Currently, BridgePoint Ventures has a team established to
acquire and renovate homes before leasing them to Section 8
(Government subsidised housing) tenants with payments guaranteed by
the office of Housing and Urban Development (HUD), an arm of the US
Government.
The team consists of accounting, property management, asset
management, General Contracting, and Real Estate professionals and
is currently focused on Cleveland, Ohio single family REO for
Section 8.
- Over the past 18 months, BridgePoint Ventures has managed the
acquisition of 47 homes in Cleveland
- Of those homes 97% are occupied and 21 have been resold at
profit to retail investors
- Average acquisition price has been $14,432
- Renovation is completed within 60 days or purchase, requiring
an average $18,885 to make it tenant-ready. Assets will typically
require most, if not all of the following:
- Plumbing & electrical systems replaced or repaired;
heating and cooling systems (including duct work, chimney and
exhaust) repaired or replaced; interior and exterior decoration and
upgrade including window reframing, repair of flooring, rebuild of
staircase, roof repairs; replacement of kitchen
appliances
- Renovation generally takes a maximum 3 weeks
- Nearly 100% of the time an approved tenant is ready to inspect
and move in upon completion of renovation
- The net return on investment generated by the rental of the
home ranges from 16 % to 23% annually
BridgePoint Ventures is one of the few organisations working
within the distressed property industry that acquires, renovates,
leases, manages and sells individual assets with its own in-house
team, without relying on any outside vendors.