The key to winning is consistency in the face of less than ideal situations. Today, while traveling to Denver on unrelated business, we won another property (at 30,000 feet in the air) and, once again, it is in Cary, NC.
It is never over until the fat check sings, so we will come back to you soon with an update. The closing process can be tenuous. A good agent(s) -like the ones we work with -can make the process easier. None-the-less, the win is no guarantee of a successful closing or rehab or subsequent sale.
Cary will hit the market today or tomorrow. With comps ranging from 130s on the low side to 170s on the high side, our guy feels that our totally upgraded (granite, stainless appliances, bamboo flooring, new carpet, new windows, new cabinets, new, new, new...) will list right around 156k. Stay tuned!
We were out of country until yesterday and received very good news while we were on our trip: Bessie had an offer (which we signed today) and is now under contract. Closing is set for October 31st. A lot can happen between now and then, however, once it does close, it will be a nice treat on a neat little trick of taking the sad and neglected and turning it into a Box Bend Home.
From listing to offer was a little over two weeks. This is a testament to the nice work that our contractor and our Realtor put together.
For those in the inner circle of the crew, the P and L pages have been updated. If you would like to be on this list, just send your name and address to this address: firstname.lastname@example.org
Have a great week, everyone.
The Box Bend team is heading out for a week... first to London and then Paris. But before we head out to that highway in the sky, here are some before and after photos of State Street.
These were sent today by a new handyman that our main handyman used to complete the Clark Gable Assignment. (The jokes are bad, but they are free.)
The low headroom of the original porch was kind of a downer. So, we asked for a small gable to keep the various melons of prospective buyers in one piece.
We also had a very iffy condition happening on the underside of that porch. So... we had the handyman's handyman cover it with some 1 x stock. Once painted, this will look great!
We are beginning to wonder if we want to sell this bad boy or keep it as a Box Bend office. Just kidding.
We always want to sell if the price is right.
See you in a week.
Building a brand in this arena may require that a company becomes more than just a provider of reasonably remodeled or rehab homes. It may also require that the company becomes a solution provider. That is the idea behind our alliance with Movement Mortgage. Movement is one of those rare companies in the real estate world that gets it right. They usually can close in seven to eight days, and this fastness is really their claim to fame. Click on the link above to go to our friend Pat's page. He can help anyone looking for a mortgage in short order. Think of how this could benefit a potential home buyer. Think about how this could be conveyed to the Realtor(s) for a particular property.
"Want to offer a great mortgage company to your clients that can close fast, Mr. or Mrs. Realtor? We suggest Movement."
For those looking to get into the rehab business, Movement also offers 203 (K) loans. Keep in mind that we utilize a strategy of zero debt when rehabbing, but we realize that many others prefer to use OPM (other people's money). So be it. Movement would be our choice if we were looking for a loan. For us, though, it is more about building that brand, offering those solutions, showing potential home buyers that we are aligned with name brands, and are not fly-by-night operators. Moreover, we want to sell Box Bend homes. Movement can help us do that with the average consumer who carries debt -especially on a home.
So, what do you, the reader, think? Have you heard of Movement before? Does this sound like a great solution to fast closings? Remember, time actually is money in this business. Please leave your comments below, and let us know what you think.
Happy Wednesday! Last night we found out that we picked up a little house in Angier, NC. More on that in a minute.
Today, one of our Realtors informed us that a more expensive home that we have been watching is indeed a "good deal" if we can get it under a certain price. This "whale" is a little tricky because it is what the industry calls Occupied Foreclosed. In short, this means that if we do buy the house, we might have to go down the eviction highway. This also means that the risk goes up. However, so does potential reward.
In this case, greater reward does not necessarily mean higher immediate ROI. It could, but it also means (provided we get it ) that we ante up a bigger chunk and possibly get our return quicker (provided it is priced correctly) in shorter time.
Consider the typical rehab process: purchase, rehab, clean and market. Then repeat. Lesser priced properties mean that one goes back to the well more often VS once on a larger project. 20% on one hundred thousand in 120 days or 10% on two hundred thousand in 90 days? Which one is the better deal?
Of course, the risk is compounded on bigger whales. To mix metaphors into the realm of the more relevant ( from poker in the third paragraph) to fishing; would one prefer a sailfish, or would one like a whale? Different equipment, different rewards, and different fish.
Here's to Whale Hunting!
Now, concerning our little property in Angier, here it is:
What excites us about this one is that we got it well below the bank's reserve. We will caution that this doesn't necessarily mean that it will be profitable, but it sure helps.
Recall that our BATNA (Best Alternative to a Negotiated Agreement) is to rent if we can not sell at a profit. At the price we paid, and the cost of repairs, we are looking at an estimated annual return of around 12-13% -which is fairly respectable for properties that are in good shape. Of course, we would rather sell it and keep those dollars working while inflation is low to non-existent currently.
For more on this, see our strategy page. (Contact us for a password.)
Until next time, keep your oars in the water and your harpoon ready, Ahab.
Here's the listing on Rocky Mount.
Please give us your comments.
A few more shots before the new paint and windows go in at the Cary townhouse. The granite is finally in.
We will stop going all Brady Bunch Jan on this one for a while now, but hope that the photo updates have been enjoyable.
Here's a few photos from the Cary rehab. How can you tell when your contractor is awesome? Sloping floors fixed correctly.
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