A Real Estate Investment Story: Turning Dreams into Reality

Let me share an exciting opportunity with you, right in the vibrant heart of San Antonio, Texas. Imagine this: a charming single-family home in an up-and-coming neighborhood, just bursting with potential. It’s listed at $150,000, but with a little love, some upgrades, and a fresh coat of paint, its after-repair value (ARV) skyrockets to $220,000. Can you see the possibilities already?

The Opportunity

The current owner has their sights set on a new adventure. They’re ready to move on, but they’re still tied to a $100,000 mortgage. That’s where we come in with a creative solution: a subject-to deal. This means we take over their mortgage payments, giving them the freedom to move while securing the property with minimal upfront cash.

Let’s break it down:

• Purchase Price: $150,000
• Mortgage Balance to Take Over: $100,000
• Initial Costs (Closing, Repairs, etc.): Capped at 10% of the purchase price, or $15,000

By keeping the upfront costs low, we maximize the potential for profit while minimizing risk.

Why Private Lending?

Instead of navigating the slow and complex process of traditional lending, this deal calls for private lending. As a private lender, you become an essential part of the project’s success. Here’s the proposal:

• Loan Amount: $15,000
• Loan Terms: Five-year balloon term with a simple annual interest rate of 10%
• Payments: Interest-only payments during the term, with the principal returned in full at the end

This structure ensures steady returns for you while keeping the project moving quickly.

Addressing Concerns

You might wonder, “What about the second lien position?” That’s a fair question. Here’s the reassurance: instead of a traditional junior lien, you’re lending against the LLC that owns the property. This structure adds an extra layer of protection and simplifies the process, ensuring your investment is as secure as possible.

The Transformation

Fast forward six months. The property has been transformed into a beautiful, market-ready home. The upgrades and attention to detail attract buyers, and it sells for the estimated ARV of $220,000.

Here’s the math:

Once the property is sold, the first priority is to repay all debts. This includes your $15,000 loan, along with the interest payments you’ve earned.

Why San Antonio?

San Antonio’s real estate market has been gaining momentum. As of late 2024, the city’s median home prices are up 6% compared to last year (Zillow San Antonio Market Overview). Neighborhoods like this one are attracting first-time buyers and young families thanks to their affordability and proximity to downtown.

This deal capitalizes on these trends, making it an exciting and profitable opportunity for everyone involved.

The Bigger Picture

This isn’t just about one house or one profit—it’s about creating a community of investors who support each other in making real estate dreams a reality. Together, we can transform neighborhoods, help families find their perfect homes, and build wealth in a way that benefits everyone.

Final Thoughts

Private lending is more than an investment—it’s a partnership. It’s about taking part in a journey where everyone wins. From helping an owner move on to their next chapter to turning a house into a dream home, your contribution plays a crucial role in making it all happen.

So, what do you say? Are you ready to dive into this opportunity and become part of something truly rewarding? Let’s build something great, one investment at a time.