Lesson Learned - Investors still shortsighted.

[Levi Bennett]

Investment Info:

Single-family residence wholesale investment in Charlotte.

Purchase price: $155,000
Cash invested: $500
Sale price: $145,000

Available now!!

Average Days on Market (ADOM) for 3-4 bedrooms in this neighborhood (in last 90 days) is just 5 days!

Features:

3/2 with flex room (4th bedroom possible with frame out closet in large flex room)
Large open concept living/kitchen
New roof (architectural shingles, 2017)
A/C 7 years old (manufactured 2010)
Front and back wooden deck
Small neighborhood, 7 minutes to uptown
Across the street from Elementary School
Vaulted Ceilings
Original Hardwoods in living areas and hallways
Fenced in yard
Stainless steel range and dishwasher
WHAT IT NEEDS

Master bath remodel (there is a very accessibly crawl space, so this should be easy according to the contractors I've spoken with)
Reconditioning of hardwoods
New Carpet
Paint
Refrigerator
New interior doors
Minor landscaping (one tree removal)
ARV: $220,000
Repairs: $20,000
LIST: $175,000

What made you interested in investing in this type of deal?

This is area is transforming at break-neck speed, and this home is in a quiet neighborhood across from an elementary school. Sellers were motivated to move quickly and we were able to secure a price way below market for an easy assignment to a rehabber.

How did you find this deal and how did you negotiate it?

I knew the owners through a realtor introduction (who sold them the home to begin with).

How did you finance this deal?

We don't finance wholesales.

How did you add value to the deal?

By building a relationship with the property owners and doing our own inspections and contracting estimates.

What was the outcome?

Not great. Most investors we spoke with are beginners and did not see the value of the new HWY 74 completion. We ultimately sold it for way less than we anticipated and I was able to break even.

Lessons learned? Challenges?

We learned to get feedback investors who tend to like trendy areas rather than what we think is a good investment, or areas that haven't showed up on the collective radar yet. The end buyer did very well as we did not get a lot of showings, and they were able to make a massive profit despite the perceived risks.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Jan Teel from Teel Realty has an eye for investment real estate way before the trend reflects in the collective minds of most people. This allows us to identify properties with huge potential around planned and completed state infrastructure upgrades.