- Over the last month, I’ve seen investors who had hit pause on finding new projects late last year begin to start spinning things up again. This tells me both consumers and investors are accepting these markets as our “new normal.”
- The most common problem I am seeing right now with projects is developers not hitting their desired ARVs. No matter the rate environment, it is key to have multiple exit strategies.
- One thought from a conversation last week: When a project is stuck in the mud, I want people to feel comfortable asking us for help. Often times we can make an introduction that may be able to push the project to the finish line.
Single-family detached home in Prince George County
PURCHASE: $172,000 (including assignment fee)
DEAL DETAILS: This client worked with a local wholesaler who was able to secure a property well under the as-is value, adding in instant equity upon purchase. In order to secure the deal and market it to other potential investors, our client needed to close within 5 days. After underwriting the potential value of the property and coming to an agreeable ARV, WCP agreed to make the closing date. The client is also a general contractor which allowed them to save costs on construction. The final project will open up the floor plan on the upper levels allowing for a larger feel within the home, but without increasing the square footage. The basement will also be fully finished and add 2 bedrooms bringing the final bed count to 5 bedrooms. This experienced client will be able to complete this project in 4 to 5 months and plans to sell with their long-time agent within 6 months.
Part of my role involves speaking with investors throughout the DMV to hear what they are seeing within the market. One of the things that I hear the most is that there are no deals out there that ‘make sense’ from wholesalers anymore. The above deal shows that with patience and the right networking, there is plenty of profit to still be made purchasing off-market deals from wholesalers. Investors need to be willing to put the work in to network themselves to get deal flow into their pipeline. As I mentioned in the quick insights above, people are beginning to be accepting of where we are in the cycle. With this acceptance, we have seen clients have greater deal flow than earlier in the year and sellers are more willing to listen to offers now. My prediction is that this momentum will continue through the rest of the year.
Are you ready to capitalize when the right deal comes across your plate?
I put these newsletters together to share the useful insights that I and my team uncover from all the deals we underwrite and the data we pour through daily. I figured, why not share it?
I would also love to have more conversations about the unique perspectives and insights that you may have. So check my schedule below, and let’s chat about our industry, our market, or whatever else comes to mind.
Sales Manager, WCP