Acquisition
LF has built relationships with REO departments at key financial institutions. Through this network, LF is presented with opportunities to purchase properties prior to public listing. The firm’s proven track record of paying cash for properties, and closing in a timely manner, creates a mutually beneficial relationship. This uniquely positions LF as a resource for financial institutions looking to move excess inventory and distressed properties.
Identifying the most attractive opportunities is a time-intensive process. The principals review and analyze acquisition opportunities to determine the current value of the properties by assessing location, zoning, home configuration, square footage, lot size, and comparable sales.
After extensive due diligence, the LF team determines the appropriate acquisition price for the property. The next step is to create a projected budget for materials and construction. LF enjoys economies of scale including bulk discounts on materials and labor, in order to keep costs to a minimum.
Next, the future value of the home is determined. This is the projected value once all upgrades and renovations are complete. In order to arrive at a future value, LF considers a quick sale price. This is the optimal price at which the property will sell within 90 days from the listing date.
Once the offer has been accepted, a comprehensive building inspection is performed by the LF inspection team, which fully details any potential problem areas and the associated costs to cure the problem before the property is purchased.