All Forum Posts by: Robby Nash

I’m new to posting on the forum so wasn’t sure how to fill in the “cash invested” section. The quick numbers are:

PP: 81

Rehab: 112 (~25 spent so far)

ARV: 245-255

The house is in rougher shape that we could tell when purchasing (it was a hoarder house with like 3 feet of stuff through the whole thing). I anticipate us struggling to stay under that rehab number. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $81,000
Cash invested: $210,000

Nearly full-gut rehab in the Captain's Landing Subdivision. Located in Harnett County, the community has a private river access and boat ramp. Originally built in 1940, this 2-bedroom home with over 9' ceilings will shine once again.

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

We've been searching for a fix-and-flip for some time and found this early spring.

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

This was found on the local MLS.

How did you finance this deal?

We obtained a hard-money loan from Upright to help us fund this deal.

How did you add value to the deal?

This home was a previously neglected. There was roughly 3 feet of clothes, trash, etc. piled in the entire house when we purchased it. We have so far removed all the stuff, gutted almost the entire house, and are currently stuck in permit jail working on the septic relocation.

What was the outcome?

tbd...

Lessons learned? Challenges?

We're in a bit over our head here. The age of the home and its two decade vacancy has led to more damage to the structure than we originally thought. We will end up having to complete more of the labor on this project ourselves than planned and we will be fortunate to finish this one without being in the RED.

Investment Info:

Single-family residence other investment in Rougemont.

Purchase price: $18,000
Cash invested: $245,000
Sale price: $335,000

New Consruction spec home built with the help of a hard money loan from Upright (Fund that Flip at the time). 1420 sqft, 3 bedroom, 2 bath home on 1.8 acres.

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

My business partner and I created Quality First Builders, LLC, to build new construction spec homes in the Triangle and surrounding areas. My partner has extensive experience in the new construction industry, and see opportunity in the triangle for in-fill and rural lot new construction.

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

We originally purchased side-by-side lots in this neighborhood for $68k from the local MLS.

How did you finance this deal?

After selling one of the lots for $55k, enough liquidity was freed up to partner with Fund-That-Flip (now, Upright) to finance this project.

How did you add value to the deal?

We took a vacant lot and built a quality home!

What was the outcome?

We were able to quickly sell this spec house on the MLS at full asking price. There are now some first time homeowners enjoying their new home, oh yeah, and we made some money.

Lessons learned? Challenges?

My biggest take-aways from this project were confidence, trust, and excitement.
- Confidence in our ability to produce a quality product and improve our systems
- Trust gained in the hard-money lending community
- Excitement for future projects!

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

I was the RE agent in the purchase of the lots as well as the sale of the spec home. Eager to help others in the area looking to do similar projects.

The GC in my company is having a hard time getting his General Liability Insurance renewed. Seeking help from the experts:  

Who do you use for your GenLiab coverage? Do you have a GC you consistently work with? If so, what provider they use?

Thank you!

Hey Will,

I've had my license in NC for a little over a year now, here's a breakdown of the expenses I had my first year.  Definitely recommend getting the Post-licensing courses out the way as soon as you can because I think there is some really valuable info in them (honestly it's pretty surprising to me that you can practice RE without them!).  Glaringly missing from these numbers are any office fees, material/marketing fees, etc. but those will vary firm to firm.  If you're serious about going this route to actually sell residential real estate and not just for supplementing your pursuit of being an investor, I would strongly recommend David's new book "Sold" (in the BP library).  I'm reading through it now and wishing it was out when I was getting going; it has great info on getting started and valuing the right things.  Hope this is helpful and best of luck!