All Forum Posts by: Ron Jacobsen

Investment Info:

Single-family residence fix & flip investment in Holly Springs.

Purchase price: $209,000
Cash invested: $17,000

Mostly cosmetic renovation, including paint, carpet, hardwood floors, light fixtures, exterior landscaping, etc.

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

Helping the sellers retire easily to their smaller home near the coast.

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

Direct seller negotiation and purchase via direct mail.

How did you finance this deal?

Private lender

How did you add value to the deal?

Helping the sellers create their dream transition/exit after 20 years of living in the home.

What was the outcome?

We're hoping for a full price offer soon.

Lessons learned? Challenges?

We always learn on every deal. Sellers always have their reasons for selling at a discount, they might not always be in financial distress but perhaps simply want "easy".

Hi Stephen, just posting my experience. I’ve had much the same experience as the previous posters. Real estate investing can be a tough business. There’s much to learn and it can be a lonely business. I purchased my HomeVestors franchise in Raleigh 4.5 years ago and it’s been a great experience. Tough? Yes! Just like any new business startup, it requires commitment and hard work but I personally could not have done it without HomeVestors. I’ve bought 80ish houses in that time period and I feel I have a real, duplicatable business system that will sustain for the longer term.  HomeVestors gave me the training, systems and community to go the distance.   I wish you well in your journey. 

Hi Swaroop, feel welcome to join us at the monthly Traingle Deal Maker Sessions, a forum where real estate wholesalers come to present their off-market properties to investors, rehabbers and landlords. In addition, the Triangle Real Estate Investors Association (TREIA) is a wonderful edcualtional venue - search both at Meetup.com or Facebook for meeting times, etc. 

@Nicholas Gray I’d recommend working for a lender to real estate investors, especially given your top tier education, I think they’d find your experience attractive. Companies like Lending Home, Lima One, etc are companies I’m thinking about but there are likely 20-30 more. If you worked in this area, you’d be exposed to all sorts of investors, deals, deal structures and terms. Cheers!

Hi Ben, kudos for you wanting to make progress financially. However, this seems to be a highly speculative investment, especially to risk precious HELOC funds. Can your contact provide you with any performance details of other tiny houses in the area? If so, how does your location compare to yours? If he can't procide that data, why not? The rate assumption seems very high for the NB area. Contact AirDNA to order an AIrBNB competitive survey to find actual rates and occupancy details in New Bern. I would not make a long term investment decision based on a hurricane event. From my hotel days, most adjusters prefer staying in hotels to gain their coveted club points. I suggest, holding your powder for a investment that isn't so risky or where you can get solid information. With HELOC funds my preference also would be for it to be a shorter term play (less than 18 months) vs long term. Just some thoughts...

@Nathan McQueen welcome to the area. Besides TREIA, which is a wonderful organization, several years ago we started Traingle Deal Maker Sessions (find us on Facebook or Meet Up) a setting where wholesalers and rehabbers/buy and hold investors connect. It’s a free event so come check us out. 

Amadeus, I echo the advice of your first responder. You’re a young man, practicing patience as you move forward will reap far more rewards than buying something at the wrong numbers. Wait for the right deal, save more cash, learn more and meet more wholesalers.

I'm planning on attending as well.