Real Estate Projects with Clear Day Capital

Clear Day Capital has always said that we create opportunities for real estate investors. Yet until a week ago we acted only as a hard money lender. Borrow money? OK, but make sure it's paid back in time because there are big penalties if you don't

Along Come the Projects

A week ago we did our first "project" with an experienced investors who purchases, fixes and resells single family homes in northern Utah. He gets:

• ALL OF THE CAPITAL he needs to purchase and repair the house- no money out of pocket
• LOWER INTEREST RATE to cover our cost of money
• MORE TIME to complete the project
• NO EXTENSION FEES if the project runs long
• FREE CONSULTING on the project- he especially needs curb appeal help

What's in it for Clear Day Capital? We get a piece of the project. Instead of points, we split the profit from the project. Why do we do it? We believe in the project and we believe that we will make more money. We take the time risk with the origination fee.

Since the First Project

Since last week we closed another three projects, similar to the first. One is a rehab, one is a refinance of a completed project, and the last is our first commercial project.

Do You Have a Project that Needs Financing?

If you do, call us at 801.747.7267 and we can talk about a traditional loan or about doing a project together. Either way, we enjoy creating opportunities for real estate investors.

1070 Doxey- Great Street, Lots of Room

1070 Doxey in Ogden, Utah is a typical, solid home for a family on a quiet residential street.

Like many Ogden homes it is a great investment property because the monthly rent covers a mortgage, taxes, interest, property management fee, repairs and vacancies.

It was gutted and refinished in December 2009.

Rental Information

Annual Rent $10,740

Annual Mortgage 7,195

Taxes 820

Insurance 450

Gross Cash Flow $ 2,275

Property Management 537

Repairs Allowance 537

Vacancy Factor- 5% 537

Net Cash Flow $664

Loan Information

Loan Amount $98,000

Property Value $118,000

LTV 82%

90 Days Waived- A Gift for a Year to Real Estate Investors

Did you read about the gift given to real estate investors by HUD & the FHA? Someone finally woke up and realized that artificially setting a 90-day waiting period to sell a house backed by government financing was slowing down the revitalization of inner-cities. I'm not sure why it took so long to figure this out, but I am glad they did. Funny thing, it is only slowing down rehabs for a year, then we'll be back to normal.

For one year we can buy and sell houses as quickly as we can and the buyers can receive FHA backed loans. If the house sells for up to 20% higher than it was purchased for, no special paperwork will be required. If it sells for more than 20% of the original purchase price, documentation showing improvements that justify the new selling price will be needed.

There aren't any details about the needed documentation, but keeping all receipts for goods and services that go into improving the property would be wise. Taking photographs and/or video wouldn't hurt for backup documentation.

Tell me what you think. Is this a good idea or a bad one? If it a good idea, why only for one year?