Today I wanted to give you guys just a quick update and talk about a deal that we closed as of this morning. Actually, I saw that the bank wire was completed about 10 minutes ago while I was setting up this video. We had talked about this property in the past, 6800 Quinton Drive. It's a property we picked up off of our direct mailing pieces, and the way that we helped out our investor.
The way we worked together is that we brought in the first round of cash, and he brought a bridge loan.
Now what's great about that is we were able to get him in and out of the deal in about 90 days and we got him what would equate to a 20% annualized return on investment. I mean, that's the beauty of what we're able to do, is get our investors in and out, and depending on what you want to do with your cash, we can set up that strategy for you.
Quinton Drive was purchased for 128,000. We dropped another $11,000 in repairs and listed for $189,000. Here are some of the photos so you can see that we dropped about $11,000, $12,000, by the time it was said and done, on just a cosmetic overhaul on it. We ended up selling for 182,500 less the closing costs of 4%, and ended up netting around $27,000 for our company.
When it's all said and done, the amount of money that we're going to make on this was pretty good, because it was very minor work for us, so our dollar per hour is right up there. But what I'm most proud of is that we were able to do this and only have to make two interest payments and we did somewhat of a video blog with Mr. J as well. As the property was being taken through the construction process, we would go in, take videos, send one minute clips of saying, "Hey. Here's where you are on your investment," and then keep him up to date on things like negotiations and closings.
Again, from his point of view, this was 90 days of very secure, very easy money, because even if we hadn't provided a personal guarantee and he had to take over that first position loan, there was plenty of equity where he could have hired someone completely separate. To give you some terms on what we have provided him, was we actually gave an 8% loan with three points on the back. It was a bit of a sweetheart deal to help him out with getting into the deal itself and getting a little bit more familiar with how we operate. Like I said, we made two interest payments. Our closing is today and the phones are getting wired directly into him ... or sorry, his account. That might be a little fatal if we put money directly into someone.
If you guys do have any questions or you want to join in on our next deal, because we have another three or four in the pipeline right now, and you want to do either a bridge loan or you want to get even more involved and look for a little bit higher rate of return, we can structure those as well. As always, feel free to send me an email, email@example.com. You can reply to this video or the email that I'm sending it through, and I'll talk to you guys soon.