HOW IT WORKS
A single family home is selected that can be renovated and resold for a profit.
The purchase price and renovation cost must be 60% of the market value.
The market value is determined by most recent sales in the area.
Most recent sales in the area must be 6 block radius, within the last 6 months. Same style house, min bedrooms, min baths, min square footage. (except where can be added to increase market value)
The extent of the renovations must be the same standard or more than the quality of the house sold on the market used as a recent sale in addition to having our independent stamp.
The renovation cost is out sourced to 3 different contractors that must be licensed, insured & bonded.
Contractors receive 3 draws according to work schedule to complete renovations.
Average time frame to complete renovations is 90 days.
House is listed on the market to be sold after 90 days with certificate of occupancy.
House is refinanced after 12 month returning all investments along with rate of return.
RATIONALE FOR INVESTMENT STRATEGY
Mioym Equities was established on the premise that investment strategies that preserve principal and generate strong returns and current cash flow are available to investors in selected, under-served niche markets. Mioym Equities has identified the mid-range and high-end homes in major urban markets in New York as such an investment opportunity and provides investors with the following:
HIGH CURRENT INCOME
Allowing investors to earn attractive returns on investments between 10 - 20%
The overwhelming majority of the portfolio is comprised of properties with loans secured by a first lien on a house. Investors typically provide 20%-25% of the capital needed to buy & renovate the house, which results in no more than 60% of the after repair market value. Additionally, equity is often created at the time of purchase by buying houses at prices below retail value. Further enhancement of the value of the collateral is through cost effective renovations.
LOW INTEREST RATE RISK
Investments have short maturities as most projects last between 9 and 12 months, which does not put principal at risk in a rising interest rate environment.
Due to the short-term nature of renovation loans, the portfolio turns over approximately once per year.
Returns from investing in bridge loans are unlikely to be correlated with returns from the stock market or other traditional asset classes.e your paragraph here.