Sean Wells

Turning Point Property Experts in Woodbridge, VA

Sean Wells with Soundjata Carty

This deal was our first deal. We found this particular deal through an online auction site. We had to think long and hard about pursuing this deal because the margins were slightly lower than the target profitability. With this being our first deal as a business, we ran the risk of uncovering something or making a mistake that could easily turn the thin margins into a loss. Additionally, the property was 3 hours away from our home base. After a lot of contemplation, we decided to pursue this bid. We were fortunate enough to be the win the bid in November 2018 but did not close on the deal until February 2019 due to complications with our hard money lender. My partner and I were very discouraged as we got to the final stages of approval and were denied. Fortunately, because of the relationship we made with our realtor, he was able to help us find another lender that helped us close with better terms. Prior to closing, we visited the house several times and completed an ARV rehab estimate. This particular house was unique in the design compared to the comps so it was hard to predict exactly what the market would dictate. We went with the most conservative estimate building in contingencies with a final profit of 12%. With both of us working full time, we were only able to work on this rehab Thursday evening through Sunday afternoon. From start to finish it took us 11 weeks to complete. We use FB’s SOW templates to hire a contractor and complete the work. During the course of the project, we brought in a family member who was a recent, unemployed college graduate to the team to act as a local runner. We had additional family members pitch in and help throughout various stages of the project. When working through this project, the biggest dilemma we ran into was to complete the property without central A/C and shoot for a lower ARV or to install a system that was out of budget but could significantly raise the final ARV. The challenge was that the walls were closed and needed little attention, thus requiring a lot of additional rework to install ducts. When looking at a ductless system, it was cheaper to install but had a negative connotation. After much research and talking with FB’s coach Michael Platania, we decided to install a ductless central A/C unit. Once the home was complete, we contacted our real estate agent and worked out the perfect day to list. We finished the week before Memorial Day, but he recommended we list after the holiday due to people traveling. He also recommended we list on a Thursday. He recommended we list at a moderate price that would drive traffic, but still allow us to make our margins. He knew the market well and was angling for a bidding war. After listing, within 4 days we had 3 offers. We accepted our final offer on the 6th day to market that was $20K over asking. We closed by the end of June.