Future Plans
Our proposed plan is to create a balance of a long and short-term portfolio of business and real estate investments. The goal being to earn a maximum return on investment with capital appreciation from distress real estate restoration and short term cash flow from the existing internet operations. The principal of the corporation has a long history of both technology and real estate management. Their experience in real estate investment and turnaround has helped create this plan.
Initially, we intend to invest in our existing infrastructure to accommodate 100% expansion of our current client base to increase cash flow. Additionally, we intend to acquire foreclosed, distressed property, rehabilitate it and then resell it at current market value.
The following is an extreme example of a property acquired at no cost. The owner deeded the property to us instead of paying $15,000 to demolish it. We invested $75,000 into rehabilitations and updates. The property is now appraised at $160,000. We expect the property to sell in the $150,000 range. Clearly, this is a 100% return on the investment.
Another example of distress real estate is the following house in West Amherst, NY. The owner passed away 10 years ago with no heirs wishing to take the title to the home. Other houses in the neighborhood are selling for $150,000. We acquired the title from the public administrator at no cost. The home will have approximately $60,000 in repairs and another $20,000 in tax liens and legal fees paid. Our return on this property is estimated to be $60,000 after closing costs.
We will be using your loan to expand Bufflink’s holdings of internet properties. The extremely high appreciation and return on investment allows us to pay an unprecedented interest rate of 15%. This interest is justified because we don’t have to wait for traditional financing typically from mortgages, appraises required, closing fees, etc. The high rate of return from the sale of distress real estate acquired, rehabilitated and sold, will easily capitalize the costs.