizing the American Dream of owning their own home and moving into totally rehabbed homes.
Investors or anyone interested in any additional information about this successful business plan can contact George Eckenrode at george@TotallyRehabbedHomes.com or by phone at (904) 584.2098. There certainly are many ways that you can get involved !
Contact:
George Eckenrode
Phone: (904) 584.2098