Kristin Rashid Rehab Deal

 

Kristin Rashid Rehab Deal

LoCole Properties in Bloomfield Twp, MI
Kristin Rashid with Kristin Rashid, Chad Rashid, Vic VanMeerbeeck, Amy VanMeerbeeck

LoCole Properties closed on their first rehab project in May 2021 in Bloomfield, Michigan! We found the property on the MLS in the Spring of 2020, with the intention of a 3 month hold time and having it back up for sale right before the 2020-2021 school year started. Me (Kristin) and Amy both hold real estate licenses, however we did not use our agency to secure the property. We were able to make it a win for all parties involved by using the listing agent to represent both sides and purchased it for 20K under it's listed price. This was right at the start of the pandemic shut down, so the city offices of Bloomfield Township closed and the ability to secure our permits and inspections slowed down our process big time. We ended up putting a lot of our own sweat equity into this one, and even enjoyed getting to know the process a little bit being. Our 4 young boys helped as well- in the yard, clean up, using a hammer (while being closely supervised)! Between playing on the elementary school playground right across the street, and helping our new friend, Verle, who lived right next door, they were gently forced to start understanding our business. When we bought and closed on this first project, these 4 also became piggy bank private moneylenders. ;) We were OFTEN reminded that we were problem solvers throughout this first project, especially when the beautiful old oak tree in the front yard completely split in half. We ran into the back-up of materials and delayed deliveries, one of our contractors puncturing a pipe, and then the process of selling it. As a real estate agent since 2013, I've (Kristin) handled all sorts of transactions. I've never seen or experienced anything like our sale process with this one. It went active on the market, staged beautifully and within a week had multiple offers. We had a first time homebuyer get cold feet and back out even before the inspection. So we went back to the other offers... a new cash offer came in with a complete offer package including proof of funds. We work our way through the transaction and both sides close, but in escrow, because the funding wire hadn't arrived. We put a deadline in place for the funds to hit and they never came. So, unfortunately we find out too late that this buyer has his assets frozen due to charges filed against his law license for stealing his clients money...yikes. We were pretty discouraged at this point, but at the same time thankful that an individual like that wasn't going to be living next to our new friend, Verle. Our final buyers had lost out every time our project came back to the market and we were able to negotiate terms to FINALLY get this project closed, a year later. We all sat down and evaluated the wins and the lessons of this one. There are systems needing to be tweaked in our process and there was some over-improving that we now know to avoid to save some money in future projects, LoCole Properties is made up of two families, the Rashids and the VanMeerbeecks. Kristin 's experience starts with retail real estate and was a previous Team Leader for KW Ann Arbor. Chad owns Rashid Construction, a family company of 50+ years and runs the contractor lane of the business. Vic is our finance guru and aids our company with lending relationships. Amy is also a licensed realtor and takes primary charge of the SOW based on the project market.

Rehab Details

Property City: Bloomfield Twp
Purchase Price: $362,500
Repair Costs $134,000
Holding Costs: $49,500
Sale Price: $605,000

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Case Study

How did the FortuneBuilders team and resources help you to accomplish this deal?

The coaching that we received throughout this deal was encouraging and made us reflect on the numerous lessons learned. We were reminded to not stress over what we can't control, as well as keep pushing to that end goal with focus on the solution, not the problem.




Before & After Photos