All Forum Posts by: Scott Ashworth

@Mario Gonzalez given those two [2] options I would agree with @Amy Shutes…Charlotte > Durham. Especially given the parameters you laid out. 
Adding to Amy’s point of moving outside the Charlotte (Durham) area - the farther you move from city center, you open your opportunity to long term success. What was on the “fringe” 10 years ago, is hot today. 

I’d recommend creating a 15-20 minute radius outside the hot spots

hi @Annchen Knodt - we send out ~3,000/month. Our postcards are neighborhood specific...and we also sprinkle in some driving for dollars since the geographic footprint is so small.

Thanks @Nicole Butt! The Seller contacted a local appraiser and paid for appraisal himself. This gave us a starting point -- he was happy I paid the appraised price. And I was happy to get it for the appraised price. win-win

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $335,000
Cash invested: $405,000

Buy & hold property purchased in Cary, NC. 4 bed, 3 bath house with sunroom and screened-in-porch.

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

Location

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

Driving for dollars & writing hand-written note. The Seller had an appraisal performed in May 2021 and I agreed to pay that price.

How did you finance this deal?

Cash - but will be a BRRRR.

How did you add value to the deal?

It was a 4 bed, 2 bath property when I purchased. I added a 3rd bath, giving the master bed it's own bathroom. We put in all new plumbing (pipes) and electrical.

What was the outcome?

We got a 12-month lease with $3,000/month.

Lessons learned? Challenges?

I hired a project manager to manage my current/future projects.

Investment Info:

Single-family residence buy & hold investment in Cary.

Purchase price: $242,250

Just purchased this property (April 2021) - Seller will rent back for $0/month through July 31, 2021. We will do extensive renovation & Rent

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

Location

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

We sent out postcard mailers

How did you finance this deal?

Cash

How did you add value to the deal?

Rearranged floorpan, gave the master bed a larger bathroom, added mud room off carport & kitchen

What was the outcome?

We are using this property as a short-term rental.

Lessons learned? Challenges?

This project led me to begin the hiring of a project manager to manage the renovation side of the business.

Investment Info:

Single-family residence buy & hold investment in Cary.

Purchase price: $330,000
Cash invested: $410,000

Completely renovated 3/2 ranch near Downtown Cary with professionally landscaped yard. All new flooring throughout. New mudroom off carport houses laundry. Open concept! All new ss appliances, cabinets and quartz counters throughout. Kitchen has 8' peninsula! Large bedrooms. Master bath is a dream.

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

This home is near several of our other properties. We love the neighborhood & its proximity to downtown.

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

I was looking for a flip, and called the List Agent about another house. During the conversation, I realized the house I called about was not going to work out - so I asked if the Seller had any other properties. He said they did, a rental that they planned on selling once the Lease expired. I asked if they would consider not making any repairs and selling now to me.

How did you finance this deal?

Cash.

How did you add value to the deal?

Added a mud room off carport. We enlarged kitchen. Completely updated the home.

What was the outcome?

We have a short-term renter (6 months) for $3,500/month. Similar sized homes with fewer updates have sold north of $470,000 in the last 10 days.

Lessons learned? Challenges?

We had a 30-day timeline for renovations. We put teeth in the contract with the contractor that gave him a bonus for finishing early/on time and reduced his final draw if he was late. This project finished on time, and a little over budget. It is a long-term investment for us, so in the long run we will be happy.

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

Chris London stopped by several times and provided valuable feedback

@David Cook I would go directly to a conventional lender. 
The way the cash out refi works is: lender will appraise the property, and give you 75-80% of the value in the form of a check. Some banks will loan 80%, so I’d recommend calling around. Once you receive the cash, you’d pay your sisters.

In this case, you may find yourself 20% short (since the bank is making you leave some skin in the game). In this event, you either pay them from your pocket, or see if they will finance that over a period of time. 

@David Cook my suggestion would be to determine an agreed-upon price today, and see if your siblings would entertain seller financing. 
If they do not “need” the money today, they may enjoy getting a monthly income stream from you. 

This above calculator takes into account 94% of $800,000 sale (6% commission), each sibling receiving $20,000 upfront (total of 5.2% down payment or $40,000), 3.5% interest and a 30 year note. 
given this info, each sibling would receive $1600+ each month for the duration of the note or until you refinance. This means they’d make $19,000+ passive income each year. 
may be another way to “skin the cat”

The other way to back into #s: figure out how much you can rent this property for, and put down larger down payment 

Seth, I agree with @Russell Brazil on this. Once you pick up an investment or 2, it will really lend to your credibility in the niches you dive into. 

In the meantime, do your research to find the niche you like, and become the expert in that area. This will help you speak confidently about the subject. 

In terms of loyalty: investors are loyal to the deal. Whoever brings them the deal, is who they are loyal to. That said, I have 1 investor client who likes to find his own deals, and uses me to negotiate and bring my Relationships to each transaction. 

In my experience, if you provide exceptional value to your clients, they will become loyal. If however, someone else provides more value, their attention will be turned elsewhere (note: value to one person will look different than value to another)

@Chris London you nailed a lot of this on the head. For one, folks that work in RTP are not concentrated in one specific city/town. Another, CH's high property taxes do not make it easy for investors. I have had success in Cary, but I have some friends who have done better in Apex. I do not believe it is coincidental that my buddy lives in and loves Apex, and I live in and love Cary. It helps to know where folks want to be in each respective city/town. 

With regards to rents: I too am seeing folks from out of state who are looking to rent my properties. The 4 most recent states: TX, CA, WA & NY. I had a 4 bed/3bath property listed for $2,600/month, they told me they were paying $3,500 for a smaller property that was not a nice. My point is: if folks are moving from out of state, those folks are accustomed to paying more rent. 

The trick of course is to give the Renter a great value. We try to do this by paying for Quarterly Pest Control, Yard Maintenance (weed & feed and grass cutting) and high-end finishes. Our rentals range $2,200-2,750/month and we have no problem keeping them rented.  

@Chow Ahmed feel free to DM me if you have any questions