All Forum Posts by: Levi Bennett

I'm working on some development projects as a key partner. I know the people doing it. If you want to connect send me a PM

Hey man, I'm doing some development work in the area. Most "developers" in NC are not on Bigger Pockets. This site is usually for new investors, not experienced investors like developers. 

About 50 or so. Check meetup.com and Metrolina REIA

Investment Info:

Large multi-family (5+ units) wholesale investment in New Smyrna Beach.

Purchase price: $1,900,000
Cash invested: $10,000
Sale price: $2,100,000

A 2-month multi-family wholesale deal that allowed me to take $10,000 (of refundable money) and turn into nearly $200,000 in two months.

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

I knew that the demand for apartment and large multi-family deals was white hot, insane, hotter-than-the-sun and a small markup would go a lot further than wholesaling a SFH.

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

This seller contacted another wholesaler who refused multiple times to put the property under contract. He didn't believe the acquisition price was good enough "per door" (he was comparing it to SFH ratios) to make a profit.

After multiple attempts to get him to partner on the deal, because I knew I could find a buyer, he refused. So I decided to raise the deposit money and place my own contract on it.

How did you finance this deal?

Wholesaling doesn't require finance, but because it was a multi-million property, the deposit was sizable and I was able to raise the money by guaranteeing a low-risk investment. The raised money was 100% refundable to the investor.

How did you add value to the deal?

Two things:

1. Getting the word out. The main issue was that this property was far away from a metropolitan center and therefore flew under the radar. It was close enough to Orlando and the beach to get interest from investors, but not something that would normally stick out.

2. The property had some issues with the city and there were several city council meetings during the contract period. Attending council meetings to prolong the life of the contract was key.

What was the outcome?

Pretty great.
$200,000 gross profit before commissions were paid to assisting realtors who helped source high-profile cash investors.

Lessons learned? Challenges?

Too many to list, but the big two lessons were..

1. Sourcing my own buyers - Profit was cut into significantly by realtors who brought high-profile investors. I could've done this had I been ready.

2. Why the hell didn't I double close? - This was a costly mistake. Several buyers were willing to pay $2.2M-$2.4M, however, because this was an assignment, the revealing acquisition cost caused them to renegotiate. This cost me $100k-$300k in profit.

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

Yes I did. If you partner with the RIGHT realtor who is well connected to high-profile cash buyers, this can expedite the time it takes to source a buyer. These guys worked hard with me knowing they were getting a cut of the profit, but I don't recommend it if you can build your own list of high net-worth people looking to pay cash for properties like this.

Investment Info:

Single-family residence wholesale investment in Charlotte.

Purchase price: $155,000
Cash invested: $500
Sale price: $145,000

Available now!!

Average Days on Market (ADOM) for 3-4 bedrooms in this neighborhood (in last 90 days) is just 5 days!

Features:

3/2 with flex room (4th bedroom possible with frame out closet in large flex room)
Large open concept living/kitchen
New roof (architectural shingles, 2017)
A/C 7 years old (manufactured 2010)
Front and back wooden deck
Small neighborhood, 7 minutes to uptown
Across the street from Elementary School
Vaulted Ceilings
Original Hardwoods in living areas and hallways
Fenced in yard
Stainless steel range and dishwasher
WHAT IT NEEDS

Master bath remodel (there is a very accessibly crawl space, so this should be easy according to the contractors I've spoken with)
Reconditioning of hardwoods
New Carpet
Paint
Refrigerator
New interior doors
Minor landscaping (one tree removal)
ARV: $220,000
Repairs: $20,000
LIST: $175,000

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

This is area is transforming at break-neck speed, and this home is in a quiet neighborhood across from an elementary school. Sellers were motivated to move quickly and we were able to secure a price way below market for an easy assignment to a rehabber.

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

I knew the owners through a realtor introduction (who sold them the home to begin with).

How did you finance this deal?

We don't finance wholesales.

How did you add value to the deal?

By building a relationship with the property owners and doing our own inspections and contracting estimates.

What was the outcome?

Not great. Most investors we spoke with are beginners and did not see the value of the new HWY 74 completion. We ultimately sold it for way less than we anticipated and I was able to break even.

Lessons learned? Challenges?

We learned to get feedback investors who tend to like trendy areas rather than what we think is a good investment, or areas that haven't showed up on the collective radar yet. The end buyer did very well as we did not get a lot of showings, and they were able to make a massive profit despite the perceived risks.

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

Jan Teel from Teel Realty has an eye for investment real estate way before the trend reflects in the collective minds of most people. This allows us to identify properties with huge potential around planned and completed state infrastructure upgrades.

Sent you a PM

I'd love a lake norman multi-family meetup group. That's where I live. @Scott Morongell

People who are trying to tell you that the RE market is about to crash are definitely trying to buy from you.  

Hey guys, I'm a wholesaler in Charlotte, North Carolina. I have an opportunity to place two multi-family properties (one 6-plex, and one 4-plex) on one contract from the same owner. 

I had a few questions. 

1. Is there an obvious benefit placing two properties on one contract?

2. What is the process in doing that? Which contract do I use? Do I make my own or is there a good commercial contract for NC? 

3. What are some drawbacks that aren't so obvious with placing two properties on the same contract?

4. Suggestions, recommendations, or experiences are very welcome. 

Thank you!!

I don't know if anyone mentioned this or not, but if you OWN the properties, you do not need a license to manage them. But only if you own them, or have some equitable interest in them.