After years dedicated to raising her children as a single mother, Sue McCormick has embarked on a remarkable journey in the world of real estate investment. With five years of experience, she is currently working on her 20th project. As she nears the completion of this milestone, she has already lined up two additional projects, reflecting her commitment to revitalizing her community.
McCormick’s story is rooted in her love for Dayton, the city where she grew up. She chose to invest in her hometown not only for the affordability of properties but also because of the joy she finds in rejuvenating aging neighborhoods. Her passion for community development aligns seamlessly with her investment strategies.
Investment strategy and methodologies
At the core of McCormick’s investment philosophy is a straightforward approach: rehabilitate and sell. “Our focus is on upgrading homes for resale,” she explains. The majority of her acquisitions come from auctions, particularly through platforms like Auction.com, which she credits for providing excellent opportunities.
Over the past five years, she has acquired eight out of twenty properties through Auction.com, with her most recent purchase in June. Typically, she allocates around six to eight weeks for each rehabilitation project, ensuring quality work is completed within a reasonable timeframe.
Understanding the auction process
One recent project exemplifies her methodology: she purchased a property at a tax auction for $80,000 and has invested approximately $70,000 into renovations. She anticipates listing it at around $269,000. McCormick believes that auction prices often outperform those found on the Multiple Listing Service (MLS), although she acknowledges the inherent risks. “Going into a house without prior knowledge of its condition doesn’t intimidate me,” she states confidently, as the potential savings motivate her willingness to take risks.
By leveraging Ohio’s online foreclosure auctions, McCormick has been able to invest from a distance. This flexibility allows her to participate in auctions without the need for constant travel to Ohio. She has even placed bids using her smartphone while on vacation.
Building a reliable support system
McCormick implements a practical division of labor in her investment endeavors. While she primarily sources deals, her daughter assists by visiting Dayton to monitor progress and maintain communication via FaceTime with the contractor overseeing the renovations. This collaboration has proven effective in managing projects from afar.
Her network in Dayton is an invaluable asset, comprising friends who assist with minor tasks and a contractor who has become like family. A memorable moment occurred early in her journey when a subcontractor stayed behind after hours to ensure her safety during a property tour. “From that day forward, I developed a strong bond with this contractor, who has been part of my team for five years,” she reflects. McCormick emphasizes the importance of trustworthy contractors, noting that they significantly impact the success of her projects.
Lessons learned and advice for newcomers
For those entering the real estate investment landscape, McCormick advises a thorough understanding of the process. She encourages new investors to conduct research, observe properties firsthand whenever possible, and develop a conservative budget. “Running comparables and attempting to view the interiors of vacant homes are crucial steps,” she suggests. When estimating rehabilitation costs, she prepares for worst-case scenarios, such as extensive plumbing issues, electrical updates, or roof replacements.
McCormick cautions against underestimating expenses, recalling her initial auction victory, which revealed unexpected kitchen fire damage. Although it didn’t yield significant profits, the experience instilled confidence in her future ventures. Furthermore, she stresses the importance of being vigilant with property titles. After experiencing deed fraud, she now recommends signing up for a county alert service that notifies owners of any deed changes.
Community impact and motivation
McCormick’s story is rooted in her love for Dayton, the city where she grew up. She chose to invest in her hometown not only for the affordability of properties but also because of the joy she finds in rejuvenating aging neighborhoods. Her passion for community development aligns seamlessly with her investment strategies.0
McCormick’s story is rooted in her love for Dayton, the city where she grew up. She chose to invest in her hometown not only for the affordability of properties but also because of the joy she finds in rejuvenating aging neighborhoods. Her passion for community development aligns seamlessly with her investment strategies.1
McCormick’s story is rooted in her love for Dayton, the city where she grew up. She chose to invest in her hometown not only for the affordability of properties but also because of the joy she finds in rejuvenating aging neighborhoods. Her passion for community development aligns seamlessly with her investment strategies.2