All Forum Posts by: Laurance Kevin Washington

@Jody Schnurrenberger, thank you for taking a look at my post.  If there's anyway I can help you please reach out to me. 

Since then, I've firmed the larger ticket numbers like roofing, drywall & plaster and foundation; all of which have bids in under my projected cost to implement. My attic space has high ceilings, so finishing that out for a master suite or loft/rec area could be an option as the the project timeline & budget develop. I'm drawing plans for both options. 

Also, people are seeing my deal & starting to request my proposal for private funds; which is good! I wish I had the funds loaded already, but I'm not disappointed that I focused on finding & securing the deal first. I have great rapport with the seller and can hopefully adjust my expected closing date. 

Salutations BP fam!  

I've just contracted another residential redevelopment house and I'm focused on bringing the best quality product to the Birmingham, AL market that's possible; regardless of my limited experience. I'm ready to keep this one for myself a flip it!  Truthfully, I've served in my state as a Realtor or real estate agent (there's a difference) since 2012. I've been very successful in residential sales, single & multi-family property management, and respective leasing and marketing getting timely & reliable results. My clients & customers have been pleased & my name is strong. Now that I'm making serious progress in my creative marketing campaigns I want to pull the trigger... take the leap & put my expertise to work for myself.  Tonight, I'm approaching this community for insight, straight-talk & confirmation. 

About my Company: I've built a full-service realty operation with long-term commitments to effective strategy and the clients that trust me in mind. The foundation of my company is a bit unorthodox, being comprised of timeless principles necessary for any lasting success to be realized. For details on this PM me for a link to the website which is being structured now.  

The deal: A woman, recently divorced, answered my marketing letter; I immediately visited with her and did my initial property walk & offer. I initially contracted the house at... let's just say too much. Once I got solid repair estimates from trusted contractors & subs & performed an objective comp analysis I renegotiated on the dilapidated property. The owner was able to significantly reduce the mortgage amounts using gifted funds from her family members.  I now know that at this price & with the required work I have a respectable deal that will kick-start my redevelopment & investing careers.  Here are the numbers- all else is well documented & ready upon request. 

*Acquisition: $40,000.00

*Soft costs (permits, space planning, utilities, insurance): $7295.0

*Construction Improvements (materials & labor& staging): $97,545.0

*Contingency for mishaps (10.3%): $10,047.1

*Agent Fees @ 6%: $12,900.00 (as stated I'm a licensed agent & MAY decide to list the home myself. Even so my commission will revert back to the spread as a savings of 3%) These #s reflect hiring the right listing agent. 

*Closing Concessions to Buyer(s) @ 3.49%: $7,154.5 >> I've lined up a Title attorney for both transactions.

** ALL IN @: $162,894.5  ( the Scope of Work agreements @ J Scott's & others suggestion are clearly defined) My idea is to bring this property to like new condition with quality craftsmanship- cutting no corners. No "blow & go" b/c this property needs to ride the recent appreciation wave that the area is experiencing. 

** All in that's : 76.4% LTV when ARV/ Retail is calculated at $215K...

*** Low end gross profit: $20,058...... Expected gross: $40,058...... If contg. is used.

*** Low end gross profit: $30,058...... Expected gross: $50,058...... If contg. is Saved.

What I'm asking: 

*Best practices & what to expect when being my own GC....... I've contacted BHM city already; without any post renovation residency clauses they WILL allow me to act as an unlicensed GC  given I submit approved drawings for all work & all work is performed by licensed, boned & insured contractors & subs. This isn't a problem for me since all my repair quotes  & bids come from such. Also, I have significant autonomy with the bank I work for that will allow me to visit the site twice to three times daily during the 3 month reno process.   

* Access to private & or hard-money sources that will allow me to access funds held in escrow on draw based on completion stages of work. As an added bonus I've worked my calculations planning to give my partner(s) the "lion's share" for trusting me and helping me with capital resources.

* Insight into your experiences with rock wall foundations common to southern climates & soil types during 1930s. 

* Insight on this deal as a whole. I want to be sure I'm understanding the micro AND macro perspectives here. 

I humbly thank you all for your feedback and suggestions. For a first project I'm going to be busy; however, I'm not afraid of work & I'm sharp so I'm prepared for this challenge. I have other deals in my pipeline that I need to contract. I want to scale my business in a steady and organic manor so that I can work on my business full time. I'll soon be ready to hire out the bottle-neck roles I'm currently doing myself. 

For anyone on the fence about getting things done for yourself. I give a word.... Get sharp & just do it. Be real with yourself & do all that you can do; outsource the rest cause you might not be the best at that thing. 

- LK Washington

7|Stone Development Group

@Zachary Peacock, welcome to the real estate frontier! If you're just starting out I'll share my mind with you. Wholesaling is the spear-point of finding viable deals. The process can work for most any type of property & is well accepted across all asset classes; still, it's most common to start with residential homes. But if you identify a multi-plex of any sort, take action on it!! Underwrite it as if for your own portfolio; heck, like it's your Dad or Mom's portfolio. Remember, though, to keep it simple, simple, simple. 

*Educate yourself (but not on the computer all the time).... You need to engage yourself in "learn knowledge": Podcasts, relevant literature, BP forums (like you've bravely done here) and I would even recommend a legitimate RE Investment course that'll only run you about $150 schnapps or less. If it ain't in the budget; keep it pushing. Like @Rene Montelongo mentioned: Get to every single RE meet up near you. Build actual relationships & never fear from opening your mouth to what your need... which at this point is INFO, CRITERIA, LOCATIONS, ZIP CODES, & YES AREAS CURRENTLY getting HEAVY REI ACTIVITY.

*Get access to some lo-tech (any-type of tech that works for YOU) data holders. You need the following: County Property records, and the ability to discern what the map is telling you. You'll need a way to save & review the leads you'll capture from the various actions you'll take to attract deals. I use excel because I'm an Excel "Pro" of sorts. if you ain't got the Excel skill; keep it pushing another way. 

*Get in the car & Scout (preferably w/ an area map): Pen, paper, or tablet. Just be prepared to take photos of struggling, under performing real estate. Record the address & near by streets. Find a simple way to inform them of your serious interest to purchase the RE. Mail -knock doors- get them on the phone- & when you're ready open a way for them to find you online. 

*Build your Relationship Building Muscles: No disingenuous, halfhearted, moocher networking. Get to know people, find out how you can actually help them. Give more than you expect EVEN THOUGH it may seem as if you have nothing to give. Realtors (who understand investors will appreciate you), developers & builders usually have a hard time finding land. & active investors are eager to analyze deals from a serious newbie & will bite the right deal. 

*If you have a deal the money WILL come. Balance building that buyers list with taking action to get control of property or the contract at least. Always be honest & real with your motivated sellers. We don't need the car-salesmen stigma to get any bigger with investors than it is. No shady business. I hope this helps & I'm sure your on your way to profits!

Young, and focused with a bit of tenacity I'm growing my real estate service business in Birmingham, AL by raising the bar in the level of service and insight I bring my clients each day. Now 4 years in business I'm learning more each day and working to achieve my goal of financial wisdom & independence; working, but for myself as a developer/investor. My current forté is listing, marketing & selling residential and commercial properties for clients. I have the sure aim of helping buyers buy with long-term consequences in mind and helping my sellers realize their profits. I began my career in managing multi-family communities from luxury to student housing to single family income producing properties. An added bonus is being trusted to consult investors to help them find smart buys & meet their cash flow ideals. Now, I'm ready to tackle my own deals!

I'm here to absorb as much real estate & finance fact as I can. My aim is to sharpen my real estate development, sales, negotiation, and project management skills. I also want to share my knowledge and passion with others- to inspire, spur to action and even refine my peers.