All Forum Posts by: Zac Hales

 He is exactly right

Hey Greg.

Ive seen a lot of the flips youre mentioning in Durham and i think the issue may be location.  Durham is unique and values can really change within a small geographic area based on which direction you go.  text me if you have any more questions.

 I think this response nailed it.  Practically speaking, Appreciation, mortgage paydown and depreciation alone are worth it.  Thats thousands.  Cash flow is hundreds, if youre lucky.

 They certainly are a different animal and I think offer a lot more possibilities than other style homes from the era

Investment Info:

Single-family residence fix & flip investment in Peterson.

Purchase price: $110,000
Cash invested: $630,000
Sale price: $870,000

Two new builds in Lakewood - Durham. These two were quite a challenge because of the heavy sloped lot, riparian rights, and stream buffer. I would of preferred not to be in it, but it was certainly a good learning experience.

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

It was actually not my call. A very good friend was the investor and I was on as an agent helping with selections and decisions as well as getting them sold.

How did you add value to the deal?

We made good selections and didnt over build or underbuild. The homes were the right size and price for the lot

What was the outcome?

Both sold off market. Took longer than anticipated but that was largely due to covid. The spike in prices certainly worked in our favor.

Lessons learned? Challenges?

Stream buffers, retaining walls, lots with narrow road frontage, supply chain issues

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

I was the listing agent. Happy to discuss both buyers agents. They were awesome. If youre reading this, you know who you are :-)

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $57,500
Cash invested: $200,000
Sale price: $367,500

Infill new build in Durham. We secured a perfectly flat lot with a few hardwoods and mostly brush and sold it with a new build done to some buyer specifics.

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

First new construction project

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

I knew the lot was getting sold and we made an offer before it was listed.

How did you finance this deal?

Construction loan

How did you add value to the deal?

New construction on a great lot new Duke Hospital. I found the lot, helped with selections and got it sold before hitting the market on the back end.

What was the outcome?

Took longer than anticipated but with appreciation it worked out great.

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

I was the only agent

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $140,000
Cash invested: $65,000
Sale price: $245,000

1960s Ranch Flip in North Durham. We had a little bit of a challenge on our hands: a massive oak tree stump, an old septic system, only 1 bathroom in a small house. I am not personally a fan of trying to sell a home where there are 3 bedrooms to any 1 bathroom if I can help it. We opened up the common area, then dedicated some of the space toward having two bathrooms stacked together, rather than just one. Then relocated the laundry and added a door to the storage room for access.

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

Location, barrier to entry, the house itself

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

We found it via agent connections before it was listed.

How did you finance this deal?

Cash

How did you add value to the deal?

We did some rearranging of interior walls in order to make room for a second bathroom to make the home more appealing. We also painted the outside and added a totally new kitchen to go along with the two bathrooms.

What was the outcome?

As costs started to climb, I brought in a buyer of mine personally, and the house was never listed. We did not make what we had hoped but the speed of turnover made up for it.

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

I was the only agent involved

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $290,000
Cash invested: $100,000

1960s Ranch Remodel in the heart of Raleigh (Between the beltlines!). We knew this would be a home run based on the location, as the next wave of North Hills development will soon reach us and homes will be sold for a hefty tag for just the dirt. New builds in the area are starting at $1.5 million.

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

Location, the lot, the house. Everything was a great opportunity to add a ton of value.

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

Listed in our Local MLS

How did you finance this deal?

Conventional financing and cash

How did you add value to the deal?

We took it from a closed off 4 bedroom 2 bath to a very spacious 3 bedroom 2 bathroom with open areas and large master suite. Added a deck, fence, landscaping, siding, roof...everything.

What was the outcome?

Currently sitting on over $200k in equity! Great cash flow because we bought as a primary and got a sub 3% interest rate

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $385,000
Cash invested: $160,000
Sale price: $595,000

1910 Craftsman Revival in the heart of Durham. I am not proud of this one if Im being completely honest. I was the agent and the majority partner was given too my runway to make decisions and did not listen to myself (the agent/ smaller partner) or the other smaller partner (also the contractor). He raised the price by over 5% at the last second against my wishes and we ended up having to sit on the home much longer than necessary. We ended up coming off market to add more value to sell it

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

Size and price point

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

Listed in our MLS

How did you finance this deal?

Private Money

How did you add value to the deal?

Interior and exterior remodel including siding and paint.

What was the outcome?

We got it sold and made a decent profit. It could of been much much better but I was not allowed enough say. I am sharing this because its valuable for everyone out there to see that not everything is a home run and sometimes youre lucky to hit a single. But also, its important that the experts in the area (myself as the agent and the contractor who was also a partner) are actually listened to, and just because you put forward more money does not make you the expert.

Lessons learned? Challenges?

Knob and tube wiring is wild!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $170,000
Cash invested: $80,000

We bought this off market from a family friend and it needs absolutely everything. Once its down we will have a great little rental that we can also enjoy.

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

Having a cash flowing property on the coast

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

Off market deal with family friends

How did you finance this deal?

cash

How did you add value to the deal?

We are doing new everything. This is a full gut job in progress

What was the outcome?

Still in progress!

Lessons learned? Challenges?

Pulling permits with a municipality I have no experience with and managing a project from 3 hours away