FIX-IT, SELL-IT, PROF-IT
AS AN INVESTOR
Value-builders offers lower risk fix-and-flips with Equity IQ. Many 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 and 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.
An example of Equity IQ
Assume you find a 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:
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.
Because there is no obligation, we encourage you to ask for an estimate anytime you are considering a fix-and-flip property.
Why do Investors choose Value-builders?
- Experience: We have over 30 years’ experience in real estate investing, including appraisals, 2500+ sales, and hundreds of remodels. We know what touches sell homes, and only spend on items that will generate the best possible return.
- Proven track record: While there is always risk in investing in real estate, we have profited on over 98% of our investments, even in bad years
- Shared risk: Because we pay for all remodel expenses, we have a huge financial risk in each re-model we do. If we are wrong, Value-builders™ loses money. Our interests are aligned with the Investor.
- Staging: We stage properties with high-quality furniture. Staged properties sell for 17% more and 2.5 times faster than non-staged (International Association of Home Staging Professionals and StagedHomes.com*)
- Costs: Because of our industry experience and contacts, we complete most remodels for about half the cost and in about half the time as someone without experience. Our Investors therefore often make the same or better return sharing the profit with Value-builders™ than doing it themselves.
*Based upon a survey conducted by The International Association of Home Staging Professionals® and StagedHomes.com® of over 1,000 homes (62% Vacant, 38% occupied) across the Continental US and Canada prepared for sale by Accredited Staging Professionals (ASP®) in today's market.