All Forum Posts by: Greg George

Investment Info:

Single-family residence fix & flip investment in Peachtree City.

Purchase price: $265,000
Cash invested: $35,000
Sale price: $365,000

Full gut rehab of 1990's 3/2.5 split level in Peachtree City, GA

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

A good deal in Peachtree City is a rare find. The house is located in a sought-after neighbourhood in one of the best school districts. The home would sell at an ARV that would move quickly in the area.

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

Real estate agent. Seller was motivated by a sudden job transfer and had to sell quickly.

How did you finance this deal?

Cash

How did you add value to the deal?

This was a full rehab project that modernized a 90's-style home providing the new owner with upgrades such as granite counter tops, stainless steel appliances new tile plank flooring, new lighting throughout home, new baths, and so much more.

What was the outcome?

The home sold in one day for cash with multiple offers for $12,000 over asking price.

Lessons learned? Challenges?

The rehab took way too long. We learned to take greater care in how we screen, hire , incentivise and supervise contractors.

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

The Swann Group prospected the property, consulted on rehab, staged and provided professional photography, drone and Matterport 3D Virtual Tour.

Three partners were 6 weeks away from opening a microbrewery and had a lease-purchase agreement to purchase the property for $515K. The financial partner recently pulled out for personal reasons. The remaining two partners stand to lose the building and the $200K they already had invested in renovations. The seller would allow us to buy the building for the $485K they currently owe on the lease-purchase option and we would lease the space back to the microbrewery so they can open up in that location. The building was appraised in 2018 for $515 pre-renovation. The ARV is estimated at $750K and will lease for $16/sqft or $4,700/month. Owning a small percentage of the microbrewery is also on the table.

I conducted the due diligence on the microbrewery and believe it will be a very successful venture. The risk is that with 6 weeks to go they are undercapitalized and if they pulled out I own a building that needs another $100,000K in renovations before leasing to another tenant. I am confident, however, that they will raise the capital. There is room for financial partners with the vacancy left by the partner that pulled out and they have 2 investors interested. I have at least 2 investors interested myself.

My plan is to hold this investment long-term and use the BRRRR strategy to refinance and recoup my initial investment as soon as practical.

The investment seems sound and I understand the inherent risks involved. Is there anything I am missing? This would be my first commercial deal as an investor.

Three partners were 6 weeks away from opening a microbrewery and had a lease-purchase agreement to purchase the property for $515K. The financial partner recently pulled out for personal reasons. The remaining two partners stand to lose the building and the $200K they already had invested in renovations. The seller would allow us to buy the building for the $485K they currently owe on the lease-purchase option and we would lease the space back to the microbrewery so they can open up in that location. The building was appraised in 2018 for $515 pre-renovation. The ARV is estimated at $750K and will lease for $16/sqft or $4,700/month. Owning a small percentage of the microbrewery is also on the table.

I conducted the due diligence on the microbrewery and believe it will be a very successful venture. The risk is that with 6 weeks to go they are undercapitalized and if they pulled out I own a building that needs another $100,000K in renovations before leasing to another tenant. I am confident, however, that they will raise the capital. There is room for financial partners with the vacancy left by the partner that pulled out and they have 2 investors interested. I have at least 2 investors interested myself.

My plan is to hold this investment long-term and use the BRRRR strategy to refinance and recoup my initial investment as soon as practical.

The investment seems sound and I understand the inherent risks involved. Is there anything I am missing? This would be my first commercial deal as an investor.

Thank you for your insightful input. After speaking with the owner/agent, I submitted an offer with a stipulation stating that the due diligence period will begin after the eviction process is complete.

That was helpful, Greg H. Thank you.

I am the buying agent representing an investor who wishes to purchase a SFR in DeKalb County, GA with an eviction of a tenant with an expired lease in process. There should be no problem with the judge issuing a writ of possession to evict the tenant, however, COVID precautions have continuously delayed court sessions. Is it possible for the investor to purchases the property before the eviction is resolved and if so would the eviction process have to start over?

I am the buying agent representing an investor who wishes to purchase a SFR in DeKalb County, GA with an eviction of a tenant with an expired lease in process. There should be no problem with the judge issuing a writ of possession to evict the tenant, however, COVID precautions have continuously delayed court sessions. Is it possible for the investor to purchases the property before the eviction is resolved and if so would the eviction process have to start over?