After Hurricane Florence, we saw an opportunity.
There were a lot of absentee owners with damaged properties who were not local and not actively managing their investments. Instead of sending mass mailers, we took a more direct approach.
I pulled a list of out-of-town property owners using the Onslow County GIS system. From there, I skip-traced the list to find phone numbers and emails, then started calling and emailing each owner.
One of those owners was a retired Marine Corps officer who had owned this duplex since 1988. He had rented it for over 30 years and had not kept up with maintenance. The property had also taken storm damage.
I called him multiple times over the course of a month. Eventually, he called me back.
This post is part of my First 10 Real Estate Deals series, where I break down what actually happened, not just the wins.
👉 First 10 Real Estate Deals -- Series Hub
Why This Deal Was Different
This was not a traditional buy-and-hold deal. This was a wholesale deal, where I found the opportunity, got it under contract, and assigned it to a friend. At the time, I did not have the capital lined up to take it down myself, but I had a friend who wanted to learn about investing, so I gave him the deal.
The Strategy
We approached this deal differently than most investors. Instead of making a simple low offer, I built a fully justified acquisition package:
Itemized rehab scope with contractor pricing
Estimated after-repair value
Historical income estimate over 30 years
Estimated appreciation over time
Clear explanation of investor margins
Then I walked him through how I arrived at my number. I also shared that I owned a duplex across the street, explained my experience investing in the area, and built common ground through our shared Marine Corps background.
This separated me from every other investor reaching out to him.
The Numbers
Purchase Price (contracted): $33,380
Estimated Rehab: ~$40,000
Strategy: Wholesale to a friend (for free), manage the rehab, and manage the property long-term
The seller reviewed my full breakdown, shopped it around, and came back two weeks later to accept my offer.
What Happened Next
We assigned the deal to a friend who purchased the property, funded the rehab with cash, and completed renovations. Avery managed the closing, the renovation, and the lease-up.
This became the first property we professionally managed for someone else. A major step toward building Cedar Ridge Management.
The investor later completed a cash-out refinance and is achieving approximately a 68% cash-on-cash return.
Wins and Losses: My Lessons Learned
Lesson 1: Direct Contact Wins
This deal came from calling the owner directly and having a real conversation. Most investors rely on mailers. Few take the time to understand the property and present a thoughtful offer. That difference matters.
Lesson 2: Know Your Numbers Better Than Anyone Else
The reason this deal worked is because I clearly showed what the property was worth, what it needed, and what an investor margin should be.
If you want to structure deals like this, you can use my Real Estate Deal Analyzer.
Lesson 3: I Would Rather Own the Deal Than Wholesale It
At the time, I didn't have the capital and didn't know how to get creative to raise it. Looking back, this is a deal I would have preferred to keep.
All in all, though, this was still a great deal for Avery and me because it was our first deal we found, rehabbed, and managed for someone else. This client is still a friend today.
And although I wish I owned this property, this was the official launch pad of Cedar Ridge Management as you know it today.
Lesson 4: I Would Rather Wholesale Than Miss the Deal
Six years later, my perspective has evolved. Not doing deals is worse than wholesaling deals. Wholesaling builds deal flow, generates cash, and strengthens your network.
If you are not consistently analyzing deals, your investing will stall.
This Deal Helped Launch Our Property Management Business
This was Avery's first deal managing a property for someone else. Through this deal, she refined tenant screening processes, built leasing systems, and gained hands-on experience managing for clients.
This directly contributed to the foundation of Cedar Ridge Management.
What I Would Do Differently
I would have found a way to keep this deal. Even if it meant partnering, raising capital, or structuring creatively. This was a strong long-term asset in a great rental location near Camp Lejeune.
Would I Do This Deal Again?
Yes. But ideally, I would structure it to own it.
Key Takeaways
Deals are found through effort, not luck
Relationships and credibility win deals
You must stay active in the market
Wholesaling is better than not doing deals
This deal was absolutely foundational to the creation of Cedar Ridge Management
What is Next
In Deal #6, I review a clean, boring turnkey deal that went exactly as planned, and how it validated the system I had been building.
👉 Deal #6: The Turnkey Deal That Validated My System
Looking back at the previous deal in this series: Deal #4: How One Duplex Turned Into an Infinite Return (and Built Our Systems)
If you want to evaluate deals with a long-term lens, not just monthly cash flow, download my Real Estate Investing Analyzer + Deal Analysis Video.
Want Help Evaluating Your Next Deal?
At Cedar Ridge Management, our mission is to enable financial freedom for owners, tenants, and teammates.
If you are interested in real estate investing, or have a home you want to rent out and want to partner with a local, investor-minded property manager, schedule a call with our team here.
We would love to partner with you.
