10 min
Ep 214 - Our 48 Unit Refinance - The Numbers Freedom Through Passive Income
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- Investing
Everyone who's been listening to our podcast knows that we've always talked about the 48-unit horror story. This is our first kind of full cycle deal where we bought it, rehabbed it, stabilized it, and then refinanced it. It turned out better than we actually anticipated. So we are going to share the behind the scene numbers so you can see and understand what it looks like.
Download your Free Private Lending Report here: https://www.freedomcapitalinvestments.com/lending
Download your Freedom # worksheet here: https://www.freedomcapitalinvestments.com/worksheet
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We want to be very transparent with you because most of you are passive investors, you want to invest with us and we wanted to share with you, our very first deal transparently start to finish and what it looked like. And for those of you who are active investors, now you get to kind of see what an apartment deal looks like, without actually having gone through what we did.
Here’s the summary of the passive income and the loan details. Our purchase price was $1,114,285.71. The acquisition and closing costs were $4,749.86. The renovation costs was $570,530.15. So the all-in cost is $1,689,565.72. Then the appraisal came in at $3.9 million and our loan came in at $2,730,000. After figuring out that piece out the appraisal and the loan amount, we calculated how much interest to pay our private money lenders on this deal which we came up with at $365,712.96. So now our new all-in after adding the private money lender interest to our investor interest and the refinance closing costs is $2,113,373.94. So we still have almost $1.2 million in equity, the rest was distributed to us. So it was a total profit of $1,786,626.06.
So our new loan is at a 20 year term, 30 year am at 4.67% interest, 3 years interest only and we have a step down prepayment penalty. The prepayment penalty does not mean that we can't sell it, we would be required to pay the prepayment penalty. There are different prepayment penalty options, usually based on a percentage of the financed amount, and our partner suggested we ask our lender for a step-down prepayment penalty, which they granted and I think it's like 55-44-33-22-11. And based upon this prepayment penalty, this investment has now become a long term hold for us. And the prepayment penalty applies even if we decide to refinance.
Join our groups on Facebook and LinkedIn.
https://www.facebook.com/groups/freedomthroughpassiveincome
https://www.linkedin.com/groups/14048250
www.FreedomCapitalInvestments.com
Invest Smart. Live Happy.
—————————————————————————
Connect with us here:
FB personal pages
https://www.facebook.com/Flipster
https://www.facebook.com/dani.lynn.robison
Linkedin personal pages
https://www.linkedin.com/in/fliprobison
https://www.linkedin.com/in/danilynnrobison
Instagram personal pages
https://www.instagram.com/fliprobison
https://www.instagram.com/danilynn23
TikTok personal pages
https://www.tiktok.com/@danilynnrobison
https://www.tiktok.com/@fliprobison
Everyone who's been listening to our podcast knows that we've always talked about the 48-unit horror story. This is our first kind of full cycle deal where we bought it, rehabbed it, stabilized it, and then refinanced it. It turned out better than we actually anticipated. So we are going to share the behind the scene numbers so you can see and understand what it looks like.
Download your Free Private Lending Report here: https://www.freedomcapitalinvestments.com/lending
Download your Freedom # worksheet here: https://www.freedomcapitalinvestments.com/worksheet
—————————————————————————
We want to be very transparent with you because most of you are passive investors, you want to invest with us and we wanted to share with you, our very first deal transparently start to finish and what it looked like. And for those of you who are active investors, now you get to kind of see what an apartment deal looks like, without actually having gone through what we did.
Here’s the summary of the passive income and the loan details. Our purchase price was $1,114,285.71. The acquisition and closing costs were $4,749.86. The renovation costs was $570,530.15. So the all-in cost is $1,689,565.72. Then the appraisal came in at $3.9 million and our loan came in at $2,730,000. After figuring out that piece out the appraisal and the loan amount, we calculated how much interest to pay our private money lenders on this deal which we came up with at $365,712.96. So now our new all-in after adding the private money lender interest to our investor interest and the refinance closing costs is $2,113,373.94. So we still have almost $1.2 million in equity, the rest was distributed to us. So it was a total profit of $1,786,626.06.
So our new loan is at a 20 year term, 30 year am at 4.67% interest, 3 years interest only and we have a step down prepayment penalty. The prepayment penalty does not mean that we can't sell it, we would be required to pay the prepayment penalty. There are different prepayment penalty options, usually based on a percentage of the financed amount, and our partner suggested we ask our lender for a step-down prepayment penalty, which they granted and I think it's like 55-44-33-22-11. And based upon this prepayment penalty, this investment has now become a long term hold for us. And the prepayment penalty applies even if we decide to refinance.
Join our groups on Facebook and LinkedIn.
https://www.facebook.com/groups/freedomthroughpassiveincome
https://www.linkedin.com/groups/14048250
www.FreedomCapitalInvestments.com
Invest Smart. Live Happy.
—————————————————————————
Connect with us here:
FB personal pages
https://www.facebook.com/Flipster
https://www.facebook.com/dani.lynn.robison
Linkedin personal pages
https://www.linkedin.com/in/fliprobison
https://www.linkedin.com/in/danilynnrobison
Instagram personal pages
https://www.instagram.com/fliprobison
https://www.instagram.com/danilynn23
TikTok personal pages
https://www.tiktok.com/@danilynnrobison
https://www.tiktok.com/@fliprobison
10 min