929 SW 2nd Ter — Deal Brief
M & J FL Realty LLC / Deal Brief

929 SW 2nd Ter

Deerfield Beach, FL 33441 / Broward County

$246K
Estimated Value
$79K
All-In Cost
$167K
Equity at Close
8
Heirs Total
01

Property Overview

1,004
Sq Ft
6,947
Lot Sq Ft
1986
Year Built
$2,594
Rent Est/mo
Legal Description

ARLINGTON PARK 11-52 B LOT 8 BLK 13
Tax ID: 484201021220
County: Broward, Florida

Single family home on a nearly 7,000 sqft lot in Deerfield Beach. Zillow Zestimate is $245,900 with a sales range of $207,000 to $283,000. Rent Zestimate is $2,594/mo. The property is currently occupied by Robert Lovett, one of the heirs. No homestead exemption applies.

02

Chain of Title

Title originates from a Quitclaim Deed recorded April 26, 2004 (CFN# 103925671, OR BK 37313, Page 377). Mamie Lovett quitclaimed the property to herself, Fred Jackson, and Walter Jackson Sr. No percentages were specified on the deed.

Florida Default Rule: When a deed conveys to multiple grantees without specifying shares, Florida law presumes equal tenants in common. Therefore, the original title split was 1/3 each: Mamie Lovett, Fred Jackson, and Walter Jackson Sr.

Both Mamie Lovett and Walter Jackson Sr. are now deceased. Neither estate has been through probate. Fred Jackson is the only living person currently on the deed.

Title as Recorded (2004)
Mamie L. LovettDeceased 07/16/2015, Pompano Beach1/3
Fred JacksonLiving, on title1/3
Walter Jackson Sr.Deceased 10/22/2021, Pompano Beach1/3
03

Family Tree & Heir Map

Mamie Lovett had three children: Fred Jackson, Walter Jackson Sr., and Robert Lovett. Robert's different last name suggests a different father (half-sibling), but under Florida intestate succession (F.S. 732.103), half-siblings inherit equally with full siblings when tracing through the shared parent. Robert inherits equally from Mamie regardless of paternity.

Mamie Lovett's Children (Generation 1)
Fred JacksonSon, on title, heir of Mamie44.4%
Walter Jackson Sr.Son, on title, heir of Mamie. Deceased.44.4% → heirs
Robert LovettSon (half-brother), heir of Mamie. Occupant.11.1%
Walter Jackson Sr.'s Children (Generation 2)
Joe JacksonPort Saint Lucie, FL7.4%
Joyce JacksonPort Saint Lucie, FL7.4%
Tangie JacksonDeerfield Beach, FL7.4%
Walter Jackson Jr.Deerfield Beach, FL7.4%
Jermaine JacksonDeerfield Beach, FL7.4%
Jocelyn JacksonDania, FL7.4%
04

Ownership Percentage Calculation

Here's how we derive each heir's interest from the original deed split.

Step 1: Mamie dies. Her 1/3 splits among 3 children.
Mamie's 1/3 ÷ 3 children = 1/9 each

Step 2: Calculate Fred's total.
Fred: 1/3 (deed) + 1/9 (from Mamie) = 4/9 = 44.4% ✓ matches contract representation

Step 3: Calculate Walter Sr.'s total before death.
Walter Sr: 1/3 (deed) + 1/9 (from Mamie) = 4/9 = 44.4%

Step 4: Robert's total (not on deed).
Robert: 0 (deed) + 1/9 (from Mamie) = 11.1%

Step 5: Walter Sr. dies. His 44.4% splits among 6 children.
44.4% ÷ 6 = 7.4% each
Critical assumption: This math depends on Mamie having exactly 3 children and Walter Sr. having exactly 6 children with no surviving spouse. These are pending confirmation from Fred and the Walter family. If either had additional heirs, every percentage changes.
05

Acquisition Strategy & Deal Terms

We are acquiring each heir's undivided interest individually through separate purchase agreements. The strategy is to consolidate 100% ownership under a Florida Land Trust with our Wyoming LLC as beneficiary.

HeirInterestPrice$/PointStatus
Fred Jackson 44.4% $40,000 $901 Executed 3/25
Joe Jackson 7.4% $4,000 $541 Agreement Ready
Joyce Jackson 7.4% $4,000 $541 Agreement Ready
Tangie Jackson 7.4% $4,000 $541 Agreement Ready
Walter Jackson Jr. 7.4% $4,000 $541 Agreement Ready
Jermaine Jackson 7.4% $2,000 $270 Agreement Ready
Jocelyn Jackson 7.4% $4,000 $541 Agreement Ready
Robert Lovett 11.1% $5-7K $450-630 In Negotiation
TOTAL 100% $67-69K
Fred Jackson Contract Structure (Executed)

Total purchase price $40,000 net, structured in stages tied to cooperation milestones:

$10,000 upon execution, delivery of signed notarized deed, name searches, and heirship verification.

$30,000 into escrow with KHL Law Group:

$20,000 released upon probate completion confirming Fred's interest.

$10,000 released upon partition completion or full fee simple acquisition.

Conveyance is irrevocable upon deed delivery. Escrowed funds compensate Fred for ongoing cooperation, not the conveyance itself. Non-cooperation forfeits the applicable payment.

Walter Family Contract Structure (6 Agreements)

Simpler than Fred's deal. Full payment ($4K each, $2K for Jermaine) upon execution and delivery of a signed notarized deed, name searches, and heirship verification. No staged escrow needed at these dollar amounts. Same AS IS condition, indemnification, cooperation obligations, and seller acknowledgments as Fred's contract.

All six agreements route to: Joejackson.josiah@gmail.com

06

Robert Lovett Strategy

Robert is the most nuanced heir in this deal. He holds 11.1%, lives at the property, and has not been approached yet.

Robert's Position

His theoretical value: 11.1% of $246K = ~$27K.

His practical value: Near zero. He holds an undivided fractional interest in a property with no clear title, no probate, and 7 other co-owners. No buyer on the open market will touch this. He can't sell, refinance, or borrow against it.

His leverage: He lives there. Possession creates headaches in a partition action and gives him emotional negotiating leverage.

His risk: Once we close Fred and the six Walter heirs, we control 88.9%. A partition action is a foregone conclusion. In a forced sale, Robert loses his housing AND nets less after court costs and sale discounts.

Recommended approach: Open at $5K. Settle at $7K. Don't exceed $8K. If Robert pushes back, pivot to a hybrid: buy his interest AND offer a month-to-month occupancy license at $1,000/mo (below market $2,594) so he keeps living there until we're ready to sell or refi. Reframes it from "we're taking your house" to "you get cash AND keep living here."
07

Legal Status & KHL Law Group

KHL Law Group (Justin M. Henning, Esq.) is handling all legal work. Ross (at KHL) will serve as trustee of the Florida Land Trust.

Work ItemStatusEst. Cost
Summary Admin: Mamie LovettPending DCsIncluded
Summary Admin: Walter Jackson Sr.Pending DCsIncluded
Florida Land Trust SetupIn ProgressIncluded
Deed Prep & Recording (all heirs)Pending AgreementsIncluded
Title Search & CurativeOrderedIncluded
Partition Action (if needed)Contingency onlyTBD
Total Legal$6,500 - $10,000

Death certificates have been requested for both decedents (Mamie: DOD 07/16/2015, Walter Sr: DOD 10/22/2021, both Pompano Beach/Broward County). KHL is coordinating directly with heirs on deed signing, notarization, affidavits of heirship, and probate paperwork once purchase agreements are executed.

Legal fees are structured to be paid at closing out of deal proceeds. KHL holds the executed deeds, manages the trust, Ross serves as trustee, and they're completing both probates. Nothing closes without their work product. Their receivable is fully secured by the deal itself.

Order of death matters: Justin flagged that death certificates will confirm whether Mamie or Walter died first. This affects the legal path through probate (whose estate inherited what when), but the final ownership percentages remain the same either way. Summary administration is likely available for both estates (decedents died 2+ years ago).
08

Total Acquisition Cost

Line ItemLowHigh
Fred Jackson (44.4%)$40,000$40,000
Walter heirs x 6 (44.4%)$22,000$22,000
Robert Lovett (11.1%)$5,000$7,000
Legal (KHL, paid at closing)$6,500$10,000
Title search / misc$1,500$2,500
Total All-In $75,000 $81,500
$246K
Property Value
$79K
All-In (Mid Est)
$167K
Day-1 Equity
211%
Equity/Cost
09

Exit Strategies

Option A: Flip

$200K+

Net profit on sale

Light rehab$15-25K
ARV$280-300K
Flat fee MLS~$500
Closing costs~$8-10K
Net Proceeds$190-210K

Option B: BRRRR (Hold & Refi) Recommended

$61K+

Tax-free cash out + keep asset

Refi at 75% LTV$140K loan
Pay off $79K basis-$79K
Cash in pocket$61K
Cash flow w/ PM$316/mo
Still own assetYes
10

Why Refi Cash Is Tax-Free

When you take a cash-out refinance, you are borrowing against your own equity. The IRS does not treat loan proceeds as income because you are taking on a liability (the mortgage), not receiving a gain. There is no taxable event.

The math: You buy a property for $79K that's worth $246K. You refi at $140K. The $140K goes into your bank account. You use $79K to repay your acquisition costs. The remaining $61K is yours, tax-free. You now have $61K in cash, a property that cash flows, and your only obligation is the mortgage payment (covered by rent). You have not sold anything, so there is no capital gains tax. If you eventually sell, you pay taxes then, but the refi cash is yours to deploy indefinitely.

This is the core of the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat). You extract your capital tax-free, redeploy it into the next deal, and keep the asset producing income. Each cycle adds a property to the portfolio without increasing your out-of-pocket capital base.

11

Cash Flow Breakdown (DSCR Loan at $140K)

ItemMonthlyAnnualNotes
Gross Rent$2,594$31,128Zillow estimate
Mortgage P&I ($140K @ 7.5%)-$979$11,74830yr DSCR loan
Property Taxes-$350$4,200Broward, non-homestead
Insurance-$300$3,600FL market rate
Property Management (10%)-$259$3,108Full service PM
Vacancy Reserve (5%)-$130$1,560
Maintenance Reserve (5%)-$130$1,5601986 build
Capex Reserve (5%)-$130$1,560Roof, HVAC, etc.
Net Cash Flow $316 $3,792

DSCR (debt service coverage ratio) at this loan amount: 2,594 / (979 + 350 + 300) = 1.59x. Most DSCR lenders require 1.20-1.25x minimum. We're well above that, which means a better rate is likely. At a lower LTV (51% vs typical 75%), we may also get rate improvement.

The $140K loan is the sweet spot. It's enough to fully reimburse all acquisition costs ($79K) and put $61K tax-free cash in our pocket, while keeping the debt low enough to cash flow ~$316/mo after PM and all reserves. Lower loan = more cash flow but less cash out. Higher loan = more cash out but tighter margins. $140K balances both.
12

Equity Buildup & Future Refi Opportunities

Conservative assumptions: 3.5% annual appreciation (South FL has averaged 5-7% over the past decade) and 3% annual rent growth. The table below shows how equity and refi cash-out grow each year.

Equity vs. Loan Balance Over 10 Years
YearValueBalanceEquityCF/mo75% RefiCash Out
Cumulative Returns: Refi Cash-Out + Cash Flow

REFI SWEET SPOTS

The play: Do the initial $140K refi now to recoup your entire basis and pocket $61K tax-free. Hold and cash flow with a PM managing it. In Year 3-5, when appreciation has pushed the value to $273-292K, do a second cash-out refi to pull an additional $70-90K tax-free. Redeploy that capital into the next deal. Every dollar comes out as debt (not income), so no tax event until you eventually sell.
13

Open Items & Next Steps

#Action ItemOwnerStatus
1Confirm Robert Lovett is Mamie's sonJF / FredPending
2Confirm Mamie had exactly 3 childrenJF / FredPending
3Confirm Walter Sr. marital status at deathJF / Walter familyPending
4Confirm all 6 are Walter Sr.'s only childrenJF / Walter familyPending
5Execute 6 Walter family agreements via DocuSignJFReady
6Negotiate and close Robert LovettJFNot Started
7Send Fred's valid ID to KHLMatthewIn Progress
8KHL orders death certificatesKHL / JustinRequested
9KHL engagement letter + fee confirmationKHL / JustinPending
10KHL coordinates deed signing / notarization with heirsKHLAfter Agreements
11KHL files both summary administrationsKHLAfter DCs
12KHL partition estimate (contingency)KHL / JustinRequested
M & J FL Realty LLC / Confidential Deal Brief / April 2026