Just finished 102 unit condo conversion

[Alex Franks]

This was our Biggest project to date.

Took old vacant Apartment. We rebuilt from the wall out. replaced every thing including all pipes under the ground , roads , pretty much everything.

This was a 2 year project. I took over the GC on the Job. What a learning experience.

Our UK partner raised the funds. We then leased the units the a local college for 5 years. Then sold the units off separately to international buyers. Looking for long term cash flow properties.

Currently we have 16 rehab projects 90 mile radius of Charlotte NC

Building 10 new construction rentals

 24 new construction homes in Ft Mill SC Breaking Ground ( planning commission meeting stage )

So that about it for now

Alex

[Alex Franks]

Originally posted by @Sam Watson:

Question(s) for Alex: what was your mindset when you decided to take the taxed cash from each separate unit rather than sitting for cash flow? (I take it you scored a killer deal from these yield-starved international buyers). Economies of scale would dictate that a smaller unit would sell for more/sf than selling the entire complex at once - what was the going out cap looking like on average for those sales? In what submarket of Charlotte was this project located?

Congratulations, by the way. Sounds like a very rewarding (in $ and knowledge) experience!

 Sam

This project came about because the turn key flip Market fell apart for us. The hedge funds came and in and basically took over that market. So we actually looked at the property the year prior. Bid on it just to see. We found the guy who purchase it( he got a heck of a deal ). Basically we paid $350k for 102 in Gaffney SC. Raised private funds ( 95 of all the  projects  we have completed have been private funds )

Back to the apartment unit I was looking $2.2 million rehab and keeping as low income project. My company was a partner in the project but was also  the GC ( subbed everything out )I did personally run the job for almost 6 months. Definitely a huge learning curve and took a lot out of me mentally and physically. The extra money from GCing was not worth it. Again a lot of lessons in this business. You just have to listen with open ears and closed mouth (  which is very hard for me I talk a lot )

As for the international  investors we were connected in a few markets with partners ( still are ). Selling turnkey rentals , we had and still have financing in place for the international.

Planning a trip to Hong Kong after we get the first 30 rental built so hopefully by April.

Yes your are corrects we took a building that  the value would have been roughly ( pushing it ) 3.4 Million.   New Rehab brand new everything ( including roads , infrastructure and building basically. Still  Low income which is a tougher sell always around. Me personally will not touch any thing less then a B project from this point forward. Again lower end does work just not for me.

Now on the sales the UK team sold them.  Average return they were promoting 10%  to 15%. Uk team had good connections in China and UK. So basically he needed product for his clients. We had two other projects with the group. Demolished 55 units, then building 122 units Also in Gaffney SC. 136 units being converted  in Gastonia NC . Our company is just being paid per unit at sales. So have minimum parts in either project.  Would not run a project like that ever again.

Our company is currently signing a contract to build 150 New construction rentals in NC ( for a major reseller of Turn key rentals ) . Building retail projects in SC side ( Rock Hill, Ft Mill , and Tega Cay) So things are getting interesting so to say. This time around we have built a much better team. We brought in top agent for sales. Top local Commercial developer/ on the project. As well as a few builders.

So please ask away and stay in touch

Bare with my grammar and spelling. 

Its horrible unless my wife has time to recheck my post.

Alex