All Forum Posts by: Mike Feehley

I am a NC coastal STR owners as well. We keep our calendar open 1 year out. I don't know if there are any real advantages of it bc we don't generally get 1 yr out rentals. We have several repeat guests that like to book a year out but I have slowly tried to turn them to direct booking.

My business partner and I purchased 100 acres in Clover SC.  Just for reference, Clover sits right over the SC border, about 30 min to Charlotte and is highly desirable given the schools alone.  

We purchased the property for $1,300,000.  We financed the note for around $850,000, 2 business line of credits ($200,000 each) and we brought the remaining cash.  

The plan has/is been to develop a neighborhood of 46 homes.  The county allowed us to sell 8 of the lots, because they were on the main road (a paved country road).  We quickly sold through these lots at an average price of $120k.  With those funds we paid down the note to around $700k, we paid off the LOC's, obviously made payments on the note and LOC's, and paid engineering fees for the design of the community itself, which will house the 38 internal lots.

Today, we have county approval for the community, we expect average lots prices for the remaining lots to be around $125k+.  We went back to the bank to secure approx $1,200,000 for the horizontal piece, which includes culvert for creek crossing, clearing for roads, and roads themselves.  The bank has now advised us that given the current conditions of the economy, they are pulling back on any new lending.  While we won't need the money until Q1 2024, I need to work towards securing this financing.  I take calls about the lots daily and expect a quick sell of all lots.  We are fortunate that our local economy has remained strong and home sales have really only taken a hit because of the lack of inventory.

For full transparency, I am a successful RE agent of 20 years and my business partner is a very successful builder in the Clover and surrounding area.  

I realize that I could go to a hard money lender but I wanted to explore any other options our there.  If I have trouble finding a lender or individual that will offer financing for the horizontal, I thought about exploring the possibility of finding a lender that will provide higher LOC's for us, $500k each, and we could bring the rest to the table.  

Thank any of you that can offer suggestions or advise.

-Mike Feehley

Investment Info:

Condo fix & flip investment.

Purchase price: $165,000
Cash invested: $25,000
Sale price: $250,000

This was a 1/1 in Uptown Charlotte. The condo had been owned by the original owner, who had owned it approx 30 years. The condo was located in the center of Uptown and provided a great location and also offered secure parking.

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

This unit had never hit the open market before.

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

I was presented this opportunity through a friend. My friends aunt had dies and they did not want to take on any renovations that were needed within the condo. I was able to secure hard money loan which allowed for a quick purchase and the extra funds to renovate without pulling from my personal funds.

How did you finance this deal?

Hard Money

How did you add value to the deal?

Total renovation although the unit was small. Tore out all flooring (tile), kitchen, and bath. Placed LVP throughout, new kitchen and quartz countertops, paint, and light fixtures.

What was the outcome?

Sold 1 day on the market.

Lessons learned? Challenges?

Building is in one of Charlotte Historic Districts which caused an issue with replacing the HVAC unit on the roof. Oddly, several other units were replacing theirs at the same time and they were not held up by historic... I guess I was just the lucky one :)

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

Me, I am the agent.

Has anyone used Addressable for marketing as an agent?  The investment is about $10k and you essentially get 16 mailers out of it (around 400 cards each mailer).  The cards look great and stand above most marketing postcards or direct mailers that I have seen.  Just thought I would see if anyone has used them, they claim about 7 calls per mailer.  They advertise a couple very successful RE groups as their success stories and I have reached out to those groups and of course, no response.

Thank you all in advance.

@Dave Foster , Thank you!  That makes perfect sense.

It was done in May of this year. I am simply trying to limit my exposure and liability and that's why I was trying to put into LLC. Yes it would be SMLLC, I have and LLC now that is an S-Corp for RE commissions but I would start a new one for this.

Is it smart to put each home into its own LLC? I am closing on another one next week, if I was to put that into the LLC, if I was ever sued, they could go after all homes within the LLC, correct?

I own a STR, no note attached, which I bought through a 1031. I would like to move the deed into an LLC, what implications does that have in regards to the 1031? Honestly, if this is not allowed, would anyone ever find out? Thank you in advance for any advice