NEW REMODELLING PROJECTS (BLAN B)
Investment are made on Homes being bought on a One on One basis. Once a house is identified and investor/investors secured. Agreements are put in place as follows:
1. Investor (or Investors, percentage of share in the project) deposits money into a South African’s Attorney Interest Bearing Account (Investors Attorney of choice or Independent Attorney is appointed)
2. Once payment for the house is due, money is transferred to Attorneys Escrow/Trust account in USA to finalize transaction
3. An amount remains in the Escrow/Trust account abroad to pay for renovations and upgrades.
4. Remodelling expenses for renovations/remodelling and upgrades and will refunds on a proof of purchase basis.
5. Upon completion and selling the property. The attorney’s will receive the money on sale and calculates profit, split on a 50%/50% basis.
6. Investment will only be handled by Attorney’s in Trust Accounts or Escrow accounts in the USA. (No money will ever be handled by any individual on a personal basis)
7. Profits will be paid into South African attorney to be distributed.
8. Once completed, parties can decide to sell or rent the property. (After due diligence of the rental potential in the area)
Average Budget – Remodel and Sell (Budget will differ from house to house)
Purchase Amount: +- $ 120000
Buying Administration Cost: $3000 (+- 2, 5% Closing Cost)
Renovation Costs: $25000
Total Investment: $148000 (50% of cost to Investor – $74000 and 50% made Sherwood Investment Group)
Selling Price: $180000
Selling Administration Cost: $4500 (+- 2, 5% Agents etc.)
Profit: $ 32000 – $4500 (Selling Cost) = $ 27500
50%/50 Split = $13750 Profit on $148000 Investment = 9, 29% on +- 90 days Investment. (37, 16% Annual Return on Investment)
Average Budget – Remodel and Rent (Budget will differ from house to house)
Purchase Amount: +- $ 120000
Buying Administration Cost: $3000 (+- 2, 5% Closing Cost)
Renovation Costs: $25000
Total Investment: $148000 (Investor only invest 50% of amount, Join Venture)
Value after Remodeling $180000
Equity Gain after Remodeling: $ 32000 (Increase in Home Value)
IF RENTED OUT
Annual Rental Income = $19200 (+- $1600 per month)
Less Expenses: $ 4500 (5% Management Fee, Property Tax, Maintenance)
Annual Profit: $ 14700 at 50%/50% Split = $7350 (+- 9,9% Annual Return on Investment and minimum +- 2,5% Increase in Property Value = $4500
