Meet Terreon: Norfolk Real Estate Investor
Terreon C. is a successful real estate investor in Norfolk, VA. He has several rehabs under his belt, and owns a growing portfolio of “buy-rehab-and-hold” rental properties. Although REI is still a secondary source of income for him, he’s on track to add more investors to his team and become a true real estate magnate of the area -- but how did he get started?
“I discovered real estate investing while helping my father collect rent from his tenants. When I found out the mortgages were paid off, I realized the properties were providing passive income for our family.”
Inspired by his father’s success, Terreon decided to leverage the stability of his day job at PepsiCo to purchase his first investment property. Sticking to a locality he knew well, Terreon found a duplex close to the high school that he attended. The property was in disrepair, but had significant rental potential and was priced to sell. Terreon made an offer of $60K, knowing he could use the tax refund from his day job to cover the down payment.
The high-potential property got several offers from other investors in town. When asked for his “best and final” offer, Terreon stuck to his initial amount -- but removed all contingencies. The strategy worked and he won ownership of his first investment property!
His excitement would be short lived. Terreon experienced many of the hardest parts of real estate investment right off the bat. Because he played it smart and had a significant cushion from his full time employment, he was able to pull through and complete the job -- but it wasn’t easy. He learned the hard way that contractors need to be paid by work completed, not by the week. He also learned that inspections are important, as he discovered systemic termite damage to the structure, including the siding on the home. In an effort to save the project, Terreon had to cash out some of his 401K and put in significant sweat equity to install the new roof.
Just when he thought the problems were over and the property was rented, the tenant defaulted on the rent and Terreon had to take them to court to evict them from the home. All of the issues eventually worked out and the property is now a great cash generator for him, but the rehab cost almost twice what he had budgeted. It took him about two years to start seeing reliable income from the investment. Many investors would have been sunk by one of these issues, but Terreon’s persistence (and primary source of income) helped get the job done.
With this hard-earned experience and the help of a strong partner, Terreon has completed 18 deals in the last 6 years. In addition to the inspiration from his father, Terreon was encouraged and supported by his now business partner, Larry. The two investors went to the same high school, and Terreon followed in Larry’s footsteps by attending the College of William and Mary. Larry saw the opportunity to develop and partner with another rising star from his community. Together, their goal is to create generational wealth. They have plans to share their success by syndicating deals with other local up-and-comers. With this extra investing power, they are even considering larger commercial investments!
Real Estate Syndication: Pooling of funds and talent by multiple investors to invest in properties and projects much larger than each could afford on their own.
Although he personally financed his first deal, Terreon realized that it was very risky and limited him to smaller value properties. Banks require a huge down payment for investment loans and have many stipulations that make it hard to get funding for distressed properties. In order to get the flexible, fast funding he needed Terreon turned to private money lenders. Rehab Financial Group is proud to provide private funding to Terreon’s growing empire!
Featured Investment Property: Norfolk Duplex
Terreon and Larry are currently wrapping up the rehab of a duplex in Norfolk that they purchased for $75K. With a rehab budget of $65K (for a total investment of $140K) they expected an ARV of just under $200K. However, with the high quality rehab they were able to accomplish the appraiser gave them a number that exceeded all expectations, at $263K!!! Encouraged by this unexpected margin, Terreon is looking to duplicate his results with a comparable property just a short distance from the this successful one.
Before Investment Pics
After Investment Pics
Real Estate Investment Tips from Terreon:
- Build relationships by not being greedy. It’s better to have respect and reliability than a few extra dollars.
- Take care of your people. Paying on time and being upfront about timelines and expectations helps contractors trust you and do good work.
- It’s hard to find profitable deals that make sense. Be patient and hold out for the right deal.
- Budgets are guides but there will always be unexpected costs. Be prepared for that.
- Don’t lead on faith, lead on action.
Ready to Invest? Submit a pre-application with Rehab Financial Group today to see if you qualify for funding.