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Fone PayIt Forward Community Care Facilities
Frequently Asked Questions... and Their Answers
Getting Information or becoming informed, starts with having it at your fingertips. Make time to get the answers to your questions without delaying. A "Help Resource Online" is offered as a method to connect you with answers to many questions about how to use a fix n flip mentality and financing with a Community House in mind. We will use an elderly care facility as an illustration. Please note, maximum per bed could be as much as $7,000 / month.
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How Can I Finance fix n flips ?
We have experienced helping our clients identify a 1-8 unit property that will fit their needs. Having a property in mind, we can then look at how financing your acquisition, while turning it into a higher performing asset, will be.
Utilize Financing To Do Repairs, increase values of the property as renovations are performed. Benefit by financing at each stage to acquire additional funds to have repairs to 80% completion. Once there, your money in to date will be less than the property AFTER REPAIRED VALUE.
Equity Building along the way in a scale of 12 months, should provide you with plenty of funds secured. WHILE YOU MAY CHOOSE AN OPTION TO NOT MAKE MONTHLY REQUIRED PAYMENTS from months 1 - 12, you benefit by obviously planning to then sell the property with a much higher property value within months 12 - 18 making your investment re-couped and a tidy profit BEFORE SALE.
We developed a way where if you turn some of your units into an ELDERLY CARE FACILITY, you build a cash rich business you can sell. Depending on how many units you manage as an elderly care facility, you can put a partition wall in a bedroom, making two beds to a room. $3,000 per Bed is easily a $20,000 per month INCOME. A large portion of your proceeds may come from just doing a simple fix n flip, however, with the property having a cash rich business in it - YOU CAN DOUBLE YOUR PROFITS with having a business that will be offered for sale AS YOUR PRIMARY TENANT. THEY LEASE THE PROPERTY FROM YOU at an above market rent... while you may sell that business also for $150,000 as well.
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Adopt a "Community Care Facility" as a tenant to your property for sale.
They make great tenants. Having also a manager who manages your elderly care facility, do not be surprised to learn they would be happy to buy the business from you. They operate and manage it - while making payments to you for the business - they also lease the premises from you.... at an above market rate. Example: $20,000 income per month yields a business for sale of $150,000 and a typical "mortgage payment" of $2,750 while lease payments could easily be set as $6,000 per month.
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How Does fix n flip Help Me?
Example: BUY THE PROPERTY UNDER MARKET as it needs repairs. $275,000.
Repairs Budget for Renovation $ 85,000 VALUE AFTER REPAIRED: $465,000
YOU HAVE BUILT IN EQUITY $105,000 You may wish to sell the property at this point for a tidy profit that was achieved in a two year (comfortable 18 - 24 months) window.
If you wish to see the benefit of what we are offering, we are looking at doubling that figure, while still performing in a two year window now having a profit of $295,000. Next look at what the buy and hold mentality can offer you if you have bought, fixed it up, produced a cash rich business where you sell it, you are just providing yourself with an anchoring tenant for years to come.
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ELDERLY CARE FACILITY is then
OFFERED FOR SALE while becoming your highest paying tenant.
We offer a safe harbor and try to provide a simple means to accomplish your property's goals. In today's modern society having a facility like, Our House,we try to provide you with a suggested timeline you would try to abide by. We also suggest you check with your individual advisor to go over your budget, plans, and timing to get cash flowing monthly as it does take a couple of months to get licensed up and receiving monies from the entities that pay for elderly care such as Medi Care and Medicaid.
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Cash Rich Business - Easy to Sell.
Having a business that provides $20,000 per month or $30,000 per month while you are not having high costs ELDERLY CARE FACILITIES become an attractive and yet somewhat gold standard in their respective market industries. One trend is to offer less cost of purchase price of the business in order to maintain a higher lease payment per month.
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How Does Selling an Elderly Care Actually Work?
Example: BUY THE PROPERTY UNDER MARKET as it needs repairs. $275,000.
Repairs Budget for Renovation $ 85,000 VALUE AFTER REPAIRED: $465,000
YOU HAVE BUILT IN EQUITY $105,000 You may wish to sell the property at this point for a tidy profit that was achieved in a two year (comfortable 18 - 24 months) window. If you BUILD and THEN SELL YOUR ELDERLY CARE BUSINESS while keeping them a tenant, IT LITERALLY doubles that figure, while still performing in a two year window now having a profit of $295,000.
Here is what we have accomplished if you have bought, fixed it up, produced a cash rich business... You now have a Elderly Care Facility with a $20,000 income. Selling that business for $120,000 while having the monthly lease payments they pay as rent is $6,000 / month yields $72,000 per year. Easily you can increase rents year over year $1,677 / month. Equity in the property may rise and fall , whereas a business for sale and leasing back the premises include higher yields. Now it is easy to see you are just providing yourself with an anchoring tenant for years to come. *** We also have websites and google analytic teams for site optimization, meta tags, web search registration and functions available for your elderly care facility that will be for sale - help your manager qualify to buy from you.***