All Forum Posts by: Michael Griffith

As the owner of a property management company myself, I would be asking what portion of these repairs were tenant caused damage. Review the lease conditions with the property manager. Each state differs on what is considered normal wear and tear vs damage. Most leases state the tenant is responsible for damages such as broken blinds, holes in walls/etc. It may be some of these charges should have been deducted from security deposits. 

Student rentals can be lucrative but ALWAYS have more damage and wear & tear. Turnover costs always eat up profits. The $65/hour rate is cheap for our area. They should certainly be able to provide a detailed account of labor hours and materials. 

I recommend requesting the detailed reports and scheduling a meeting with them to discuss everything in detail. 

Investment Info:

Condo fix & flip investment.

Purchase price: $116,000
Cash invested: $27,000
Sale price: $187,500

Replaced kitchen, updated bathroom, drywall repairs, paint and flooring.

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

Area and quick turn around

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

Came through a wholesaler where I was one of several bidders. Using real numbers and knowing risk, I ended up with the deal

How did you finance this deal?

Hard money loan

How did you add value to the deal?

Renovation

What was the outcome?

Flipped in 2 months for a 45k profit

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

As a Realtor, I was the listing agent for the property.

The statement that all NC contracts are assignable would be false. The bulk of attorneys and brokers use the 2-T OTP that is jointly approved by the NC Bar Association and NC Association of Realtors. The 2-T is not assignable without additional seller & buyer consent. To be assignable, it would have to be stated in the contract. The majority of attorneys will not do assignments in NC. Many of the attorneys that do assignments will share a contract that they will close with.  

My last full time in office assistant didn't work out. Wanting to try a VA, but trying to find legitimate sources for RE specific VA's is a bit overwhelming. Looking for reliable sources.

@JD Martin 2 for sure. When you have 20-30 buyers fighting over each listing, only 1 client/agent is getting the deal. Most of the agents I know are down about 50% (myself included). At this point last year, I had already closed around 20 deals.

What are you trying to gain from the relationship with the property manager? Rental comps, or something more? How often do you plan to contact them (time is valuable). I do property management in the Triangle.

Daniel, I’m a broker and property manager in Raleigh. Very few properties are Currently performing at the 1% rule if purchased in the last 3 years. Market values are just too high. Send me the address and I can tell you a realistic rent amount. If you’re not as concerned about cash flow, it certainly may be an appreciation investment to hold on to. 

I reached out to my tenants on 3/21 to check in with them and to ask if they were making out okay, or affected by Covid. Every one of my tenants paid in full before 4/1...

I’m a broker in the Raleigh area. The market has been hot here for a number of years. We’ve had quite a lot of out of area investors buying inventory, including new construction. A lot of sub markets, but not many areas that are not good for investment. It is very difficult to get anywhere near the 1% rule unless you are doing value add, or renovations. Low concentration of 2-4 unit properties, so expect competition. Southern Wake County is seeing tremendous new construction growth (Apex, Fuquay Varina) Teamtrianglerealty.com

@Nick Chungo If your contract is the standard 2-T, then the 14 day extension is automatic and no notice is needed to be in effect. Either side can be the delaying party as well. You are not obligated to grant any further extensions though. If the property does not close by 2/14, then the contract is expired as of 2/15. The one issue that you may run into is the release of earnest money (if it’s held by an attorney or a brokerage), and of course eviction if it gets to that point.

FYI, I am a broker in the Raleigh-Durham area. TeamTrianglerealty.com