Our profit is the difference between the price paid for the property and its re-sale price.  Our plan allows for the original property owner to buy back the property at a predetermine price.  Buy back price is set 25% higher than our purchase costs.  

Our hope is that the original owner will buy back the property within three months.  If the original property owner does not exercise his buy-back right within ninety days, the property is listed for sale and marketed through the Real-Estate Multiple Listing Service (MLS).  The original owner may continue efforts to buy back the property while it is simultaneously available for purchase by the general public.  However, the sale price to the general public will be at the market price.  This means PRS could earn substantially more than its original purchase price.  

For demonstrational purposes; a $100,000 property may be purchased by PRS for only $30,000.  If the original property owner does not buy it back for $37,500 within three months, the property will be offered to the public at $100,000.  Since our acquisition cost was only $30,000, PRS can afford to accept an offer far below market value for a fast sale.  Example: If that property sold for only 65% of market value, it would generate $65,000, which is more than double our original purchase price.

Property Redemption Services, LLC (PRS) can realistically estimate the amount which will be earned from the transaction before actually buying the property.  If for any reason the original owner fails or declines to buy back the property, its sold fast because it can be offered for sale at a price which is substantially below market value. This approach may be considered low risk because our target purchase price / purchase to value (PTV) is below 65%.  PRS’s goal is to realize a 15% to 50% return on each transaction.    

Although the purpose for our funds is to purchase real property, this is not a traditional long hold real estate investment or fix and flip. The reason is because very little rehab, if any, is necessary in order to re-sell the properties. This means our turn-around time is substantially quicker which enables our working capital to be re-invested in other properties faster.  To emphasize this point, earning 25% on the same money twice within a year is equivalent to earning an annual interest rate of 50%. If the earnings are rolled over, compounded every six months at an earnings rate of 25%, then $50,000 could turn into $298,025 in four years.

Please note the forgoing assumption is purely speculation and for demonstrative purposes only and may never become reality.

Property Redemption Services, LLC (PRS) can realistically estimate the amount which will be earned from the transaction before actually buying the property.  If for any reason the original owner fails or declines to buy back the property, its sold fast because it can be offered for sale at a price which is substantially below market value. This approach may be considered low risk because our target purchase price / purchase to value (PTV) is below 65%.  PRS’s goal is to realize a 15% to 50% return on each transaction.      Although the purpose for our funds is to purchase real property, this is not a traditional long hold real estate investment or fix and flip. The reason is because very little rehab, if any, is necessary in order to re-sell the properties. This means our turn-around time is substantially quicker which enables our working capital to be re-invested in other properties faster.  To emphasize this point, earning 25% on the same money twice within a year is equivalent to earning an annual interest rate of 50%. If the earnings are rolled over, compounded every six months at an earnings rate of 25%, then $50,000 could turn into $298,025 in four years. Please note the forgoing assumption is purely speculation and for demonstrative purposes only and may never become reality.

Calculating Profits

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