All Forum Posts by: Jason Velie

Hey Hunter, I'm an investor in the area as well. I have a flip in Leland that's pending sale now. What you need to do is calculate your Return on Equity (ROE). Assuming a sale price of $280,000 with 6% in realtor commissions, $1,000 in seller closing costs, and $5,000 in seller concessions, if you owe $220,000, your net proceeds would be roughly $37,000. Assuming a tax rate of 20%, your net would be around $30,000 (unless you did a 1031 exchange to defer the taxes). If we assume your net Cash Flow is $150/mo ($1,800/year) after repairs and CapEx, then your ROE is 1800/30,000, which equals 6%. If you're confident that you can use that $30,000 to generate more than a 6% return, then you have your answer. Feel free to reach out if you ever want to connect. Good luck!

@Michael Gandia

Hey Michael, I’m an investor in the Wilmington area. I know of a quad that’s for sale about 30 minutes North of Wilmington. Feel free to message me and I’ll send you the address.

@Gillian Scott

Hey Bud,

Joe Prillaman hosts a Bigger Pockets Meetup at 7pm on the first Tuesday of every month at Waterline Brewery.

Coastal REIA hosts an event off of Government Center Drive on the second Thursday of every month.

There’s also a TREIA meetup and Pints & Properties meetup that you can look up as well.

A couple of us have been discussing starting up a commercial multifamily meetup that will meet for breakfast once or twice a month, so that may happen as well after the new year.

Networking is key!

@Gillian Scott

Hey Gillian, I’m an investor in Wilmington as well.

Calculate your ROE (Return on Equity), and your answer will be clear as day.

Feel free to reach out any time!

@Griffen Colucci

Collins & Collins is another one that some investors use when buying from wholesalers here, but I haven’t used them yet.

@Griffen Colucci

Hey man, most wholesalers I know in this area use Don Walton out of Jacksonville. I’ve bought properties from wholesalers through this attorney, as well as through Harry Marsh Law (mail-away closing).

I’m about to list 2 on my flips this week in Leland and Wallace, and I am looking for the next ones. If you haven’t already found your buyer, please send me the details. Thanks!

@David Campbell

I invest in multi family in the Wilmington area because I live here, but it’s a very small market. If I were out of state looking in Eastern NC, I’d be looking in the Raleigh area.

@Joe Prillaman

I drive for dollars using LandGlide to build a list, then export it and upload to YellowLetterHQ. It’s only $0.47/postcard (including postage) when you’re sending 1,000+ at a time.

Obviously there are plenty of other methods and systems to try, but this has been working for me so far. I don’t know how it will perform in area like CB with that level of competition, but it’s worth trying!

Someone else I know is having big successes here with mass texting campaigns, so that may be worth looking into as well.

@David Stuart

I’m in Wilmington and it’s like 96 degree with 100% humidity, so you can cross that one off your list lol

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $450,000
Cash invested: $90,000

21-year-old turn-key 8-plex with a brand new roof. 8 units, each of which are roughly 970 square feet, with 2 beds and 2 baths. Located in Burgaw, NC (Pender County), about 20 minutes North of Wilmington, NC.

This deal all started with a turn-key singlewide trailer with land that I bought last year (from a wholesaler) for $15,000. I sold the trailer 7 months later for $98,000. I then did my first 1031 exchange to use these proceeds as the $90,000 down payment on this 8-Plex.

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

I found this deal via a hand-written letter directly to the owners. They happened to be going through a divorce and said it was perfect timing for them to sell. I offered $435,000, they countered with $450,000, and I accepted.

How did you finance this deal?

This was my first commercial loan, and I used a local credit union. I used the 1031 money to cover my 20% ($90,000) down payment. They financed the remaining $360,000 at 4.25% fixed for 5 years on a 15 year term with a 20 year amortization.

What was the outcome?

I believe that the fair market value, with current rents, is around $700,000.

I plan to do a cash-out refinance on this property in 6-12 months to hopefully pull out $200,000+ that I can use to buy more properties like this. I will also increase rents from the average of $675/mo to match market rents, which are currently around $850/mo and increasing rapidly. Once rents are $850/mo, I calculate the value to be around $950,000.

Lessons learned? Challenges?

It was easier to finance and close on this deal than it is to do one single family deal. I will definitely continue looking for properties like this. I may also start hunting down some much larger properties, and go the syndication route. Time will tell!