1. RELX does not make monthly payments back to you the investor. As the investor you
will receive a lump sum payment of 50% of the net profits at the closing on the sale of the
property after it has been rehabbed. You will receive copies of all real estate document
throughout the entire flip, process, including copies prior to the first closing on the
necessary home owners policy and associated fees. You will receive a copy of a
professional appraisal of the estimated value once the house is renovated prior to the first
closing. Typically, I will low ball a property that I know through research is undervalued
compared to other homes in the neighborhood. I will include, on that purchase
agreement, a written time frame of two (2) weeks to allow for contingencies to be
removed. Once the inspections have been completed on the home prior to purchase, I
will provide written estimates on all repairs that I will need to make. These costs are
determined during the two week period after I write an offer on a property. I always
obtain estimates of the material costs prior to close, as well as who I have hired for the
remodel jobs. I am thorough. You will receive an itemized list of labor estimates and
material costs that I have personally selected myself at Lowe s, Home Depot or Menard s.
The exact amount needed to rehab a house is determined prior to closing. All figures are
forwarded to you prior to closing.
2. All decisions with respect to the management of the project and the rehabilitation of a
residence will be made exclusively by Lori DeBartolo. There is no guarantee that these
decisions will always be correct.
3. As an investor, RELX offers the luxury of giving the investor the opportunity personally
converse with Lori DeBartolo during business hours of 8:00 a.m. and 6:00 p.m., Monday
thru Friday, Eastern Standard Time.
4. Settlement statements at the first closing and the resale closing, can be faxed to you. If
necessary a power of attorney can be prepared, if you are unable to attend the closings.
5. Certified funds are required to be provided to the closing title company no less than 24
hours prior to the initial closing on the property. The check is to be made payable to:
RealEstateListingXchange.com and include the name of the property and its address of
the investment on the certified funds.
6. RELX has retained an attorney to draw up the legal contract prior to the writing of an
offer on a particular property. This is to ensure you are the sole investor for a particular
property. You also have the right to determine what property you choose to invest in. I
can mail, fax, or e-mail information on a property I have previewed that I believe is worth
the investment of my time and your funds.
7. We are projecting an average return of 19% on your investment. I project that from the
first closing through the remodeling process, the relisting, and re-sale of the refurbished
property to take an average of one year. According to the contract you sign, we will
reimburse you the full amount of your investment within two years from closing the
property has not re-sold from the date of the first closing. RELX will still give, according
to contract, 50% of the net profits once the property does re-sell. That is the worse case
situation of a slow turn around time. The average time line is one year from beginning at
closing to the eventual sale.
8. The investor will be provided a written comprehensive breakdown of the costs of
rehabilitation.
9. Each prospective investor is urged to consult with his or her professional tax advisor with
respect to the tax consequences of an investment in this venture.
10. Each prospective investor is urged to consult with his or her attorney with respect to the
legal consequences of an investment in this venture.
11. Please contact Lori DeBartolo on any interest you may have in regards to investing in a
fixer upper property. The rehab costs are usually approximately $60,000.00. The norm to
refurbishing a distressed property is $20,000.00 or less. Both amounts must be submitted
with certified funds within 24 hours prior to closing on the property. The earnest money
amount in general for a property is $1000.00, and is credited at closing. All the
contingencies, the safety net created to have all my questions and concerns answered will
take place during the first two weeks I make an offer, then removed. If I am not satisfied
with the condition or estimates, I withdraw the offer, and the earnest money is returned to
you the investor.
Click here: For investment information, a breakdown of costs and percentages, and a printable copy of the Acknowledgment Form.
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