Frequently Asked Questions
Q: What are the costs of buying from The Machine?
A: We've worked hard to ensure that each piece of the machine works as efficiently as possible and earns income by generating as much, if not more, value than other service providers in the marketplace. More details on this can be seen in the video tutorials on our YouTube Channel.
Q: On the deal you sent out, only a 10% down payment is needed. Is that typical?
A: If you utilize financing from The Machine, yes! All our opportunities will be pre-approved by our lender, regardless of which clients purchases the deal. You can borrow 90% of the purchase price and 100% of the rehab cost, as long as the total loan amount doesn’t exceed 70% of the After-Repaired Value (ARV).
Q: Does Apex Landlord Services own the property or do you have it under contract?
A: We'll be offering properties to clients of The Machine which are obtained from the MLS, wholesalers, and other off-market scenarios. In those cases, we will put them under contract and then sell directly to you to avoid double closing costs. We also purchase properties at the foreclosure auction, so the company would actually purchase it, own the property briefly and then re-sell it to you.
Q: Are the rehab plans all done in advance?
A: Yes. The rehab Scope of Work (SOW), budget, and timeline have been set. The leasing and management team worked with the rehab estimator to determine the ideal SOW needed to earn the best return for you and this particular opportunity. We look at conditions A, B, and C (gut rehab, light rehab, and clean-only, respectively) and then we determine the rent and property values that go with those conditions. Finally we choose the highest return on capital for the 3 scenarios and present that as the intended SOW.
Q: What is the timeline to refinance and start the cash flow?
A: Rehab timelines can range from a few days to a few months, depending on the size of the scope of work. Most of our opportunities will likely land in the 4-6 week range. The goal is to rent within 30 days after that. Many properties will have positive cash flow immediately upon being rented, even while the higher interest rate acquisition loan is in place.
The refi typically is best completed 6 months after purchase (this comes from a combination of requirements for the the acquisition loan and the refi loan). Whether you work with our refi lender or your own, the sooner you can refinance, the sooner your cash flow will optimize.
Q: Some of your opportunities mention a 10-year hold, but 10 years is a long time. Are there any other time options available?
A: A 10-year hold period was simply the example we included. You would be the sole owner of the property and remain in complete control of if, when, and for how much to sell. Our team can even help you with the disposition, when the time comes.