All Forum Posts by: Jack Clough

Roger Truemper with Baird, Mandalas & Brockstedt, or Bill Ward at Ward & Taylor The lawyer will outsource title search and prepare all that for closing. So all you need is the lawyer. Truemper will use Old Republic Title Co for example

Great story @Nicholas Wilson and congrats. Sounds like you're on the right path and well on your way. 

What I love about this business is that you don't really know where it might lead you. You can be focused in one direction on a deal and that may lead you to a better deal and/or a different sector within this industry. The learning curve is endless and there are always possibilities regardless of the economic environment. 

End unit row home in the Triangle neighborhood of Wilmington, DE. Needs extensive repair but not a complete gut job. Has a driveway and large backyard with three garages. Estimate 70k rehab and ARV $230-250K

I have 6 duplexes under contract for 50k each. They are two units/homes per building. So 12 units total. Purchase is 300k Problem is that they need asbestos remediation. Quote is 40k for the first 4 buildings and 60k for the last two (they have it in the walls). Demo quote for all 6 buildings is 100k or we could do it for half that if we hired a bunch of laborers. Anyway when all buildings are done we’d be in it for 2 mil. Rents would be 1500-2k per unit. I’m estimating 220k sale price per unit, but if we wait until the rest of the development is built up then could be more like 250-300 per unit. It’s speculative, But I love what I believe the development will be eventually with a mix of old and new homes, a state park, and the water. I just can’t decide how much risk to take. How many partners? Tie up all my assets for 2 years? Stretch my Construction partner so much that he has no time for other projects? Bring in a 2nd construction partner? Walk away? I know it’s not a horrible problem to have but I also don’t want to turn it into a horrible problem. Would love to hear any advice especially if someone has had a similar situation.

@Tony McGraw

please share - I'm buying in DE

Happiness does not exist because of ones surroundings, ie. diversity, weather, restaurants... Happiness exists in freedom and the right to choose your own path. If people are leaving then that is their CHOICE. And god bless them and good luck to them.

@Chase Stephens, thank you for your service. Congrats on your success with the rental. If you PM me I'll send you a name of a lender in Rehoboth who specializes in real estate lending. You could probably qualify for a line of credit or construction loan. That would be cheaper than a HELOC as you'd only be paying interest.

correction: total rehab cost was 185k and purchase 40k. So total "all in" was 225k

Jack Clough Investor/ Licensed Agent from Wilmington, Delaware

My original post (part 1) is below. Here are the deets for part 2 and the after pics of the interior:

All work is complete and all units rented. 

In part 1 I had estimated that purchase and rehab would be 200k. Actual cost of purchase and rehab ended up at 225k. I had estimated gross rent at $4800, but actual rent is $4400.

Large 3 bed (estimate $1400), actual $1400

Small 3 bed (estimate $1300), actual $1200

2 bed (estimate $1200), actual $1000

1 bed (estimate $900) actual $800

Original Post for 1st Quadplex Newport, DE Part 1 below:

Jack Clough Investor/ Licensed Agent from Wilmington, Delaware

posted about 1 month ago

Last November, a partner and I purchased a quadplex in Newport, DE for 40k after negotiating directly with the owner who was way in over his head trying to rehab by himself (much more to that story...).

This was a complete gut job of 4500 sf. There are two 3/1 units, one 2/1 unit and one 1/1 unit. It was a very big job, but my partner's construction company has done all the work and we are 90% complete after 3 months. Hoping to have it fully rented by 4/1. Then we'll refi and do it again. And by the way I have a possible deal on 6 duplexes (12 units) and could use some hard money lenders.

Summary

Purchase = 40k

Rehab = 160k

Total = 200k

After

@Michael P. I've looked at a few properties on the auction sites and it seems like a totally annoying and frustrating process. The others are right about title and squatters etc..., but just getting the winning bid is super difficult. There is a ton of competition and the auction site usually sets a reserve price. If the winning bid doesn't reach the reserve price then they'll start the whole process over again. They can go through the auction many times and have incremental price reductions before it finally sells at a price that the bank is willing to accept.

Example: Take a look at 411 Lore Ave

https://www.auction.com/details/411-lore-ave-wilmi...

I've been watching this property on Auction.com for probably 2 years and it is still there. The price has been reduced but not by a lot. Also, I've driven by and it is definitely being lived in. The place probably needs 200k worth of work if renovated and the ARV would then be maybe 400k. Makes sense if you want to be an owner occupant, but not for an investor.

So, maybe the auction sites work for some, but personally I'd rather use other methods to find properties.