Argo update: from 2 flips in 2015 to $12.2m and 45 units in 2017

[Troy Sheets]

- In 2015, my partners and I started our company and completed 2 single family flips. The first one we used day labor, handymen, a few licensed subs and lots of our own labor, all financed by personal loans and credit cards. The second one we used a bank loan and a full service GC. Unit count for the year: 2

- In 2016 we became GC's and completed 2 more single family homes; 1 new construction and another small rehab. The new construction single family sold for the highest price ever recorded for a single family in Brewerytown...by over $50k. Unit count for the year: 2

- In 2017 we built 64,882 sqf of properties for ourselves as GC's. We started completing our first multifamily projects having just learned about this asset class during 2016. We converted $1,756,000 in acquisitions to $12,264,500 in completed value. We hit the highest comp for a triplex rental building selling the rental property a full point below competing cap rates for our market. By the end of 2017 we raised over $3,238,000 in investor equity in our projects. Unit count for the year: 45 

- In 2018, our acquisition costs of projects in development are already forecast well above $3 million and completed value well above $11 million. We are forecast to complete at least 80,000 sqf of properties. We are starting our CMX development portfolio having only started in this asset class with a test the waters project in early 2017 before diving in on full scale commercial corridor redevelopment starting in early 2018. 

Unit count for the year: at least 69

We have never acquired a fully performing, stabilized property. We've never lost money on any real estate investment projects (the GC business is another story). We have relationships with over 10 lenders including the region's largest and smallest banks, and we also have relationships with private and hard money lenders.

Since we started ~2.5 years ago, we have completed or have in progress:

• 45 projects with a peak of 21 active projects at one time.
• 141 Units totaling 173,872 sqf 
• We have acquired ~$6.4 million dollars worth of real estate and built out nearly $30.5 million worth of value from this portfolio

Our biggest projects to-date are forecast for 2018-19. We have not started planning 2020, but we have some ideas! 

As a side note, I met both my partners @Jeremy T. and @David Ross right here on BP. We've made friends and found private lenders on this site. We've collaborated and worked with people from this site. It's been an invaluable asset and I can't thank the good folks at BP enough for putting this site together. 

Feel free to ask questions, we're happy to answer what we can. 

[Erik Harrison]

Hey Troy, great story. How did you and your partners meet up? A BP event? How did you decide to go into business together? Do you write up a formal business plan?

Your business sounds amazing. Good luck and thanks for the great post.