Meet Grand Diamond LLC, relatively new real estate company that engages in buy and hold as well as fix and flip deals.
They came to us last year to see if we could help them fund a lucrative real estate project.
Grand Diamond’s founder Adrian Culton, together with his 2 partners, found a great fixer upper property for sale through one of their contacts. The property’s purchase price was $218,000. After doing their research, Adrian and his team determined that it would cost $31,000 to rehab the property, and after looking at real estate comparables in the area, they estimated that it would sell for around $300,000 once the property was fixed and updated.
THE CHALLENGE: LACK OF FUNDS
Adrian and his partners didn’t have the funds to buy the property and most hard money lenders required a minimum down payment of 20%.
And while they did find a few lenders that offered 100% funding, those lenders required the investors to have a lot of experience in fixer uppers. To make matters even more challenging, lenders that did 100% financing asked for a 50% cut from the project’s profits.
This was a problem because not only did Adrian and his team lack the experience to qualify for funding, but they also weren’t keen on giving up 50% of their profits from the deal.
THE SOLUTION: OBTAIN A $100,000 LINE OF CREDIT
Grand Diamond LLC applied for funding through Synergistic Investments and got approved for a $100,000 line of credit.
Because of that, they were able to find a hard money lender and put down 20% of the purchase price ($43,600) using the credit line they obtained with us. And the best part? Since their credit line was for $100,000, they still had $56,400 left which was more than enough to cover the repair costs, closing costs and interest fees.
THE OUTCOME: GRAND DIAMOND LLC WAS ABLE TO COMPLETE THEIR FIRST REAL ESTATE DEAL!
Adrian and his partners successfully completed the project and sold it for a large profit — all without any out of pocket costs. And thanks to the credit line from Synergistic Investments, they were able to fund 100% of the project, without any profit sharing.
Even more good news: since the credit lines that we provide are revolving, Grand Diamond LLC can obtain funds (again and again) for future real estate deals.
BONUS: INCREASE CREDIT LINE
Synergistic Investments also teaches clients how to increase their credit lines in the future. Grand Diamond LLC has successfully implemented our strategies, and at the time of writing this, they now have $450,000 in combined lines of credit at their disposal.
Are you looking for funding for you own business deals? Apply for funding now and we’ll get back to you within 1 business day.