BRRRR and Flips in Fayetteville, NC

BRRRR and Flips in Fayetteville, NC

Real Estate Agent · FAYETTEVILLE, NC · Member since 2020 · 25 posts · 15 votes

Since the turn of the year, nothing changed overnight. Corona Virus still affecting major part of the world and real estate has it's own reaction to this epidemy. As the interest rates sunken the market went on even crazier grip and day after day the inventory reduced drastically.  Home sold after a bid war of 25 plus buyers become a new reality of day to day real estate transaction that get the stress of buying a home a totally exhausting business, almost un attainable, however here we go. 

Located next to one of the biggest military base in station, soon after the movement of the troops restarted the market got even hotter here in Fayetteville and Fort Bragg Area North Carolina. 

In this market that is very competitive for regular buyers and sellers it is even crazier on the investor's side. Things getting sold a lot over the asked price and despite being boots on the grounds and getting connected with local wholesalers and investor, I find it almost impossible to land a deal. The idea that I would like to launch here is to ask the local investor and out state that have rental here, how are you growing your local portfolio and the most important how do you get your rehabs done?

The entire idea of this post is to shoot out and connect with more investors in area and find out how we can help each other and make the things work for everyone. 

Looking forward for my first BRRRR, now in May as soon as i find a property that will make sense.

Cheers Everyone and let's find out how do you find the current situation and what is your biggest challenge to make the things work?

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Rental Property Investor · Apex, NC · Member since 2019 · 55 posts · 29 votes
5y

@Ion M. Cerga do you also manage properties in Fayetteville? The only reason I haven’t started investing there again is the lack of a good property manager.

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  • Stuttgart Germany · Member since 2021 · 10 posts · 8 votes
    5y

    I have been trying to break into this market sense last year. At first timidly, then trying to wait for the Moratorium to end, and now, more agressivly.   

    I am a long distance Investor, so my first step was to set up my Team.  I have been placing offers above ask, and covering closing costs, and earnst money deposit.  Only to have the seller come back with a requested for best and final with due dilligence money of 2k. I hate the idea of due dilligence money, and won't do it, so I loose out.  Usally to the Investor who offers 10-30k, over and put in due dilligence money. They buy the home at a price it won't cash flow.   Pushing prices even higher.  Leaving me to go back to the drawingboard, with ever slimmer margins.

    It is worth providing some context to these purchases.  In addition to low inventory, something else is at play here in this market, and across the country.

    Many people, my self include, believe we may be at the start of an increasing inflationary period in the US.  Several factors, such as 26% of the US money supply was creates in the past year (WallStJournal 21Feb2021 https://www.wsj.com/articles/t... ) and supply shortages of everything.... I wont bore you with more.  The point is, if you believe that 'hyper inflation' is around the corner then your best bet is to short the US Dollar.  One of the easiest ways to do this is to borrow as much as you can and invest in Real assests.  Actually there is a great oversimplified Video I'll post below.  ( if the link isnt working then just YouTube  Economics Explained Hyperinflation)

    Anyway, those type of thoughts create fear, and panic buying. People would rather loose 20-30k to gain a house then 20-30k to inflation.  So what's the fix? Individually we can do nothing but continue to try to out bin eachother on each offer. There must be something we can do collectivly to help work together?  However, I dont know what that looks like for small Investors such as my self.

    I know most group investment stratigies involve laywers, and be an accredited investor. I'm not there yet, and at this rate it seems to be slipping from my grasp.

  • Real Estate Agent · FAYETTEVILLE, NC · Member since 2020 · 25 posts · 15 votes
    5y

    Thank you so much for your vast reply and here I would like to outline few ideas that I got:

    1 competitive market same as everywhere it is true and with the idea building more relationships through realtors, I am one as well, vendors and wholesalers something will come to fruition. Got the strategy, got the funding, know whom to ask to get homes rehabed just looking for a deal that will work for me and my family. 

    2 most money printed in the history, agree. Even though I'm not watching TV I'm aware of it and feat currency slowly but steady is getting close to a collapse. 

    3 shortening the dollar idea was great, here it comes in mind the kyosaki ideas about money and assets so getting debt for assets makes complete sense if this assets cash flow and appreciate,  investors who over bid had in-house construction and great financing arrangements that make sense to over bid and narrow the profit margin. 

    I'm looking to buy 5 rentals till.the end of the year, some of them brrrr some turn keys so looking forward to get it completed. 

    whoever needs a person boots on the ground around Fort Bragg, let's connect and I'm looking to help and share with u may knowledge about local market, residential and multi family. 

    Cheers.

  • Rental Property Investor · Apex, NC · Member since 2019 · 55 posts · 29 votes
    5y

    @Ion M. Cerga do you also manage properties in Fayetteville? The only reason I haven’t started investing there again is the lack of a good property manager.

  • Real Estate Agent · FAYETTEVILLE, NC · Member since 2020 · 25 posts · 15 votes
    5y

    Gennaro my dear friend , Italian by chance? I had few very good friends from Italy while working in Abu Dhabi at Etihad Airways. I can take care of your rentals in a bit. Spoat, Jackson and Brownie are the PM that are working With Alex Felice From Bigger Pockets, they take care of more then 400 plus door, and they are working with plenty of out of state investors. This Sunday we have scheduled another meet up so lets connect, phone nr and email address and let's see how we can work together i'm looking ot move slowly closer to Charlotte and Raleigh area due the fact that my wife is a nurse and investing oportunities as well real estate.

    Cheers.

  • Rental Property Investor · Fayetteville, NC · Member since 2018 · 41 posts · 26 votes
    5y

    Best bet is to wait for the moratorium to lift and the courthouse auctions to open up unless you have someone who can feed you good deals now. SFR are ok to overpay a bit right now depending on the strategy IMO but people should be worried about overpaying for residential multi with non primary conventional or commercial loans. I watch them flying off the market over and not coming close to the 1% rule and I just look at some of mine that are closer to 1.3% or better and I am still finding it hard to pull a profit after 2yrs with a few CapEx fixes mixed in and I just wonder which calculator they are using.... idk. if you over pay you over pay. I would wait for the moratorium to lift. Hopefully it is soon.

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