Q: So, Why did you choose this property?
Virginia: "I chose this property because it was a landbank property, I'm familiar with that process, and there's a lot of redevelopment, and construction in that area. To me, that's a sign that people will be wanting to buy in that area soon."
Q: That's super smart. What made you chose your partners? What should our audience look for?
Virginia: "Honestly, I chose them because of their proximity and willingness work with my and to buy into my vision of revitalizing this neighborhood. It's a large undertaking and less confident investors might have been scared.
If I could do it again, here's what I would do differently. We all have the same goals, but do we all have access to capital. When I say capital, I do mean monetary, but also labor capital, and social capital.
Like, do they have resources? I didn't ask those questions, or fully vet them to see it. It's important to find people with similar dreams and interests, but when you're new, it's more important that the people you're choosing to be your partners can make that dream a reality.
Honestly experience counts as a resource too. If you have money, but no experience, even in a group you can end up running in circles. However, if you or a partner has experience getting that deal done, getting that over the line, it's a different story.
Q: What obstacles have you faced?
Virginia: We're overcoming the financing obstacle. The building needs more rehab than it's worth. The building is needs upwards of 100k, 150k. Buildings in that area haven't really appraised that well.
Also, leadership splits. Two, three, or more people come together and everybody thinks their way is the right way, without a fully vetted plan, it can delay a project.
It's very important to wrap these projects up as quickly as possible, using the best materials within budget to get into the investor game. That's when you can really get into that community development conversation.
Q: What will you gain from this project?
Virginia: Ok, so I was not familiar with construction AT ALL when we started this.
But now I'm super excited about how much I'm learning about the construction side of real estate, you see the money more clearly. From managing a rehab project, and and putting together your capital stack. I've learned so much, and have become even more familiar with the terms, costs of material, and just all around investor game.