Profitable Developments, Inc. (PRDL)

[ThSeeker]

Let's put the deal into perspective relative to the PR on the purchase of the property

...they have signed a contract to acquire three separate properties in Pennsylvania. The company expects to receive a commitment for financing these properties within the next week.
Carl Grant, President of Profitable Developments, has been working closely with DREA Partners to purchase distressed properties. "These first three properties represent the beginning of many upcoming acquisitions, they mark the beginning of our strategy to re-invigorate our business plan. We are actively working to identify the best distressed assets that we can purchase for a fraction of their value and sell for a significant ROI, this is a very exciting time for all involved." Said Carl Grant.


Now we don't know what they paid for the property that sold yesterday but we know they put $20K in for renovations

So does the following sound like they met their goal of
purchase for a fraction of their value and sell for a significant ROI,

? Purchase price
$20,000 - Renovations
$15,350 + selling price

No matter how you look at it they not only did not sell for significant profit but actually lost money.
Why?

- A stupid NO RESERVE auction for starters.

- They bought in a depressed neighborhood from the looks of the pictures. How you going to make significant profit in that area on a quick turn?

Makes me wonder. They should be doing this kind of business as a private company. If they cannot raise money themselves without needing to take shareholder money how savy are they in real estate?
? They need to step up their game significantly. JMO