Current Flip in Downtown Tucson
Off-market property that our team identified as distressed
By: Ben Riehle, CEO/Co-Founder Apex Real Estate Network
(Flip in Downtown Tucson) – The Apex Real Estate Network recently started a flip in a historical district of downtown Tucson for an out of state investor. We are going to do periodic status updates on this project and would love to hear from you. Leave a comment with your questions or thoughts. We are passionate about helping others learn how to build wealth through real estate, let us know if there is anything we can do to help you on your real estate journey. Now on to the project!
This was an off-market property that a birddog on our team identified as distressed. Within a week of making contact with the owner we were under contract. We then assigned the property to an out of state investment group that we have a close relationship with. (If interested I can go into more detail on how our system of tracking off market deals works but we basically have guys driving for dollars and identify distressed properties. From there the addresses are added into a CRM program and our caller reaches out to the owner via telephone, Facebook messenger, or mailers. We have teams driving for dollars every day in Tucson and Kansas City.)
A recent Downtown Investment (featured in video above,) is currently under contract by an investment group and Riehle due to increased growth in Southern Arizona.
Comprehensive estimate for the remodel
Once under contract Apex Development and Construction put together a comprehensive estimate for the remodel. At the same time The Apex Investment Team, lead by Jake Arnold, began running a financial analysis and market CMA. The numbers presented below are conservative and the net to the investor after all costs and fees applied to this project. We believe the projections to be conservative and on the low end of what is possible on this project.
One challenge on this deal is that the property is located in an area overseen by the Tucson historical society (THS). This historical committee must approve the key component of the remodel. As a result, we increased our remodel budget and timeline to account for possible unknowns. We have experience with the THS, most recently on a 5-Plex that we are renovating a block away from this property. (Word of advice for anyone doing a project in a historic area, make sure you consult with experts who understand what is necessary and possible with the historic committee. On our first project, we had multiple roadblocks that costs upwards of $10,000.)