All Forum Posts by: Corey Edwards

I'm looking for an experienced, professional general contractor in the Durham/Triangle area who can handle multiple projects from light, cosmetic flips to full gut renovations. If you have any recommendations, please let me know. Thanks BP Family!

@Zack Crews I'd be really interested in be a part of the mastermind. Thanks for setting it up. I'll check Facebook.

William, a lot of the REIA meetings have gone virtual in Charlotte or are on hold at the moment. Check out MeetUp.com. All of the big meetings have a presence on there.

Labor costs in many areas of the country, especially in Charlotte, were at an all-time high before the coronavirus pandemic. Is now the time to push the reset button and get those labor costs down?
Yes, I know everything's negotiable, but I wondering if anyone out there has started to ask for or seen labor pricing dip since the coronavirus began. Is it simply because there's not a lot of work out there and many contractors our lowering their prices to get anything they can? If so, do you think this trend will set a new baseline that investors can use moving forward or will it be hard to keep labor costs down once the pandemic is over?

Originally posted by @Ryan Rader:

So what am I missing??

I have spoken to several banks and other lenders today. I keep getting told that because the purchase price is less than the reno that they can't help. Also was told since the single family home is on the same property as the duplex that they are unable to help. They all agreed that the it sounds like a great deal but they are unable to help. So everyone says that if it's a good deal the money will come. I am definitely not seeing that??

So what I found out from the county zoning office was the property could only have 3 units on it. So my plans would chance a bit so in this case it would be a duplex with 4 bed/2 bath and a single family home with 4 bed/2 bath. The sqft of each side of the duplex is roughly 2000 sqft. The house is 2100 sqft. So I have check local rent in the area for 4 bed/2 bath and the rent is on average $2000/month with $1000/month being the low side and $1667 being the median. 

So spoke with the sellers of the property and they are willing to work with me in regards to numbers since I uncovered the limitations of of the number of units on the property that are allowed.

So my current thinking is...Offer $70 - 80k for the property and since we do not have to renovate as many rooms I am estimating rehab being about $150k or less (have a contractor meeting me Thursday to get another quote). So all in I am looking at about $220k - $230k. The properties ARV is $365k but some properties in the area are going for somewhere around $400k - $719k. Using the biggerpockets calculator using the low end numbers the profit would be $1456/month and CoC ROI is 56.62%.

Spoke to a couple realtors in the area and they feel renting out 4 bed would not be hard with 3 Universities in the area.

So what am I missing?? I am honestly thinking about cashing out my IRA to just pay cash, but really don't want to be hit with such high fees especially when cash is so cheap.

Thanks,

Ryan

@Ryan_Rader you're not missing anything. You're just asking the same 1 BILLION DOLLAR question that I've been racking my brain with lately. Every time someone asks HOW/WHERE to the money question, the response is always the money is out there or go to a REIA, so they can't all be wrong ... I guess.
I'm currently looking for a "great" deal that I can put an air-tight package together for investors, so I can hit the REIA circuit and pitch/SELL it to them. We'll see how it goes.
But if you're in Columbia, I would encourage you to drive up to Charlotte and attend the Deal Makers Session. They meet every second Tuesday of the month (there's actually one tonight). You can find the event information on MeetUp.com. The meeting is specifically set up for people to pitch and buy deals, and there is a lot of out-of-state eyes in the area looking for good deals.

Welcome @Wei W.. I'm relatively new to BP living in Charlotte from the Lowcountry of SC. There is a WEALTH of information that will really help you on BP. Let's connect and hopefully we can work together in the future.

They definitely do things a bit backwards in my home state of South Carolina. I learned that the hard way. Anyone charging a fee just to come out to give you a quote is probably telling you indirectly that they're too busy to give your job the attention you think it deserves or their cash strapped. Either way, you're probably better off exploring other options.

Originally posted by @Charlotte Dunford:

@Corey Edwards My business had revenue and the line of credit was solely revenue based.

 Thanks Jingwen. I figured there was something the bank used to base the line of credit on. 

Originally posted by @Charlotte Dunford:

Ways I've actually done deals with. Most are not no-money down, but are low money down. 

1. Seller financing with 10% down.

2. Business line of credit with $0 of my own money out of pocket.

Jingwen, did your business have established credit already or did you use your personal credit to get the line of credit? 

Jonathan, good luck with your goal. Stick with it and make it happen. Let's connect and hopefully worked together in the future.