September 25 2013 Jacksonville, NC Project

We currently have two solid projects in Jacksonville, North Carolina to tell you about. We are working with Gary Haynes and Lou Ellis of Ellis Construction Company. Gary is real estate investor and Lou, his father-in-law, owns Ellis Construction and has done many deals over his long career in the construction business. It is his vast network that brings his deals to him. With the discount in the properties we are buying and Lou Ellis's construction experience, I am confident that we will successfully finish these projects and our investors will receive an impressive return on their investment.

Both of these projects are located in Jacksonville, NC, which is a city of 70,000 and the home of the Marine Corps Base Camp Lejeune and Air Base New River. Due to its large military presence, it holds the distinction of the youngest city in the U.S., with an average resident age of 22.8 years. As such, it is a great candidate for starter homes such as the two we are working on. We believe Jacksonville is a stable community that is well suited to these types of rehab projects so we look forward to finding more deals here and will let you know as they come about.

For the first deal with Ellis Construction, John Hostetler and I have placed $75K of our own money into a project at 505 Sage Court, Jacksonville, NC 28540. This 1,542 SF single family property has 3 bedrooms and 2 baths. The purchase price was $40K, and the rehab costs are estimated to be $35K. This project is expected to take less than 4 months to complete. After being fixed up, this property is projected to sell for $125K, which will be a net profit of $36K.

We also just started on another great deal brought to us by Ellis Construction. This is another single family residence located at 1105 Castle Drive Jacksonville, NC, 28546. This home is a 1,513 SF property with 3 bedrooms and 2 bathrooms. The purchase price is $50K and the rehab is estimated to be around $32K. The project will take about 4 months to complete, and after renovations, the house should sell for $132K. The net profit will be about $37K. For this deal, Ellis Construction is giving 4%/month. In exchange for managing the project, we will take 1%/month for ourselves and offer 3%/month or 36% annualized return to our investors.