Joe W. and the Cat House
Rehabbing “The Cat House”
Joe Wright was facing a rehabber’s worst fears. After buying a wholesale property from a flipper who had run out of money, his lender backed out of the deal.
The property had been re-appraised as part of the deal, coming in at +$20k less than the previous estimate causing his lender to re-think their involvement. Now he was the proud owner of a horribly dilapidated property, with no money to finish the project.
The Rehab Property
The 3 bedroom, 1.5 bath single family home in Pine Hill, NJ needed a lot of work, which meant Joe also needed a lot of money. The house was vacant for five years, during which time stray cats had taken up residence, destroying the interior and making the house totally unsanitary.
All of the metal in the house was so oxidized that even the refrigerator looked like a crumpled cardboard box. Everything was corroded. It all had to go. Total gut job. Worst of all, the deceased owner was found in a shed in the backyard where he had been living as the house fell into total disrepair.
A fellow lender heard about Joe’s troubles and recommended that he speak to Rehab Financial Group. Joe contacted us with his issues and we secured him a loan within nine days.
“RFG welcomed me with open arms and offered fantastic customer service.”
Seeing how the previous inspector had drastically decreased the appraisal, and suspecting that there may be a discrepancy, Rehab Financial Group brought their own appraiser in, who appraised the property $20k higher than than it had been previously.
Their quick response and “outside-of-the-box” thinking meant that Joe was able to jump right in to rehabbing his property, with minimal time and money lost. The day after the loan closed, he had dumpsters at the property, ready to begin demolition.
After RFG approved the plan and timeline for the project, Joe gutted and sanitized the entire property.
Joe bought the property for $30,000 and invested around $44,000 in the rehab. He hopes to sell the rehabbed property for around $124,000-$129,000, for a potential profit of $55,000.