I’m Anthony. Hi, I’m Anna. And we’re the Gallos. We buy, renovate, and manage homes in Greenville,

South Carolina. While some investors chase the quick flip, we play the long game. Famous

last words. Building our portfolio for the future. Join us for the real story of the ups and downs and everything in between. Welcome to A Day in the Deal.

Previously on A Day in the Deal. Home sweet home. Anthony and Anna walk the Park Avenue property. I

love the windows here. Good bones with a big to-do list. This kitchen is not going to work. They weigh the promise against the problems. This is crazy. And leave us with one question: Is it worth an offer?

So, I think we need to move quickly. First impression: It’s a beautiful house. A lot of potential. I love the windows. Very charming with the greenery in the back,

the creek. I think that’s very special. It does have some challenges. We need to add another bathroom and really modernize the kitchen area. So, it does need a lot of

updating. So, you could see how this will snowball like most of our projects. But,

we’re walkable to downtown. And I think having a slightly smaller footprint of around 1,250 square feet does

afford someone a slightly more entry level price point to rent. I don’t really see an obstacle here that we can’t overcome. We can make it really attractive for someone to live in.

I think I’m ready to move forward. If she’s ready, I’m ready. I think now we just need to double-check that the numbers work. Let me put together a detailed schedule, and

we’ll see what we’re comfortable with offering. We’re going to have to call our CPA for that.

Ready to see? Let’s see. Okay, move-in ready. So, this is our duplex in North Main, which

is just north of downtown Greenville. We saw this opportunity come on the market last year. Today, we’re here to do a progress check. So, we need to make sure that the crown molding

that was installed is complete, and we want to make sure that there’s nothing that’s evident that we’re not already addressing. Wow, look at the tile. This looks nicer than our house.

It does. I love the marble mosaic. It worked out. I’m really proud of what we created here. I mean, everything in here was yellow. All the windows were in disrepair. The glass was falling out.

Now it just looks like a really beautiful space. There’s certainly a creative aspect to what we do. So, we want to make sure that, you know, every one of our designs is unique and people like it,

but at the same time too, we also try to be really practical about it because we’re going to be the first ones to hear when my window isn’t closing or this door

isn’t latching appropriately. If you put the extra dollars in now, to Anna’s point, you’ll receive fewer calls in the future. But I think, more importantly for us, when

someone walks in and has that reaction of, “Wow,” that’s when we feel like we won.

So, right now I’m putting together the construction budget for the Park Avenue project, and we’re evaluating our options there. This step is really important because the budget ultimately determines

the value of the loan. That’s going to drive the overall feasibility of the project and whether or not we can move forward. So far, we’re trying to determine whether it should be a duplex

or a single-family residence. Based on the floor plan and the cost it would take to make the duplex work, we think a single-family

residence is probably going to be the way to go. I mean, originally, when I first saw the project, there was a lot of opportunity there, but I wasn’t quite sure. There are definitely some

investments that we need to make and a lot of reconfiguration, but I feel like, based on what I’m seeing here and their overall vision, we can definitely make it work. Ronnie,

our representative with FACo, is on his way here. He’s going to review their budget numbers with us, make sure everything is in line, and then we can go from there. Knock, knock. How’s it going? Hey,

what’s up, man? How are you doing? Good. Good. Hey, how are you? So, I’m Ronnie Cannucci with Finance of America Commercial. I’m an account rep here. I’m going to be in charge of originating loans.

What do you guys have going on here? I think we got another one lined up. Oh, awesome. Before

we dive in, coffee, tea, espresso. Yeah. The communication that Ronnie has had with us has been

absolutely amazing. Every step of the way, I feel like the communication has been very transparent and very quick. So, what’s new in your world? Oh, you know, staying busy. I was heading this way, so I wanted to stop

in and say hello. Always something cool going on in Greenville, too. I think the last time I was here, they had the art festival. So, now they’re having the jazz festival. Never a dull moment. No,

I like to meet my customers face-to-face. I’ll always find an excuse to get to Greenville. Anna and Anthony, they’re great borrowers of mine. They’re two hours down the road. I love the area. What’s the

most popular suburb of Greenville, would you say? Most of the stuff we do is concentrated within probably a three-mile radius, but you’ve got some of the historic overlay areas like North Main,

Overbrook. So, is this one going to be in the historic district? It is just on the edge, just down the street from the others we’re working on. Okay. Looks very cool. We got some preliminary numbers if you want to take a look. Yeah, let’s go take a look at it. Awesome.

Tell me a little bit about it. Yeah, so it’s currently a single-family home. It was originally built as a duplex. It has a couple of fireplaces that we’ll have to work around, but

overall, it’s probably advantageous to keep it single-family. Personally, I like the charm of a single-family home in that area. I know once Anna gets her hands on it, it’ll be awesome. So,

whatever you guys prefer. You’re giving Anna all the credit for the renovation, Ron? You’re just a realtor. I’m offended. I’m offended. So, what are we thinking for the timeline

on the reno? Based on my projections, I think it’s going to be about six months. So, six to nine months to rehab it, and then probably another month, maybe, to get it rented. Is that fair? Yeah,

that sounds great. Okay. Yeah. I imagine that’s an area that doesn’t have much competition, rental-wise. It seems like more of a primary residence area. I’d say that’s a pretty accurate

statement. Yeah. It’ll be desirable as a rental. Absolutely. The yard in the back has some really mature trees and a little creek running through. So, from a parcel perspective, it’s as desirable as it gets.

What’s the purchase price? What’s the renovation budget? What’s your after-repair value? Is this feasible? I need to know the ins and outs of the deal in order for us to fund it. I think we’re going to be in the mid-300s on the acquisition,

and the budget is coming in at $125,000. Okay. With a contingency in mind. Sure. In total. Okay. So,

we’re all in at $450,000 to $500,000, let’s say. What are we thinking for after-repair value? So, if we can walk away with 10% to 20% equity after we put all the work in, we’re happy. So, I think

this one will fall in line, you know, in the low $600,000s, probably. I think it sounds exciting. I look forward to it. Contract, of course. Can you get me a contract and a budget? Yeah,

I can send that over. Okay, awesome. I’ll make the call. Let them know to expect an offer. Oh, while I’ve got you here, I just submitted the draw for Town Street. Do you want to go

take a look really quick? I have a few questions. Absolutely. That’d be great. Let’s do it. Awesome.

It’s a little bit different than last time I was here. So, right now we’re at the Town Street project checking in on progress for Anthony and Anna. All right. Whoa. Take your shoes off,

Ronnie. Wow. So, with us and on this project, Anthony and Anna have started work and now

they want to reimburse themselves. So, they do what’s called a reimbursement draw. In order to do so, we have to get eyes on it. I happened to be coming through the area and wanted

to stop and see clients, and now we’re out here at the property. We purchased that property six years ago, so we held it for a period of time before we started the renovation on

it. The exterior brick facade was falling off. It had flea infestation, crumbling foundations, and we were aware of some of the issues, but I think we’re just more well equipped to actually

address them than we were before. So, this is Unit 1 here. This is Unit 1, and we’ll have Units 2,

3, and 4. Four is in the basement—a separate unit. Yep. This is a big rehab, probably one of the biggest in Greenville, South Carolina, right now. This is a four-unit property in

pretty much a residential, single-family neighborhood. So, for the Greenville market, this is a really big renovation. Now, $700,000 to renovate a home in New York or Seattle may not be a big deal,

but for Greenville, it’s a pretty big deal. So, they’re all in—purchase price plus renovation—at around $1.1 million when they’re done. Now, they’re not going to sell it, but we have a projected ARV

somewhere around $1.7 million. So, from start to finish, we need to make sure: Does this deal make sense? And this deal makes sense. So, you want to check out the basement? Let’s do it. Let’s get

some eyes on it. All right, come on. Follow me. We got to go around the house. Each individual space has its own unique element. The downstairs unit is the largest footprint and you have ability to walk

outside, and you’re in the backyard. Okay. So, this is the fourth unit we’ll be going into. This is the

fourth unit. Yep. The basement unit. I didn’t wear the right shoes for this basement. Wow. So, since

you were here last, we finished the plumbing for the bathroom and the kitchen area. Oh, yeah. So, we should be all set. It’ll be a little bit of a challenge from a design perspective to

not make it feel like a basement. Right. We’ll make sure it’s airy, bright, and welcoming. Yeah, I think it looks great down here. I’ll help get that pushed through for you. No problem

there. Otherwise, you guys have done great. Let’s get out of here. Appreciate it. All right. Thanks so much. So, I’m more than impressed with what they’ve done. I’ve got plenty of peace of

mind here. I think we’re totally fine to release this draw, and that’s what we’re going to do.

Oh, it’s Ronnie.

Hey, Ronnie. It’s Anna. How are you doing? Good. Doing well. Is Anthony around? Yeah,

actually, I put you on speaker, so I’ve got him here. Are we in trouble, Ron? Yeah. So,

the Park Avenue property. Yes. It’s a really cool area. This would fit right into your portfolio.

One concern, though, is that we’re getting to a point where we have a lot of things going on—a lot of irons in the fire. We’re getting a little bit of pushback from underwriting.

But that being said, I just wanted to call real quick. And…

Next time on A Day in the Deal: Does Park Avenue make it past underwriting? The Gallos are about to find out.