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Strategic RE Investments: Transforming Foreclosures - Charlotte, NC

  • Writer: Mitch Coles Real Estate
    Mitch Coles Real Estate
  • 2 days ago
  • 4 min read

Lawyer | Closer | RE Investor | Guardian ad Litem | Restaurant Owner


Prelim design of the upcoming duplex at 4630 Olney St, showcasing the vision for modern multi-family living in the Thomasboro-Hoskins neighborhood.
Prelim design of the upcoming duplex at 4630 Olney St, showcasing the vision for modern multi-family living in the Thomasboro-Hoskins neighborhood.

Welcome Back, Real Estate Enthusiasts!


We promised a hands-on approach, and here it is. We're excited to present our newest project, and a potential joint venture, transforming a foreclosed piece of land into a valuable multi-family property. This edition of our newsletter dives into the acquisition and initial steps of this promising project.


Map highlighting the prime location of 4630 Olney St, just under 4 miles from Uptown Charlotte, ensuring excellent connectivity and accessibility.
Map highlighting the prime location of 4630 Olney St, just under 4 miles from Uptown Charlotte, ensuring excellent connectivity and accessibility.

Project Overview:

Address: 4630 Olney St, Charlotte, NC 28208 Parcel ID: 06308460 

Land Area: 0.120 AC Neighborhood: Thomasboro-Hoskins


Investment Opportunity:

  • Purchase Price: $40,000

  • Total Investment: $245,000

  • Projected After Repair Value (ARV): $372,320

  • Projected Profit on Sale: $127,320

  • Rental Income Option: $3,800/month

  • Close of Escrow (COE): 


Foreclosure Purchase Investment Strategy

Foreclosure properties present unique opportunities for savvy investors. They are often available at prices significantly below market value, making them attractive for those seeking high returns. However, these properties come with their own set of challenges and require a strategic approach to unlock their full potential.

Benefits of Foreclosure Investments:


  1. Below Market Value Purchases: Foreclosure properties are typically sold at auction or through banks at prices lower than their market value, providing an excellent entry point for investors.

  2. High ROI Potential: Due to the lower purchase prices, these properties often offer substantial profit margins once rehabilitated and sold or rented out.

  3. Market Supply: Foreclosure properties are available in various markets, offering numerous opportunities for investment in different locations and property types.


Challenges of Foreclosure Investments:


  1. Legal and Title Issues: Foreclosure properties can come with complex legal and title issues that need to be resolved before proceeding with development.

  2. Property Condition: Many foreclosure properties may have been neglected and require significant repairs or renovations, increasing the initial investment costs.

  3. Competition: The attractive pricing of foreclosure properties often leads to high competition among investors, necessitating swift decision-making and action.


Our Strategic Approach:

1. Due Diligence:


  • Title Search: Conducting thorough title searches to uncover any liens, unpaid taxes, or other encumbrances on the property. (COMPLETE)

  • Property Inspection: Evaluating the property’s condition to assess the scope of repairs and renovations needed. (COMPLETE)


2. Correct Plat Issues:


  • Addressing any discrepancies or issues with the property’s plat to ensure clear and marketable title. (COMPLETE)


3. Rezone to N1-D:


  • Rezoning the property to maximize its development potential, aligning it with neighborhood zoning requirements and future growth plans. (IN PROGRESS)


4. Detailed Financial Analysis:


  • Performing a comprehensive financial analysis to project costs, ARV, and ROI, ensuring the investment meets our profitability criteria. (COMPLETE)


Addressing Potential Problems

Our current project at 4630 Olney St. is no exception. Acquired through a foreclosure sale, this property came with its share of parcel issues. Resolving these issues is critical to unlocking the property's full potential. By addressing and correcting these defects, we've paved the way for a seamless development process.


Project Acquisition and Initial Steps

We will dive deeper into foreclosure purchases in our next edition. Today, our focus is on the acquisition of this promising project. Here’s a brief outline of our strategy:


  1. Correct Plat Issues: Ensuring all legal and parcel discrepancies are resolved.

  2. Rezone to N1-D: This step will allow us to maximize the property's usage and value.

  3. Build a Two-Level Duplex: The development plan includes:


  • 1st Floor: 670 sq ft, 2 bedrooms, 1 bathroom

  • 2nd Floor: 690 sq ft, 2 bedrooms, 1 bathroom

  • Total Square Footage: 1,360 sq ft


Why This Project Stands Out


  • Prime Location: Less than 4 miles from Uptown Charlotte with excellent connectivity.

  • Neighborhood Potential: The Thomasboro-Hoskins area is on the rise, with increasing rental demand and property values.

  • Educational Excellence: Access to top public schools enhances the property's desirability.


Technical Analysis: ROI


  • Total Investment: $245,000

  • Projected ARV: $372,320

  • Projected Profit on Sale: $127,320


ROI Calculation:


  • Profit: $127,320

  • Initial Investment: $245,000

  • ROI (in dollars): $127,320

  • ROI (percentage): (Profit / Initial Investment)  100 = (127,320 / 245,000)  100 ≈ 51.95%


ROI Summary: Investing in this project offers a remarkable ROI of approximately 51.95%, making it an attractive and profitable venture. The high return combined with the strategic location and potential community impact makes this a compelling investment opportunity.


Community Contribution


1. Revitalizing Thomasboro-Hoskins Neighborhood:


  • Urban Renewal: Transforming a vacant lot into a modern duplex contributes to the overall aesthetic and functionality of the neighborhood.

  • Increased Property Values: Successful development projects boost surrounding property values, benefiting existing homeowners and attracting new investments.


2. Economic Stimulus:


  • Job Creation: The construction and ongoing maintenance of the property create job opportunities for local contractors, builders, and service providers.

  • Local Business Support: Increased population density supports local businesses, including retail, dining, and service industries, fostering a vibrant community economy.


3. Housing Availability:


  • Affordable Housing: Developing multi-family units increases the availability of affordable housing options, meeting the needs of diverse income groups.

  • Rental Demand: The area’s medium to high rental demand ensures that the property remains occupied, providing stable rental income and contributing to the neighborhood's economic stability.


4. Community Engagement:


  • Positive Impact: The project demonstrates a commitment to community development, promoting a sense of pride and ownership among residents.

  • Public School Support: With access to top public schools, families are more likely to settle in the area, ensuring a thriving educational environment and fostering long-term community growth.


Call to Action


If you are interested in being an investor in this project or doing a joint venture, reach out to us. This is a time-sensitive opportunity, and I value transparency. If you're not ready to move forward, please let me know so we can manage our time efficiently. Otherwise, sit back and watch us transform this lot into a two-story duplex over the next three months. 


Stay tuned for our next edition, where we will delve deeper into the intricacies of foreclosure purchases and how to navigate their challenges successfully.


UPDATE: We've already selected an investor for this feature deal! Stay tuned as we will discuss the progress in future newsletters and postings. Thank you for your continued interest and support!


 
 
 

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