All Forum Posts by: Alex Franks

You say "private funding". So you know these lenders personally, right? After all, they are private. If they say "private lender" on a web site or other public place, then they aren't private, are they?

I am a private lender. If I don't know you and your 'deal', I ignore you. Actually, if I know you, I ignore you too... but that's a different topic;)

Hello,

I'm hoping to start building productive places in the Queen City.

I was studying in SCAD when I took a few too many architectural history courses. From then I learned about sprawl, then Congress for New Urbanism, then the Small Developers group.

Charlotte is the queen of sprawl, but she has a ring of excellently laid out neighborhoods. The future of the city will be in it's downtown core and inner neighborhoods.

I want to slowly build up my portfolio starting from the duplex then on up, contributing to these neighborhoods along the way. Walkable urbanism is in such great demand but the supply is just not there.

Transit is abysmal, zoning is awful, but I see the winds of change coming.

My family is in real estate, but mostly related to sprawl. At one point they managed a shopping center on Independence. When they saw East Charlotte start to go into decline, and NCDOT start tearing up the road and turn it into an awful highway, they packed up and invested further out.

Instant Equity! Light Rehab Opportunity! 

726 S College St. Henderson, NC 27536

Bedrooms: 4
Baths: 2
Occupancy: vacant
Sq Footage: 2782
Year Built: 1950
Acres: 0.39
Water: public
Sewer: public

Located in Henderson, NC this single family house is ready for a face lift. The property needs some exterior and interior updating. Good bones. See pictures for more details.

Pictures:  http://raleigh.craigslist.org/reo/5720003504.html

Repairs/Updates needed: paint, carpet, interior cosmetic updating, siding repair, yard clean up, etc

Contact me to view my house at (215) 315-3839

If you are a real estate investor looking to buy, fix, and re-sell this property then below is some analysis:

Purchase Price: $ 24,000
Total Estimated Repairs: $ 35,000
Reinstatement Costs: $0
Transfer Tax: $ 48
Closing Costs: $ 480
Buyer's initial investment: $ 59,528

After Repaired Value: $ 110,000
Buyer's initial investment: $59,528
Selling Costs: $ 6,600
Transfer Tax: $ 220
Closing Costs: $ 2,200
Your Anticipated Gross Profit: $41,452

*Overhead and Holding Costs NOT included since varies per investor

Comparable Sales
1009 County Home Rd $112,000 3/2 1805sqft | 262 Gholson Ave 4/3 4185sqft $149,000

Call me for Access:
215-315-3839 

for my other deals visit:  www.HouseDealsAmerica.com

@Don Harris Thanks. As per your first post...I have no problem offering my skills as a designer and tech guru in exchange for someone mentoring me in the real estate business. It's something that I feel is a fair exchange. I feel that we all have talents and abilities that others could use, so why do something for someone else if you want them to do something for you or help you out? It's a no-brainer to me.  :-)

Some of you have seen my posts on here and they are generally providing help to others. I'm not necessarily asking for help here, but any professional input and advice is certainly welcome. 

Last fall I began talks with an Atlanta, GA based company called Summit & Crowne Partners. Their owners, @Abhi Golhar and Walt Higgins were ecstatic to bring me on board and help facilitate the growth of a powerhouse company in charlotte that would encompass a Real Estate Brokerage which Abhi and I currently own together, a General Contracting firm, an Investment Firm, and a Project Management side for other investors. 

In December, Abhi and I started working towards opening the real estate firm in Charlotte, NC, Summit & Crowne Realty. This was realized shortly in to the new year and we hit the ground running. Shortly after this in February, I passed my General Contractors' exam. Abhi and I were both excited about the possibilities of me coming on board to take over some projects they were having trouble with; 5 in total. 

In March I started the construction of 2 spec build homes for Summit & Crowne Partners with a handshake and a verbal agreement that I could build both houses for $207,000 each and in 6 months time. They also had jump in and work on 3 remodels they had going; one in Providence Day area and 2 in Johnson C Smith University area. In the 3 months that followed that seemed like a blur considering how busy I was taking on all these projects at once, on top of my normal projects I already had going, we racked up spending amount in excess of $300,000! I had the 2 spec build homes framed and roughed in. We were ready for sheetrock when Walt, @Abhi Golhar's partner informed me that they had pissed of their investors and would essentially need to fire me. At this point they have an outstanding labor and material balance in excess of $20,000 which still hasn't been paid to date. they also have an outstanding GC fee almost equal to that which also has not been paid to date. So far for the $300,000 plus amount of work and material provided, I've been compensated a measly $10,000. I worked out a deal with Abhi and Walt early on which was a great deal for them. Instead of the projected $110,000 cost of hiring me at full  price for all projects, I decided to give them a deal of $70,000 for all projects. I've now saved them $40,000 and they are telling me they are over budget on all these houses. 2 or 3 of them, sure, they are because they had a project manager before me who apparently had free labor haha. Anyways, I've been nothing but gold for their company and i'm ahead of schedule and under budget on the 2 spec build homes I took over for them that carries a $7,500 monthly debt service EACH!!! 

I have now filed liens against all 5 of the properties that I was working on for them with the clerk of court in the name of the respective owner, Summit & Crowne Partners, LLC of Atlanta Georgia and Summit & Crowne Charlotte Reserve, LLC of Charlotte, North Carolina. My next step is to perfect the lien and file a lawsuit. I've already placed a retainer fee on deposit with my attorney in the amount of $1,000 after our $150 initial consult. She charges a whopping $200 per hour, so I'm hoping to avoid incurring any more expenses from her, but she is the necessary evil.

I guess I'm really writing this out of anger and distaste towards the folks who originally brought me in to their company with hopes and dreams as far as the eye could see. I planned on making $70,000 with this firm this year alone, so naturally I was turning down business left and right because I was so busy and didn't need/want any more income. Now I'm stuck with a $22,134.33 labor and material bill and lacking my $19,010.15 General Contractors fee based on my pay structure that again, was agreed with a handshake and a smile. Well, they did send emails confirming the pay structure, so I have that leg to stand on when we go to court. 

With any luck, this post will bring enough negative feedback for their company and we can avoid the lawsuit with a settlement (of full price of course), and I can go back to having my life back. 

In the mean time, does any one have a similar experience or any helpful hints for me as this is my first time being owed any amount of money, except for my grandma who passed away owing me $220...I guess I can write that off now :) 

@Steve Yoo As others have said, it is generally best to do a rehab project on something that has some occupancy. 0% occupancy is usually indicative of a larger issue - i.e. broken supply lines, major mold from leaks, etc. You can usually get a few to stay rented, even in the worst areas. I have done my share of apartment rehabs, but never less than 30% occupied, unless I'm looking at changing the usage - like going to condos as @Alex Franks said... then 0% occupancy is actually a plus. 

Hi everyone!
I looked at a 20 unit apartment building. Currently it is 100% vacant. The area is developing and I am assuming in a couple years the area will go up in value. The city is building a huge park, stadium and public transportation is with 2 miles.
The apartment is vacant because there are plumbing issues and not suitable for tenants to live in. The landlord is not making any money except paying expenses. He is asking 260k. Each unit will rent for approx $550-650/month. Renovation will be approx 200k.
I don't know how to value this property and if what the current owner is asking is worth it.
Any feedback would be very helpful. Thanks!
Steve

Alex I will take you up on the offer. Can we link up later on this month I would love to pick your brain. Thx, Ryan

Hi. Thanks everyone. I will be attending some meetups, joining a REIA and hopefully building relationships with some good people @kenyaTeagan @MichaelBowman

@AlexFranks People-wise: I'd like to build a treasure chest of "go-to" people who are ethical, team players who don't mind sharing their knowledge so we can make money in real estate together. Business-wise: I'm looking to purchase some SF and MF properties for passive long-term income and do some flipping and wholesaling where possible for more immediate cash for investing.

@TomasChao thank you for the name. I will certainly check Don out.

Thank you ALL for your input. 

What''s good BP? My name's Devon, born and raised in Seattle, currently living in Renton (20 minutes south).

Found the BP podcasts last week and knew I needed to jump right in, so here I am!

My plan was to pursue my interest in finance, get my MBA and become a CFA, until "ABOUT A WEEK AGO". As I learn more about real estate investing, it just becomes even clearer that it's what I want to do. The idea of meeting people, making friends, helping others out, taking risks, learning from your mistakes, sharing wisdom, being mentored, solving problems, all while building wealth for yourself and anyone who believes in what you're doing, I'm in.

I'm on the hunt for my first deal, looking to get multifamily that I can live in for free while work on next move. I do plan to get my broker's license ASAP but I'm not going to let that hold me back from taking action now. Hopefully by the end of the year I'll have something in contract and in the process of making my next deal happen. Sure it's ambitious but timing is everything, and you'll never know what your limit is until you press it.

I'm excited to be here and I look forward to sharing my first deal and every deal that follows with everyone. I can't wait to help others be successful along the way. Take care everyone.

-Devon