HomeCompany Business Model

Company Business Model

OVERALL INVESTMENT APPROACH

Our overall investment strategy and specialty is to purchase distressed properties at a deep discount – usually 30% to 50% below market value, and renovate and sell those properties to retail homebuyers and landlords.

At Success Story, we pride ourselves on having a strong foundation of real estate knowledge and training. Our focus is on providing SOLUTIONS for our clients and finding VALUE for our investors by locating ugly, vacant homes that are eye sores and we put them back into use after renovation.

Our core business lies within our systems, education and knowledge of the real estate industry. We did not just buy a CD off the Internet and become a real estate investor overnight. We have spent thousands of dollars to learn how to be successful in this business and do it the right way the first time. Through our affiliation, we are connected with a national network of investors that provide continual support and weekly trainings on changes throughout our industry. This process has allowed us to circumvent many pitfalls most novice investors would make. Learning the hard way is not a phrase in our vocabulary, and we certainly would not ask anyone to invest with us if we weren’t confident enough to invest ourselves!

Our Business Strategy

  • We purchase distressed residential properties 30%-50% below current market value
  • We purchase, renovate and sell these properties to retail buyers and landlords

We Follow A Strict Due Diligence Process

We have a systematic and disciplined approach when purchasing investment properties, putting each potential investment through a strict due diligence process. This rigorous set of criteria includes, but is not limited to, the following:

  • Comparable property analysis and examination by an certified, independent appraiser
  • An economic study of the neighborhood, city planning and development
  • Demographics of area, marketability, and growth potential
  • Statistics on the crime rate
  • Public transportation and schools
  • Overall condition of the property, including heating and air, plumbing, electrical, roof and structural condition

WHAT’S OUR COMPETITIVE ADVANTAGE?

Our company can acquire great deals on properties because we have the ability to act quickly and can close with CASH on the seller’s timeline. This is why we can buy properties at such a discount. Obtaining loans through private money lenders gives us this competitive advantage over other investors who sometimes take weeks to go through the time consuming bank approval process in order to purchase properties. We have an aggressive TEAM approach, and a top-notch ability to expand our client base through our knowledge of deal structuring and advanced real estate techniques.

We also employ marketing strategies as soon as we purchase a home– giving us a fair advantage over a Realtor. Typically, most realtors don’t spend time or money on marketing or lead generation strategies. As a result, it can sometimes take months to attract potential buyers. Often times, we are able to find our own buyers allowing us to secure a strong sales price and save on sales commissions. Our renovation process is also down to a science with handpicked and proven construction crews who know we are not retail clients. We pay wholesale prices to all contractors and typically get bulk discounts on all materials.

Advantages to Working With Us

Investing with us also provides a win-win for the homeowner as well. With your cash funding, we can offer homeowners something that very few buyers can. We are helping sellers by purchasing their homes in their timeline - in as little as 10-14 days. Knowing that we’re going to renovate the home and we are buying in as-is condition is a very important factor to sellers who live in older, outdated homes, or those needing repairs. These sellers will also not be required to pay any attorney fees, closing costs, home warranties, inspection fees, realtor commissions, etc. We are not the perfect fit for everyone; but for the seller with the right motivation, these features are a necessity.

SUCCESS STORY VS. TRADITIONAL BUYER

Here are just a few benefits sellers have of working with Success Story to sell a home:

Most homeowners have no idea what options are available to them beyond listing a house with a Realtor or trying to sell the house on their own and just hoping for the best. We provide a unique alternative to listing their house on their own or with a Realtor.

When we work directly with a home seller, what we provide can not only make for a smooth transaction, but it can also add up to thousands upon thousands of dollars in savings as compared to selling a home through traditional means. Our “out of the box” creative approach to real estate investing is a cut above the rest.

How Do We Compare to a Traditional Buyer?

Traditional Buyer SUCCESS STORY
Method of Payment Bank Financing CASH
Repairs 1-8% of Homes Value None (Sold AS-IS)
Closing Timeframe 45+ Days 10-14 Days
Commissions 6% of Sale Price None
Seller Paid Closing Costs 1-6% of the Purchase Price Zero
Appraisal Mandatory None
Length of Time on Market 150 Days on the Market (On Average) 0 Days

INVESTMENT BUYING CRITERIA

Our goal is to buy distressed homes in stable areas where there is still strong buying demand. Part of our grand vision is to improve the overall quality of living in both urban and suburban neighborhoods. In addition to improving overall quality of life, we are committed to increasing the value of real estate in our community. Our company builds value by rehabilitating properties that are in significant need of repairs. We are able to target distressed properties and breathe new life back into them by renovating and improving the condition of the property. By doing so, we are able to create beautiful homes and encourage home ownership.

Types of Properties We Target

The ability to identify a wise real estate investment is certainly a learned skill. We have been thoroughly trained and possess this skill - along with the intuition to spot these great investment opportunities in today’s market.

Not every opportunity is a “good deal”, and we have built our company on a stable foundation knowing our numbers. If the numbers don’t make sense to us it certainly won’t make sense to our investors. Our goal is to be in business for many years and brand a company that will be passed down to our children, which cannot be accomplished by taking uncalculated risks.

HOW DO WE BUY HOMES SO FAR BELOW MARKET VALUE?

At Success Story, we have created a marketing machine that produces a consistent flow of high quality leads. We are very different from our competitors because we don’t just put in offers on MLS properties - we take it to the next level. Our creative marketing strategies allow us to reach the homeowner directly, before the property even goes to a Realtor to be listed on the MLS; whereas, the purchase price would escalate.

These are some of the marketing strategies we use to locate great deals way below market value:

Internet Direct Mail Other Strategies
Twitter Probate Bandit Signs
Buyer Squeeze Pages Pre-Foreclosure Networking Events
Seller Squeeze Pages Back Tax Door Hangers
Primary Websites Free n Clear Other Wholesalers
Facebook Business Code Violations House Banners
Google Business Listings Divorce Bird Dogs
Google Ad Words Expired Listings A-Team Van
You Tube Non Owner Occupied Zbuyer

HOW WE SELL PROPERTIES QUICKLY

There are many methods we use to sell properties very quickly. We invest a lot of time and money into marketing to build a strong list of buyer clients for our homes. Despite what the media says, there are tons of buyers out there who are aware of the fact that numerous buying opportunities exist in today’s real estate market. The problem is: they just don’t know how to identify and analyze them to ensure they are actually getting a good value. That’s where we come in. We are constantly on the hunt for the next great buying opportunity, and use proven techniques to analyze investment properties.

Methods We Use to Sell Properties

Our ability to locate a great real estate deal covers all types of real estate investments. We are able to identify great buying opportunities for the following types of buyers:

  • Retail
  • Landlord
  • Rehabber

SUCCESS STORY CASE STUDIES

Below renovations took an average of 3-8 months to complete, with an private lender return of 12%.

1100 W. 3rd Street  
Purchase Price: $80,000
Repair Cost: $17,209
After Repair Value: (10 Month Hold Time) $125,000
Transaction / Holding Costs: $6,832
Sales Price: $130,000
Profit $25,959
2 Oak Circle  
Purchase Price: $95,000
Repair Cost: $21,300
After Repair Value : (4 Month Hold Time) $155,000
Transaction / Holding Costs: $4,277
Sales Price: $153,900
Profit $33,323
251 Anne Ave.  
Purchase Price: $39,000
Repair Cost: $36,314
After Repair Value : (11 Month Hold Time) $115,000
Transaction / Holding Costs: $5,512
Sales Price: $120,000
Profit $39,174