Another new build in Charleston SC sold in one week see link

[Jay Hinrichs]

http://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+other/run_public_link.html&public_link_tech_id=1alvy1yrs8ot&s=18&id=1&san=10895&cid=1

62 Poplar..

deal points..

Bought lot 1 year ago.. if memory serves  125k ish all cash

1500 sq ft.. custom  see picks

200k to build

30k 5 % total commish 

5k closing costs 

45k  Capital partner

all in  385k   Say 500k

Net 155k or so .. Almost 30% gross profit  that's about as good as it gets for us.. can't do anywhere near that well in Oregon.. 15 to 20% is norm in ORegon.. but we do 30 a year.

[Jay Hinrichs]

I go to Charleston 3 times a year for 2 to 3 days.. I combine this with a trip to the other Markets I am in.  so going end of month..  this trip will include  OKC  Indy  Charleston and Orlando.

FINANCING is the hard part for sure.. when I started there I used cash and combo of private money ( my existing investors who we know well). I am not sure if there are HML that do ground up in that market I never looked for those.. I know on West coast there are some.

After we had a few years under our belt and successful track record  IE about 15 or so bought built sold with strong huds to prove profits.. I started talking to small local commercial banks.. They were nice ( its the south) but at the end of the day I got no takers first go around.. I had one bank take me to loan committee only to be turned down ( that is a first for me)  But when you don't live in the area pretty tough to get a bank loan for this type of project unless you simply deposit the amount of money you want to borrow in the bank and they loan it back to you.. ( now I know that sounds crazy but I have done that before to establish a relationship with a bank in Washington that led to  a 4 million dollar line of credit)  Any way.

Got a referral to another bank.. We did our usual I flew down we met we toured ( our GC toured all our projects with him) Our GC was instrumental in making this happen as well. the bank wants to know you have solid team in place.  packaged up our financials and he took us to loan committee and we got approved for 1 million with the idea to double and triple that shortly. We are about to go in for the two million as we have spun 4 loans now with them..

Every time I am in Town I make it a point to go to lunch with our banker there .. we talk often we give them data when asked.. etc etc.. its a relationship you have to work hard at keeping as well.

End of the day Rock Star Real Estate brokers ( we do not deal with wholesalers I bought one out of 30 props from a wholesaler and it was a jumbled up mess LOL but we got it and it will work out good) we buy right off of MLS.. And or our GC does a little door knocking when we have a project going he meets the neighbors buys them beer if needed ask them to watch our houses so they don't get vandalized in the course of construction that type of thing.. Some of where we are building is was the HOOD we are regentrifying the streets and areas.. literally there are houses falling down right next to our 500k spec.. its crazy it was a risk I started 4 years ago.. It was us and basically one of other company that saw the potential.. now competition is keener.. lot I bough last week had 4 offers and went to highest and best and I got it with an escalator clause non of the other agents thought to do it.. I instructed our agents on the fine points of it.. ( being a Bay AREA guy we have been doing them since the mid 80S LOL)

So there ya go that's how I do it..

TEAM work and everyone makes good money...