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EquityIQ™ for:

EquityIQ for Banks

With our unique Equity IQ™ program, Value-builders® helps banks sell Real Estate Owned (REO) properties for more money, in less time, and with no additional risk. We complete an extensive valuation process to determine the current value of the home (reserve price), as well as the future value if certain improvements are made. These improvements can be as simple as general clean up, paint and carpet, up to re-model work, including new kitchens, baths, room additions, etc. Value-builders® then completes, and pays, for all improvements. Once improvements are completed, Value-builders® homes are ‘staged’ with high quality furniture and artwork. Statistics prove staged homes sell twice as fast and for higher sales prices than vacant homes. When the property closes, we split the net profit with the bank between the initial valuation and the sales price (see example at right). Value-builders® assumes 100% of the risk. If the property sells for the reserve price or below, we make zero, and lose our remodel expense. Again, there is zero risk taken by the owner (details are in our contract).

Value-builders® offers banks an alternative to losing money on bank-owned properties, lengthy listing periods, and poorly maintained houses. We partner with your real estate agent to help minimize losses, and in many cases break-even or better on your bank-owned properties.

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EquityIQ™ Example :

Assume a bank-owned property is in poor condition, requiring new paint, carpet, and a new kitchen. The note on the property is currently $200,000, but in its current condition the home is worth only $180,000 at best, which becomes the reserve price. Value-builders™ determines it will cost $15,000 to do the work necessary to get an increased sales price. We determine the house will be worth $250,000 once the work is complete. Assume we take a lower offer and the house sells for $240,000.

Here is how it works:

Sales price:
$240,000
Minus: reserve price
$180,000
Gross Profit
$60,000
Minus: re-model expense (paid at closing)
$15,000
Net profit:
$45,000
Bank share (50%): $22,500

In this scenario, the bank effectively receives $202,500 for the property (reserve price + bank share), paying off the note and covering some expenses.
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