After years of prioritizing her children as a single mother, Sue McCormick has ventured into the world of real estate investment. With five years of experience, she is currently working on her 20th property project. McCormick’s journey reflects a commitment to her hometown of Dayton, where she aims to rejuvenate neighborhoods through property investment and renovation.
Initially hesitant to pursue her investment plans, McCormick found confidence through podcasts. Recognizing that properties in Dayton were more affordable than in other markets, she decided to focus her efforts there. Her mission extends beyond financial gain; she takes pride in enhancing the community through her renovation projects.
Investment strategy and project management
McCormick’s investment approach is straightforward: she primarily targets fix-and-flip properties. “Currently, our strategy revolves around rehabbing homes for resale,” she explains. Most of her acquisitions come from real estate auctions, particularly from sites like Auction.com. Out of the 20 properties she has purchased in the past five years, eight were acquired through auction, with her latest purchase occurring in June.
One of her current projects was acquired at a tax auction for $80,000, with an additional $70,000 invested in renovations thus far. Once the rehab is complete, she plans to list the property at approximately $269,000. McCormick has found that auction prices are often more favorable than traditional MLS listings, although she acknowledges the risks, such as uncertain interior conditions.
Embracing risks and leveraging technology
McCormick demonstrates a strong tolerance for risk, balancing it with the potential for substantial rewards. “I am not deterred by purchasing homes without seeing pictures beforehand,” she states, highlighting her comfort with auction-related uncertainties. Additionally, Ohio’s online foreclosure auction system allows her to participate in these events from anywhere, enabling her to bid on properties even while traveling.
Collaboration is essential to her success. While she focuses on sourcing deals, her daughter travels to Dayton to oversee project progress, utilizing FaceTime to communicate with contractors. This division of labor strengthens their family bond as they work towards shared goals.
Building a reliable network and learning from experience
Over the years, McCormick has cultivated a network of reliable contacts in Dayton, from friends assisting with errands to a contractor who has become like family. A significant moment in her journey occurred when a subcontractor stayed late to ensure her safety during a property tour. This connection proved invaluable, as he has been her trusted contractor for five years. “The right contractor can make or break your project,” she emphasizes, underscoring the importance of trust in these relationships.
Advice for aspiring investors
For those looking to follow in her footsteps, McCormick offers essential advice: thoroughly educate yourself about the investment process. She encourages newcomers to engage with resources like podcasts, particularly BiggerPockets, which introduced her to Auction.com. Immersing oneself in the community by attending auctions, visiting hardware stores, and joining online groups can provide invaluable support and insights.
In her experience, conducting extensive research is crucial, including running comparative market analyses and speaking with neighbors about properties. McCormick meticulously prepares for potential challenges, planning for worst-case scenarios involving plumbing, electrical systems, or roofing. She warns that underestimating costs can jeopardize an investment, recalling her first auction win, which came with undisclosed kitchen-fire damage. Although profits were minimal, this experience fueled her determination to continue investing.
Furthermore, McCormick highlights the importance of vigilance regarding property titles. Following a past incident of deed fraud, she now recommends subscribing to county alerts that notify property owners of any title changes. This proactive approach mitigates potential risks, ensuring a smoother investment journey.
Initially hesitant to pursue her investment plans, McCormick found confidence through podcasts. Recognizing that properties in Dayton were more affordable than in other markets, she decided to focus her efforts there. Her mission extends beyond financial gain; she takes pride in enhancing the community through her renovation projects.0
Initially hesitant to pursue her investment plans, McCormick found confidence through podcasts. Recognizing that properties in Dayton were more affordable than in other markets, she decided to focus her efforts there. Her mission extends beyond financial gain; she takes pride in enhancing the community through her renovation projects.1