PROFIT BREAKDOWN
From $200k Credit to $250k+ Cash + 3 Free Homes
INVESTMENT
Credit funding:
$200,000
Buy 8 homes @ $30k:
$240,000
*Utilizing 0% interest lines or business credit
RETURN
Sell 5 homes @ $60k:
$300,000
Pay back credit:
–$200,000
Keep 3 homes equity:
$180,000+
Sell notes for cash:
$150,000+
TOTAL PROFIT: $250,000+ CASH + RESIDUALS
THE EXACT MATH
853
Acquisitions
8 homes × $30,000
= $240,000 total purchase
Disposition & Repayment
5 sold × $60,000
= $300,000 revenue
Credit repaid:
–$200,000
Net cash from sales:
+$100,000
Retained Portfolio Value
3 homes equity:
+$180,000+
Note proceeds:
+$150,000+
TOTAL RETURN:
$430,000+ (cash + assets)
*The figures above are illustrative representations based on our average target market metrics. Actual acquisitions costs, ARV (After Repair Value), and timelines will fluctuate by property and specific market conditions.
HOW WE MITIGATE RISK
Real estate investing always carries risk. We structure the 8-5-3 model specifically to insulate partners and investors from common market downfalls.
| Risk Factor | Our Mitigation Solution |
|---|---|
| Market drops |
We buy at 30–50% below market value. This massive upfront discount creates a built-in equity buffer that protects the principal even if the housing market temporarily dips.
|
| Credit interest accrues |
We exclusively aim to use funding mechanisms that offer a 0% interest introductory window (typically 12–18 months). The 5 disposition homes are listed and sold well within this grace period.
|
| Homes don't sell quickly |
We maintain operational cash reserves and institutional bridge lender relationships. If a flip takes longer than expected, we have backend capital ready to pay off the partner's credit line on schedule.
|
| Tenants don't pay |
We rigorously screen tenants before signing rent-to-own agreements. In the event of a default, our property management team handles the transition while investor distributions are protected by corporate reserves.
|