At BackStreet Capital, we are always searching for a distressed or adaptive reuse opportunity. Prior to the acquisition of a property, we run a detailed analysis to include purchase price, renovation costs, resale market analysis, as well as holding and closing costs. If after we run our analysis, we find that we can not resale "profitably" at a price below current market values, then we simply don't acquire the property. This provides us a necessary margin for the possibility of unexpected expenses.
BackStreet Capital goes into the renovation with a complete understanding and detailed overview of the exact processes, procedures, and materials to be used. Our contractors are provided with exact details, materials, and costs to be applied. A detailed and formal agreement is established which makes it very difficult for the contractor to add to or change the agreed upon costs. We do everything possible to assure that a project comes in "on-time and on budget".
Prior to the completion of all work, we go ahead and put the property on the market "for sale". Our offering will not only go out to the general public, but will also be offered to our Clients looking for a longer term investment hold and monthly income. Should the property not be placed under contract prior to the completition of the renovation process, we will typically "stage" the property to assure that it is viewed in the most inviting and profitble light possible.