My name is Justin Davies, and while not new to Bigger Pockets, this is my first post.
I just closed on my first official deal in Asheville, NC. I have flipped a couple of houses with my father in law in VA, as well as successfully completed a live and flip with my wife. This deal is the first where I have used private money to finance the acquisition and rehab costs, and where I solely control the rehab and accounting for the deal. I will contract out some of the work, and complete the rest on my own. The rehab is mostly cosmetic in nature, and should take 10-12 weeks to complete. The property was acquired for $145,000, and will require $28,000 in rehab. ARV will be around $217,000. My margin will be around $15,000, and this property definitely does not adhere to the 70% rule. However, knowing the Asheville market, and aligning myself with a knowledgeable buying and selling brokerage team, I know the property will be easy to move. Also given my knowledge and exposure to the industry, I went into this deal knowing what the house would need, and that there would be no major rehab surprises. The lesson I have learned already is that it is important to use the guidelines and parameters encouraged by those who have gone before us, but also be open to pursuing a good deal if properly vetted to break into a market or just to keep moving forward in your individual real estate pursuits. Had I adhered to the 70% rule strictly, I would have missed this opportunity. Thankfully, my private lender shared this same mentality.
Asheville is a smaller but highly competitive market, and there is a housing shortage currently taking place, with home prices being at all time highs. Deals are getting much harder to come by, and those that do surface are gone almost immediately. We went after a few other properties, but were not able to lock them down, or margins were too tight. We had a huge advantage on the property we acquired as they called for highest and best, but allowed less than a two hour window for those offers to be submitted. We were an all cash offer, and we were able to make it inside of the extremely short window. That two hours knocked out most of the competition.
My passion for real estate and exposure to the industry spans beyond a few flip houses. While in SW VA, I spent almost 9 years with one of the larger brokerage and property management firms in the area, and oversaw the commercial facilities and operations for the portfolio. I now work for a firm based out of Asheville that owns and manages a variety of real estate, including shopping centers, stand alone triple net properties, restaurants, multi-family and storage centers. I oversee facilities and operations for the entire portfolio that runs from NC down to FL, as well as managing new development, most recently including ground up development of a multi-tenant building and 3 large indoor secured self storage centers. I am thankful for the industry exposure my job has afforded me, as well as for all of the knowledge I have gained from working alongside individuals who have been in the real estate and development space for 25+ years.
While I enjoy the fix and flip model, my real goals lie within long term buy and hold opportunities. We own one rental in VA, and we are pursuing more in the near future in the greater Asheville area. I intend to use upcoming fix and flip opportunities to help finance future rental property acquisition. I am also working to pursue financing opportunities for flips outside of the Asheville area, including Charlotte and Greenville. Through work in those cities, I have contractors and brokers lined up in those areas for when I have the financing in order. I am excited to explore those markets further.
I am grateful to Bigger Pockets for the wealth of information they provide, and the exposure to the stories of some truly remarkable individuals. I look forward to contributing where I can, and continuing to learn from those around me. When the property has sold, I will update with final numbers and any valuable take aways.
