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EquityIQ™ for InvestorsMany investors have the desire to get into the fix-and-flip business on a part-time basis, but lack the experience, time, and especially the funding required to purchase and remodel properties. Others do a high volume of fix-and-flips, and would like to do even more, but run out of resources. Some are great at finding properties, but do not enjoy the fix-up process. And finally, some have existing properties they would like to sell for more, but do not want to invest any money in remodeling, even though they realize they could sell for much more fixed up.
Value-builders™ offers a solution that makes fix-and-flips more affordable, less time intensive, and much lower risk for all these types of investors.
With our unique Equity IQ™ program, as an investor, all you need to do is bring us the property. Value-builders™ then designs, plans, and completes a remodel. Value-builders™ pays all the costs of the remodel. We then stage the property with high quality furniture and artwork. When you sell the remodeled property, we split the net profit with you. You only owe for the remodel costs if the house sells for a pre-determined amount or higher, so there is no risk, and there are no surprises.
Six simple steps to Equity IQ™ success
- If you are new to fix-and-flips, find a prospective fix-and-flip property through a real estate broker, banker, friend, etc. If you already own a property, skip to step 2.
- Before closing, contact Value-builders™, and give us the property address. We will present an easy-to-understand, no obligation estimate detailing what the house is worth in as-is condition (reserve price), remodel cost and timeline for completion, and what the house is worth once improvements are made. If terms are agreeable, Value-builders™ delivers our agreement, which specifically covers all the details.
- Once you close on the property and sign our agreement, we begin work. Our improvements can be as basic as carpet and paint, all the way up to complete remodels, whatever we deem necessary to attract the maximum sales price. Value-builders™ pays for all the work.
- When the remodel is complete, we stage the property with high-quality furniture and artwork at no cost.
- You list the property at the new sales price.
- When the property sells, Value-builders™ splits the net profit with you.
Why choose Equity IQ™ when as an investor I can do it myself and keep all the profits?
In many cases, investors can make as much or more profit by choosing Equity IQ™ than doing the job themselves, and at minimum get a higher return on investment. Here’s why:
- Value-builders® pays much less than any individual can for our materials and work, often as much as 50% less. We do not mark up our work, so the savings are passed through to you.
- Value-builders™ completes our remodels in an average of 4 to 6 weeks, more than twice as fast as most part-time fix and flip investors. Longer remodel times mean higher carrying costs.
- Value-builders® stages all properties with furniture and artwork. Staged homes on average sell twice as fast and for 5% higher sales prices than vacant homes.
- Value-builders® has years of experience, and we have learned through trial and error what features sell homes. Our remodels consistently sell for premium prices because we do not cut corners. Samples of our work are available on this website.
- Since the investor only has to come up with the down payment and not the remodel costs, they can afford higher priced properties, which generally have higher profit margins.
- Because there is no obligation, we encourage you to ask for an estimate anytime you are considering a fix-and-flip property.
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Example of EquityIQ™:
Assume you find a property that looks promising. The home is in poor
condition, requiring new paint, carpet, and a new kitchen. Value-builders™
determines the home is worth $180,000 as-is. This becomes the
reserve price. (It is important to note, Value-builders™
does not need to know what you are paying for the property. If you
negotiate a sales price lower than our reserve price,
it builds instant equity for you) Value-builders™ determines
it will cost $15,000 to remodel the house. We determine the house
will be worth $250,000 once the work is complete. The house goes under
contract and 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 |
| Your share (50%): |
$22,500* |
* This is your share of the profit before sales commissions and closing
costs. Value-builders™ offers a commission credit on the remodel
expense plus Value-builders™ share of the profit for the agreed
upon commission percentage. Please contact us for detailed examples. |
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