Easy Example: How a Groupvestors Deal Works

Let’s walk through a simple, real-life example of how a Groupvestors deal works. This will show you how Lending Circles and Equity Partnerships help investors rescue distressed properties and make money — together.

Step 1: Finding a Distressed Property

Groupvestors identifies a property in Waterbury, CT that’s facing foreclosure. The owner is behind on mortgage payments, and the house needs repairs. The property is worth $200,000 fixed up, but it can be purchased for $120,000.

Step 2: Forming the Lending Circle

Groupvestors forms a Lending Circle of 5 investors.

Each person agrees to invest $24,000 to cover the purchase and initial repairs.

Step 3: Buying and Improving the Property

The Lending Circle buys the property for $120,000.

They set aside $25,000 for repairs: fixing the roof, painting, and updating the kitchen.

Total investment: $145,000.

Step 4: Selling or Renting the Property

After repairs, the property’s value increases to $210,000.

The Lending Circle decides to sell it and earns a profit of $65,000 ($210,000 sale price minus $145,000 investment).

Step 5: Sharing the Profits

Profits are split equally since each investor contributed the same amount.

Each investor receives $13,000 profit.

Why This Works

• Investors shared the costs and risks.

• The distressed property was rescued and improved.

• Everyone made money in a fair and simple way.

In Summary:

Groupvestors helps small investors team up to buy, fix, and profit from distressed properties — without going it alone. This teamwork approach makes real estate investing safer, easier, and more rewarding.