What is cash flow?
Tuesday, November 17, 2015 mecktimes.com
{The Mecklenburg Times }
Foreclosure Facts
1
Investors’ Corner
What is cash flow?
BY LOU GIMBUTIS
Top sales The following are the top foreclosure sales, ranked by bid amount, in Mecklenburg County. Owner The Lending Source Inc. Address N/A Sale date Nov. 10 Highest Bidder N/A Bid Amount $236,250 Owner Donna M. Green Address 2124 Dunnwood Hills Drive, Matthews Sale date Nov. 10 Highest Bidder Tina Nguyen Bid Amount $228,407 Owner Alexis Sockwell Address 1101 W. 1st St. Apartment 404, Charlotte Sale date Nov. 10 Highest Bidder Bank of America Bid Amount $166,917 Owner Address Sale date Highest Bidder Bid Amount
James C. Harrison-Lamptey 7152 Haines Mill Road, Charlotte Nov. 10 Nationstar Mortgage LLC $146,300
Owner Kendar M. Miller and Scott Shaffer Address 9511 Smooth Path Drive, Charlotte Sale date Nov. 10 Highest Bidder Wilmington Savings Fund Society Bid Amount $143,000
Top upcoming sales The following are the top upcoming foreclosure sales, ranked by mortgage amount, in Mecklenburg County.
On the surface, that is a very simple question. However, the inability to accurately calculate a property’s net positive or negative cash flow probably drives more uneducated landlords out of the business than any other single factor. Hence, a more detailed explanation is warranted. Put simply, cash flow is the number, positive or negative, that is left after subtracting all expenses associated with a property from the total income generated by the property. On the surface, it may look something like this: My total mortgage payment is $800, I rent the house for $850, I therefore have a net positive cash flow of $50 per month. That math, my friend, will prove very costly in the long run, and is likely to end with your appearance in federal Bankruptcy Court. The primary error here is that your mortgage, taxes, and insurance are not your only expenses; far from it. Here are the most commonly overlooked expenses: ■■ Vacancy: Your property is not going to be occupied 12 months per year, every year. I cannot give you a magic number or percentage to plug in here, as vacancy rate varies with desirability of the property’s location and of the property itself; your effectiveness at retaining good tenants and filling vacancies; and good old-fashioned chance. Once the property goes vacant, you will also incur costs in
Address: 15712 Corsair Court, Charlotte Mortgage: N/A Sale Date: Nov. 19 Sale Time: 2 p.m.
Lou Gimbutis is director of education at the Metrolina Real Estate Investors Association, which provides education, mentoring and networking for real estate investing in the Charlotte region. He can be contacted at [email protected]. For information, visit www.MetrolinaREIA.org.
What: A Chalet-style home with four bedrooms and four bathrooms on 19.2 acres of land. Address: 1491 Canter Lane, York SC Home’s square footage: 3,335 Price per square foot: $299.85
Address: 12015 Overlook Mountain Drive, Charlotte Mortgage: N/A Sale Date: Nov. 19 Sale Time: 2 p.m. Address: 6827 Sweetfield Drive, Huntersville Mortgage: N/A Sale Date: Nov. 19 Sale Time: 2 p.m.
look fresh once again, etc. But let’s say the furnace goes bad and costs $3,000 to replace. How many months of your “$50 positive cash flow” did that just eat up? All of these items are far better calculated pre-purchase rather than post-purchase.
What You Can Buy For ... $1, 000,000
Address: 4380 Enchantment Cove Lane, Charlotte Mortgage: N/A Sale Date: Nov. 19 Sale Time: 2 p.m.
advertising for a new tenant. This is without even considering the occasional tenant that will sit in your house for months without paying, forcing you to evict them, thus incurring additional legal costs. ■■ Repairs: Again, there is no hard and fast number. In general, the older the house is, the more frequently repairs will need to be done, and the more they will cost. Under this category, you must also include damage done by tenants that must be fixed after they move out, in order to attract a quality replacement tenant. Ruined carpet, stolen appliances, walls so dirty that only paint will make them
Listing Agent: Karen Lloyd of Keller Williams Fort Mill *Data and photo copyright 2015 Carolina Multiple Listing Service
Mortgage Meter (30-year fixed, zero points)
CHARLOTTE APR
U.S. AVERAGE RATE
3.87-4.28% 4.11%
(As of Friday afternoon) Source: from bankrate.com
2
Tuesday, November 17, 2015 mecktimes.com
Constructive Data
{The Mecklenburg Times }
CURRENT 12-MONTH PERIOD
Constructive Data compares Mecklenburg County building permit information on a rolling-12-month basis.
19,779 Value $3.32 billion
s
PREVIOUS 12-MONTH PERIOD
9.9%
17,985 Value $3.07 billion
s
8.1%
ConstructionCentral
Top building permits awarded by Mecklenburg County from Nov. 9 to Friday Address 2520 South Blvd., Charlotte 738 S. Trade St., Matthews 8757 Red Oak Blvd., Charlotte 5815 Highland Shoppes Drive, Charlotte 301 S. Tryon St. Unit 3000, Charlotte 15921 Sunset Drive, Huntersville 3320 Smith Point Court, Charlotte 3316 Smith Point Court, Charlotte 3308 Smith Point Court, Charlotte 3304 Smith Point Court, Charlotte 20411 Bethelwood Lane, Cornelius 2268 Rock Creek Drive, Charlotte 3016 Prosperity Church Road, Unit B, Charlotte 310 Mcalway Road, Charlotte 1012 N. Sharon Amity Road, Charlotte 9628 Andres Duany Dr., Huntersville 911 Naples Drive, Davidson 8621 McCullough Club Drive, Pineville 7809 Greenfield Drive, Charlotte 2312 Cloister Drive, Charlotte 5729 Selkirkshire Road,Charlotte 7211 Agnew Drive, Charlotte 1500 Matthews Township Pkwy., Matthews 7823 Pope Farm Road, Charlotte 509 Patterson St., Charlotte 11921 Meetinghouse Drive, Cornelius 12206 Copper Way Unit 124, Charlotte 12629 Short Lane, Pineville 5100 Sharon Road Unit 104A, Charlotte 19435 Greentree Way, Cornelius 7512 Melstrand Way, Charlotte 11925 Meetinghouse Drive, Cornelius 11615 Founders Park Lane, Pineville 9713 Paper Tree Road, Charlotte 4710 Opus Lane, Charlotte 3809 Alexander Forest Drive, Charlotte 3719 Alexander Forest Drive, Charlotte 4714 Opus Lane, Charlotte 4702 Opus Lane, Charlotte 2508 Alyssa Lane, Charlotte 5025 W. W. T. Harris Blvd., Charlotte 125 Watkins St., Huntersville 226 Mcalway Road, Charlotte 3821 Alexander Forest Drive, Charlotte 5302 Swearngan Road,Charlotte 3727 Alexander Forest Drive, Charlotte 5825 Copperleaf Commons Court, Charlotte 301 Cooper Drive, Charlotte 3241 Selwyn Ave., Charlotte 1834 Matthews Township Pkwy Unit 200, Matthews
Construction cost
Permit type
$10.8 million $4.7 million $1.3 million $727,441 $590,000 $482,852 $383,605 $383,605 $383,605 $383,605 $279,880 $277,532 $273,300 $221,342 $215,070 $214,170 $205,680 $203,122 $192,328 $188,200 $178,706 $174,842 $170,000 $153,112 $134,000 $124,832 $124,600 $124,011 $123,000 $122,636 $118,229 $117,986 $117,691 $114,793 $113,204 $105,802 $105,802 $103,110 $103,110 $102,168 $102,000 $99,800 $97,000 $96,041 $86,342 $86,342 $86,200 $75,000 $74,000 $71,000
Commercial Commercial Commercial Commercial Commercial One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family Commercial One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family Commercial One/Two Family One/Two Family One/Two Family Commercial One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family Commercial One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family Commercial
Project description
Owner/Tenant
Contractor
Solis Southline Southline Apartments, LLC Brasfield & Gorrie LLC Village at Plantation Estates - Apartments Acts Retirement Life Communities Edifice Inc. Imagine Software Interior Imagine Software Tyler 2 Construction Inc. Highland Creek Retail Highland Creek Retail LLC Doerre Construction Co. LLC Wells Fargo 30th Floor Renovation Wells Fargo Bank Balfour Beatty Construction LLC Home Renovation and Addition Elizabeth Janak Elizabeth Janak Ep020 Copper Builders Copper Builders Inc. Ep021 Copper Builders Copper Builders Inc. Ep023 Copper Builders Copper Builders Inc. Ep024 Copper Builders Copper Builders Inc. Douglas House The Southlake Co. LLC The Southlake Co. LLC Songwood Estates James Custom Homes Inc. James Custom Homes Inc. Orange Theory Fitness Kelli Narveson Kodiak Constructors Inc. Mcalway Knotts Builders Knotts Builders New Residence Classica Homes Classica Homes Vermillion Lot 200 AV Homes Carolinas AVH Carolinas LLC Davidson Bay Davidson Bay Developement Ridgemont Construction LLC New Residence Sheryl Kolby John Wieland Homes and Neighborhoods Meadowview Acres James Custom Homes Inc. James Custom Homes Inc. Plan Revision. Kyle and Dana Freeman Jones & Hedges Village of Selkirk NVR Inc. NVR Inc. (South) New Residence Lennar Carolinas LLC Lennar Carolinas LLC NH Matthews Medical Center Women`s Center Randy Bivens Rodgers Builders Inc. New Residence Live Well Homes LLC Live Well Homes LLC 509 Patterson St. Raul Cruz Goodwin Construction & Design New Residence South Creek Homes South Creek Construction Inc. Growler USA Streets of Toringdon LLC Talon-USA Inc. New Residence JW Homes LLC John Wieland Homes and Neighborhoods Plan Revision Presbyterian Home at Charlotte dba Sharon Towers Ross Allen Custom Builders Inc. The Courtyards at Jetton Epcon Communities NC LLC Epcon Communities NC LLC New Residence Wade Jurney Homes Inc. Wade Jurney Homes Inc. Lot 108 South Creek Homes South Creek Construction Inc. New Residence JW Homes LLC John Wieland Homes and Neighborhoods New Home Construction Pulte Home Corp. Pulte Home Corp. New Home LGI Homes LGI Homes-NC LLC Single Family Residence D.R. Horton Regent LLC D.R Horton Regent LLC Single Family Residence D.R. Horton Regent LLC D.R Horton Regent LLC New Home LGI Homes LGI Homes-NC LLC New Home LGI Homes LGI Homes-NC LLC Bryant Park NVR Inc. NVR Inc. (South) RTS Leasing Hazardous Rooms Addition NBC NC LLC D.R. Schwieman Inc. Plan Revision Cheryl Ginn Kathon Enterprises Inc. Plan Revision P.J. and Elisa Fronapfel Banister Homes Inc. New Residence D.R. Horton Regent LLC D.R Horton Regent LLC New Residence D.R. Horton Regent LLC D.R Horton Regent LLC New Residence D.R. Horton Regent LLC D.R Horton Regent LLC Green/Zamor Basement Philippe Zamor and Kiya Green Paul Kowalski Builders LLC 301 Cooper Drive Renovation/Addition John E. Galarde John E. Galarde Selwyn Addition Hindsight Realty Homes by G.R. Preslar LLC Suite 200 Landlord Sow Independence Parkway Properties Encompass Building Group Inc.
{The Mecklenburg Times }
Foreclosure Facts
1
Investors’ Corner
What is cash flow?
BY LOU GIMBUTIS
Top sales The following are the top foreclosure sales, ranked by bid amount, in Mecklenburg County. Owner The Lending Source Inc. Address N/A Sale date Nov. 10 Highest Bidder N/A Bid Amount $236,250 Owner Donna M. Green Address 2124 Dunnwood Hills Drive, Matthews Sale date Nov. 10 Highest Bidder Tina Nguyen Bid Amount $228,407 Owner Alexis Sockwell Address 1101 W. 1st St. Apartment 404, Charlotte Sale date Nov. 10 Highest Bidder Bank of America Bid Amount $166,917 Owner Address Sale date Highest Bidder Bid Amount
James C. Harrison-Lamptey 7152 Haines Mill Road, Charlotte Nov. 10 Nationstar Mortgage LLC $146,300
Owner Kendar M. Miller and Scott Shaffer Address 9511 Smooth Path Drive, Charlotte Sale date Nov. 10 Highest Bidder Wilmington Savings Fund Society Bid Amount $143,000
Top upcoming sales The following are the top upcoming foreclosure sales, ranked by mortgage amount, in Mecklenburg County.
On the surface, that is a very simple question. However, the inability to accurately calculate a property’s net positive or negative cash flow probably drives more uneducated landlords out of the business than any other single factor. Hence, a more detailed explanation is warranted. Put simply, cash flow is the number, positive or negative, that is left after subtracting all expenses associated with a property from the total income generated by the property. On the surface, it may look something like this: My total mortgage payment is $800, I rent the house for $850, I therefore have a net positive cash flow of $50 per month. That math, my friend, will prove very costly in the long run, and is likely to end with your appearance in federal Bankruptcy Court. The primary error here is that your mortgage, taxes, and insurance are not your only expenses; far from it. Here are the most commonly overlooked expenses: ■■ Vacancy: Your property is not going to be occupied 12 months per year, every year. I cannot give you a magic number or percentage to plug in here, as vacancy rate varies with desirability of the property’s location and of the property itself; your effectiveness at retaining good tenants and filling vacancies; and good old-fashioned chance. Once the property goes vacant, you will also incur costs in
Address: 15712 Corsair Court, Charlotte Mortgage: N/A Sale Date: Nov. 19 Sale Time: 2 p.m.
Lou Gimbutis is director of education at the Metrolina Real Estate Investors Association, which provides education, mentoring and networking for real estate investing in the Charlotte region. He can be contacted at [email protected]. For information, visit www.MetrolinaREIA.org.
What: A Chalet-style home with four bedrooms and four bathrooms on 19.2 acres of land. Address: 1491 Canter Lane, York SC Home’s square footage: 3,335 Price per square foot: $299.85
Address: 12015 Overlook Mountain Drive, Charlotte Mortgage: N/A Sale Date: Nov. 19 Sale Time: 2 p.m. Address: 6827 Sweetfield Drive, Huntersville Mortgage: N/A Sale Date: Nov. 19 Sale Time: 2 p.m.
look fresh once again, etc. But let’s say the furnace goes bad and costs $3,000 to replace. How many months of your “$50 positive cash flow” did that just eat up? All of these items are far better calculated pre-purchase rather than post-purchase.
What You Can Buy For ... $1, 000,000
Address: 4380 Enchantment Cove Lane, Charlotte Mortgage: N/A Sale Date: Nov. 19 Sale Time: 2 p.m.
advertising for a new tenant. This is without even considering the occasional tenant that will sit in your house for months without paying, forcing you to evict them, thus incurring additional legal costs. ■■ Repairs: Again, there is no hard and fast number. In general, the older the house is, the more frequently repairs will need to be done, and the more they will cost. Under this category, you must also include damage done by tenants that must be fixed after they move out, in order to attract a quality replacement tenant. Ruined carpet, stolen appliances, walls so dirty that only paint will make them
Listing Agent: Karen Lloyd of Keller Williams Fort Mill *Data and photo copyright 2015 Carolina Multiple Listing Service
Mortgage Meter (30-year fixed, zero points)
CHARLOTTE APR
U.S. AVERAGE RATE
3.87-4.28% 4.11%
(As of Friday afternoon) Source: from bankrate.com
2
Tuesday, November 17, 2015 mecktimes.com
Constructive Data
{The Mecklenburg Times }
CURRENT 12-MONTH PERIOD
Constructive Data compares Mecklenburg County building permit information on a rolling-12-month basis.
19,779 Value $3.32 billion
s
PREVIOUS 12-MONTH PERIOD
9.9%
17,985 Value $3.07 billion
s
8.1%
ConstructionCentral
Top building permits awarded by Mecklenburg County from Nov. 9 to Friday Address 2520 South Blvd., Charlotte 738 S. Trade St., Matthews 8757 Red Oak Blvd., Charlotte 5815 Highland Shoppes Drive, Charlotte 301 S. Tryon St. Unit 3000, Charlotte 15921 Sunset Drive, Huntersville 3320 Smith Point Court, Charlotte 3316 Smith Point Court, Charlotte 3308 Smith Point Court, Charlotte 3304 Smith Point Court, Charlotte 20411 Bethelwood Lane, Cornelius 2268 Rock Creek Drive, Charlotte 3016 Prosperity Church Road, Unit B, Charlotte 310 Mcalway Road, Charlotte 1012 N. Sharon Amity Road, Charlotte 9628 Andres Duany Dr., Huntersville 911 Naples Drive, Davidson 8621 McCullough Club Drive, Pineville 7809 Greenfield Drive, Charlotte 2312 Cloister Drive, Charlotte 5729 Selkirkshire Road,Charlotte 7211 Agnew Drive, Charlotte 1500 Matthews Township Pkwy., Matthews 7823 Pope Farm Road, Charlotte 509 Patterson St., Charlotte 11921 Meetinghouse Drive, Cornelius 12206 Copper Way Unit 124, Charlotte 12629 Short Lane, Pineville 5100 Sharon Road Unit 104A, Charlotte 19435 Greentree Way, Cornelius 7512 Melstrand Way, Charlotte 11925 Meetinghouse Drive, Cornelius 11615 Founders Park Lane, Pineville 9713 Paper Tree Road, Charlotte 4710 Opus Lane, Charlotte 3809 Alexander Forest Drive, Charlotte 3719 Alexander Forest Drive, Charlotte 4714 Opus Lane, Charlotte 4702 Opus Lane, Charlotte 2508 Alyssa Lane, Charlotte 5025 W. W. T. Harris Blvd., Charlotte 125 Watkins St., Huntersville 226 Mcalway Road, Charlotte 3821 Alexander Forest Drive, Charlotte 5302 Swearngan Road,Charlotte 3727 Alexander Forest Drive, Charlotte 5825 Copperleaf Commons Court, Charlotte 301 Cooper Drive, Charlotte 3241 Selwyn Ave., Charlotte 1834 Matthews Township Pkwy Unit 200, Matthews
Construction cost
Permit type
$10.8 million $4.7 million $1.3 million $727,441 $590,000 $482,852 $383,605 $383,605 $383,605 $383,605 $279,880 $277,532 $273,300 $221,342 $215,070 $214,170 $205,680 $203,122 $192,328 $188,200 $178,706 $174,842 $170,000 $153,112 $134,000 $124,832 $124,600 $124,011 $123,000 $122,636 $118,229 $117,986 $117,691 $114,793 $113,204 $105,802 $105,802 $103,110 $103,110 $102,168 $102,000 $99,800 $97,000 $96,041 $86,342 $86,342 $86,200 $75,000 $74,000 $71,000
Commercial Commercial Commercial Commercial Commercial One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family Commercial One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family Commercial One/Two Family One/Two Family One/Two Family Commercial One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family Commercial One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family One/Two Family Commercial
Project description
Owner/Tenant
Contractor
Solis Southline Southline Apartments, LLC Brasfield & Gorrie LLC Village at Plantation Estates - Apartments Acts Retirement Life Communities Edifice Inc. Imagine Software Interior Imagine Software Tyler 2 Construction Inc. Highland Creek Retail Highland Creek Retail LLC Doerre Construction Co. LLC Wells Fargo 30th Floor Renovation Wells Fargo Bank Balfour Beatty Construction LLC Home Renovation and Addition Elizabeth Janak Elizabeth Janak Ep020 Copper Builders Copper Builders Inc. Ep021 Copper Builders Copper Builders Inc. Ep023 Copper Builders Copper Builders Inc. Ep024 Copper Builders Copper Builders Inc. Douglas House The Southlake Co. LLC The Southlake Co. LLC Songwood Estates James Custom Homes Inc. James Custom Homes Inc. Orange Theory Fitness Kelli Narveson Kodiak Constructors Inc. Mcalway Knotts Builders Knotts Builders New Residence Classica Homes Classica Homes Vermillion Lot 200 AV Homes Carolinas AVH Carolinas LLC Davidson Bay Davidson Bay Developement Ridgemont Construction LLC New Residence Sheryl Kolby John Wieland Homes and Neighborhoods Meadowview Acres James Custom Homes Inc. James Custom Homes Inc. Plan Revision. Kyle and Dana Freeman Jones & Hedges Village of Selkirk NVR Inc. NVR Inc. (South) New Residence Lennar Carolinas LLC Lennar Carolinas LLC NH Matthews Medical Center Women`s Center Randy Bivens Rodgers Builders Inc. New Residence Live Well Homes LLC Live Well Homes LLC 509 Patterson St. Raul Cruz Goodwin Construction & Design New Residence South Creek Homes South Creek Construction Inc. Growler USA Streets of Toringdon LLC Talon-USA Inc. New Residence JW Homes LLC John Wieland Homes and Neighborhoods Plan Revision Presbyterian Home at Charlotte dba Sharon Towers Ross Allen Custom Builders Inc. The Courtyards at Jetton Epcon Communities NC LLC Epcon Communities NC LLC New Residence Wade Jurney Homes Inc. Wade Jurney Homes Inc. Lot 108 South Creek Homes South Creek Construction Inc. New Residence JW Homes LLC John Wieland Homes and Neighborhoods New Home Construction Pulte Home Corp. Pulte Home Corp. New Home LGI Homes LGI Homes-NC LLC Single Family Residence D.R. Horton Regent LLC D.R Horton Regent LLC Single Family Residence D.R. Horton Regent LLC D.R Horton Regent LLC New Home LGI Homes LGI Homes-NC LLC New Home LGI Homes LGI Homes-NC LLC Bryant Park NVR Inc. NVR Inc. (South) RTS Leasing Hazardous Rooms Addition NBC NC LLC D.R. Schwieman Inc. Plan Revision Cheryl Ginn Kathon Enterprises Inc. Plan Revision P.J. and Elisa Fronapfel Banister Homes Inc. New Residence D.R. Horton Regent LLC D.R Horton Regent LLC New Residence D.R. Horton Regent LLC D.R Horton Regent LLC New Residence D.R. Horton Regent LLC D.R Horton Regent LLC Green/Zamor Basement Philippe Zamor and Kiya Green Paul Kowalski Builders LLC 301 Cooper Drive Renovation/Addition John E. Galarde John E. Galarde Selwyn Addition Hindsight Realty Homes by G.R. Preslar LLC Suite 200 Landlord Sow Independence Parkway Properties Encompass Building Group Inc.
