North Carolina Duplex at the Peak of COVID-19

[Trevor West]

Investment Info:

Small multi-family (2-4 units) hard money loan investment.

Purchase price: $88,000
Cash invested: $10,500

I went under contract on this duplex with the intention of using a 15% / 15 yr mortgage from a local bank and then refinancing into a 30 yr fixed in 6 months. COVID-19 had other plans for me.

After my traditional financing fell through I dove into my contacts list to find money for the deal. I ended up finding a hard money lender i had saved but never used. The hard money lender came through in a pinch, financing 65% of the After Repair Value (ARV) of the property before renovations. This enabled me to close on the property and immediately refinance into the 30 year fixed just like I intended and actually cost me less money.

This deal taught me the power of not giving up when the deal gets tough.

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

At the time I was focused on small multi-families and this was a stellar deal.

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

Working with local Wholesalers and (before they were my team) Five Pillars Realty Group who focuses on Real Estate Investors in Fayetteville, NC

How did you finance this deal?

Hard Money Loan with a subsequent refinance.

How did you add value to the deal?

Fixed the necessary items for the tenants, provided a responsive landlord and added gutters, flooring, electrical and HVAC duct work to increase longevity and durability of the asset.

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

Yes. Five Pillars Realty Group in Fayetteville, NC is a team of savvy agents/investors focused on adding value to others and aiding them in reaching their financial and real estate goals.