All Forum Posts by: Danielle Malecek

Hi Tony, I would love to know more about this, and the success you mentioned in Nashville. What's the best way to get going and connected with this?

It's always worth looking backward to determine what went wrong then, and whether will it happen again. However, it's worth examining the unique position that we find ourselves in now. 

While all you really needed back then was a pulse to buy a house, now, in addition to tightened lending standards, we are also faced with a dramatically shifting economic backdrop. While signs point towards a recession (inverted bond yields, for example) growth and inflation remain strong (while less strong, of course, than just months ago), as does the general majority of emerging economic data. I don't believe we will see the Federal Reserve peeling back rates anytime soon (they are still raising rates after all), because of the aforementioned factors which they are trying to control. 

One thing that we haven't seen is a nearly 15-20 year period where 30 yr mortgage rates have hovered at or around 5%, followed by a period of soaring inflation. The federal reserve has indicated that their target "terminal rate" or when they'll stop raising rates, fluctuates based on inflation. 

What I wonder is how we will adapt to this new period of interest rates being significantly higher than an entire generation of people is used to experiencing. Even though lending standards have never been tighter, there is no calculation that builds in the reduced buying powers from borrowers who are spending more on interest than ever before, while the costs of basic goods like bread, eggs, and milk are also soaring in costs. 

I am not saying that we will experience the devastation that we did during the 2008-2010 crisis. We are far better prepared. But what I am seeing is that the future of the housing market is unpredictable, at best, based on these nuances which haven't been built into models or accounted for in other equations. These unknown accounted-for variables, if you recall,  played a significant role in the demise of the financial system over a decade ago. It's

safe to say that the lending world is much different now than its been, but how can we predict that what we haven't seen or experienced yet?

Hi Everyone, 

I'm seeking input from the community as I am interviewing with agencies in the Western NC area. 

About me:

* 18 yrs experience in Institutional Finance and Technology Sales

* Experience managing a short-term rental, and the house purchase and sales process

* Deep understanding of bond and interest rate markets

* Investor/Finance forward with sales skills and a knack for strategy

What I'm looking for:

* Opportunity to focus on selling to/for/on behalf of investor clients 

* Training and mentorship - without a programmatic schedule for my day

* The opportunity to learn and grow from a team or group of individuals

* A firm that embraces an entrepreneurial spirit

I am sure that this community can provide a number of individuals who represent these qualities. I would love to hear your suggestions and thoughts, even if you don't have an agent locally here you can recommend!

Thanks,

Danielle

@Chris Davidson great question! Short Term rental for the 6 months that we hosted was $20k, with occupancy at about 50%. This was without much advertising. I believe the Durham area is a great area for investment because of the growth and amenities in the Research Triangle (North Carolina) area. We hosted guests and their families for graduations from Duke and UNC, hospital stays (one woman spent 3 weeks recovering at the home which was 15 minutes from the hospital she was treated), and of course weddings and visits to the area. I recommend Durham as it is still relatively affordable and offers the potential for strong future returns on down the road. (Also, I did an evaluation of how the area weathered the 2009 financial crisis and discovered home prices were significantly less volatile than the majority of the rest of the country.

Hi to the Bigger Pockets Community! 

I'm Danielle! In my former life, I was an analyst for hedge funds and investment banks (CMBS, MBS, and Bonds). I am now a licensed realtor in Western North Carolina with am focused on helping others create their own investment portfolios while also being an investor myself. The picture below my first purchase, which secured a return of 119% in just 7 years. How? Flipping an all-original Mid-Century Brick ranch into an MCM Marvel in Durham, NC.

As a Bigger Pockets enthusiast, I am looking forward to learning more about how others got started in finding their first homes. I currently live in Hendersonville, NC and will be affiliating with a Real Estate firm here locally soon. Please let me know if you have any suggestions for superstar realtors who might be looking to add to their team!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $253,000
Cash invested: $45,000
Sale price: $565,000

We purchased this as our first home and listed the home as a short-term rental while transitioning to our new home in the mountains.

The single-story brick ranch, built in 1967, was purchased from the original owner. It was without floors in 2/3rds of the house, and with nearly all the original decor. With seller credit, we installed wood flooring throughout the home, with the exception of the mudroom and basement, where we installed LVP at our own expense.

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

Initially, we wanted a primary residence home that we could eventually become a turnkey rental. I was also attracted to the large lot (.69 acres) with near proximity to downtown Durham. Finally, we knew there a number of improvements like a fresh coat of paint on the wood paneling, removing the popcorn ceilings, and small bathroom remodels, wouldn't cost us a lot of money out of pocket, but would provide us a modern appeal.

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

We found this deal through our realtor. Since the home was without flooring and we were financing, we were able to secure a $12,000 credit from the seller and they were kind enough to let us install flooring during the due diligence period.

How did you finance this deal?

We did, but we had to make sure that the home was in good and working condition (i.e. Flooring must be installed!) before hand. We put down 10% and had a HELOC on the remaining 10% for the downpayment, with a 30 Year mortgage at 4.375%.

How did you add value to the deal?

We updated nearly the entire house:
- installed new lighting
- updated bathrooms with new fixtures and a fresh coat of paint
- Partially painted exterior (brick) and modernized architectural features with new wood
- Added 8 ft Privacy fence with a motorized gate to provide access to the garage

What was the outcome?

After commissions and other selling expenses, we had a gain of $300,000 at close, with just under $45k total investment

Lessons learned? Challenges?

I wish we would have used the HELOC on our home to make some additional updates.

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

Adam Dickinson from Nest Realty in Durham was outstanding helping us to sell the home. He gave us ideas on what else we could do to achieve a higher list price during a particularly challenging time in the market.