All Forum Posts by: Tim Garrett

I’m not opposed to creating a new mastermind group.  Does anyone on this thread have multifamily experience?

Is anyone aware of a mastermind group focused on multifamily or commercial real estate in eastern NC? I'm an experienced investor and looking to grow! I need some new people in my circle to learn from and/or work with.

I agree with your observation.  I looked at Jacksonville a couple of years ago but at the time the base housing was overbuilt and opened to the public which lowered rent rates.  I’ve just not looked back into it.  I’d love to know what your experience is and what rent you get from the house.  You can definitely buy some good deals down there.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $30,000
Cash invested: $46,600

I purchased this property six months after hurricane Florence. The property never flooded prior to that hurricane and I was able to include the vacant lot next door in my purchase. It was on the MLS but our market was full of flooded home inventory so this one sat. 1,600 SF 3/2, this has been an easy home to rent out.

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

The property worked both as a rental or a flip. I prefer value levels that allow both strategies to work if the market softens.

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

It was on the MLS, there wasn't much strategy other than making an offer with a quick closing.

How did you finance this deal?

Cash

How did you add value to the deal?

Major cosmetic repairs and upgrades.

What was the outcome?

Home is currently rented for $1,100 monthly. Estimated value of $130k and total cost of $76k.

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

Jason Sanderson at Keller Williams was my buyer’s agent and is also my leasing agent.

Great video.  I’m interested in learning more about getting involved with apartment syndication opportunities.

Investment Info:

Office Space buy & hold investment in New Bern.

Purchase price: $89,000
Cash invested: $66,000

2900 SF building on half acre lot located on third busiest road in New Bern. This building was a successful insurance office for many many years and was inherited by the previous owner’s children. It was obvious the owners were motivated to sell it.

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

I always look for deep value opportunities and this fit the bill. It was my first move into a commercial property and it was in a price range close to my single family home investments which gave me an increased comfort level with pulling the trigger.

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

It was on the MLS. I made a lowball offer to see what the response was. When I didn't get laughed away from the negotiation, I knew I had a deal.

How did you finance this deal?

10 year commercial note with a fixed rate. I actually pledged another property that was free and clear to borrow additional cash for the rehab.

How did you add value to the deal?

Major cosmetic upgrades along with a new HVAC and roof. The building was already set up as individual offices and fit into my vision for the property. I felt that the building was a good opportunity to create individually leased offices at an all inclusive price for small businesses just starting out or individuals that just need a professional space to collaborate or meet clients.

What was the outcome?

I closed on the property on 10/31/19. It took about five months to complete everything that needed to be done. I have 11 offices available for rent in the building and from 4/1/20 to today (6/23/20) I have leased 8 offices.

Lessons learned? Challenges?

Always expect surprises no matter what experience you have and never shy away from low offers when you know what your numbers have to be.

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

I worked with Jason Sanderson for the purchase and I currently work with Ross Beebe as the leasing agent. Both work for Keller Williams in New Bern and both do a fantastic job helping me find and manage property in the New Bern area. Ashley Capps at Select Bank helped with the financing and he is my primary lender at this point. His bank does a great job lending in the investment real estate space.

Some folks may disagree but I only purchase investment property when it will support itself as a rental. I strictly focus on cost and cash flow. The current economic climate has much more uncertainty today than it did three or four months ago but that doesn't mean a flip isn't in the cards. The risk is that the market turns quickly and your ARV assumptions are too rich and leave you with less profit than anticipated or even costing you to sell it. To Marlen's point, the property you're considering will make a difference in the answer to rent or flip.

I believe you made the right decision on the tiny home.  Fairfield Harbor has plenty of nice folks and a lot of homes have been rehabbed out there since Florence but you can’t fix the fact that it’s low and prone to flooding.  Builders are still building even with everything going on.  I’m in the process of selling a lot for a spec home now and another for a double wide.  Everyone has kind of taken a breath but so far everything is moving along.  Happy to help you connect with some builders.  Are you wanting to parter on a spec build or just sell the lots outright?

@Ben Kirchner

Reach out to me anytime, I’ve lived in New Bern sine 1996 and very familiar with the area. I’m curious what ended up happening with your building lots in the area. I started to do a tiny house deal and I think there is some opportunity but those numbers seem a little aggressive to me.