Finding Firecracker Deals
As you know, in June, we put a property under contract and were proceeding into due diligence. Due diligence is our opportunity to do a deep dive into the property’s financials, leases, and the condition of the buildings and grounds. In today’s buying environment, in order to win bids on properties, it is necessary to put up substantial amounts of nonrefundable earnest money just for the privilege of conducting due diligence. This can be a very risky proposition as there can be hidden issues not uncoverable until you dig deep enough to see them.
That is what happened in our case. During due diligence, we discovered a foundational issue and I asked our property management company to make sure and get estimates. The estimate came back with way more substantial problems than any of us expected. Fixing a foundation is generally not a problem and most if not all properties in this area have foundation issues of some magnitude or another. We are still at this moment trying to find a solution that may allow us to buy the property but do not hold out much hope that we can find a solution that will be acceptable to us and the seller. If we do, we will certainly move ahead and buy the property as we like it, but it has to be right before we will.
In June, we also made a trip up to Nebraska to look at another acquisition opportunity. One of the best parts about traveling for property tours is also the potential to see relatives, which we take full advantage of when we can! As individuals and a company, we are also trying to find new ways to reach and help our community. We would love to hear about some of your favorite and meaningful ways to better your community that we could add to our goal.
As for July, while we are still working on the issues of this project, we are moving toward finding another property to acquire and start this process all over again, hopefully with the end result of us closing on the property. Coming up in the next few months, it looks like we are Co-Sponsors on two deals with Kahuna Investments Corey Peterson. We will be part of the ownership group on those projects and will most likely have spots available to invest, so keep an eye out for info on that. We are also hitting the road in search of more properties as well as attending the Shaper Leadership Conference to sharpen our business acumen with Gary and Susan Harper.
We are so grateful for all of your support and will continue to work hard to create great opportunities for us all. Have a great July!
Keep chasing your dreams!