Fast Funding – Low Risk – Fix and Flip
GMA Factor’s goal is to provide alternative funding for entrepreneurs who do not qualify for traditional bank loans. Our method helps improve financing positions and credit worthiness for them.
12 Step Low Risk Fast Funding Fix and Flip Program
Step 1- You identify a property for sale significantly discounted from market value.
Step 2- You fill out our excel spreadsheet which identifies all costs and property details.
Step 3- You send that completed spreadsheet to us and schedule a call to review the information with us.
Step 4- We make an offer to purchase the property as is, for cash, subject only to acceptable title and 10 day inspection. The offer will include a proof of funds letter.
Step 5- Once an offer is accepted we will come and view the property, the rehab budget and your team.
Step 6- We will purchase the property and you will receive a lease with an option to buy the property at an agreed upon price based upon the spreadsheet, and at the time of sale all proceeds above the price are your profit.
Step 7- We will pay for all of the materials for the rehab of the property. We will inspect the rehab progress throughout the process.
Step 8- You rehab and prepare the property for sale
Step 9- Our entity sells the property “as is where is” with your realtor.
Step 10- You sell the property and we receive our capital invested plus 13%, you keep everything remaining from the sale.
Step 11- If after 6 months from the date of purchase the property is not sold you have two options:
A) You can either begin to pay rent at a rate of 20% per annum (1.67% of the advance amount per month) or,
B) Walk away from the property with no penalty and we discuss what went wrong and look at doing another deal… We are now responsible for the property.
Step 12- Repeat steps
We buy a property on your behalf for $75,000. We advance you $25,000 for materials, closing costs, legal, inspection, insurance and taxes. Our total investment is $100,000.
Upon the sale of the property, we will receive $113,000 ($100,000 x 1.13). You would receive everything above that.
If the property sold for $150,000 net closing, you would profit $37,000. If the property sold for $120,000 net closing, you would only receive $7,000. It is critical in projecting a realistic sale price post rehab.