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The Chamberlin

406 & 410 Chamberlin Ave. Durham, NC      |      Project Type: Flag Lot      |      Status: Complete

$60k

Cash Investment

$1.028M

Total Revenue (Projected)

2.34x

Equity Multiple (Projected)

The Backstory

The Chamberlin project began with a fortunate connection. The seller, having previously worked with Mark on construction, reached out after a wholesaler offered $250,000 for the property but failed to close. Leveraging their ability to generate off-market deals, Mark and the team negotiated a $236,000 purchase, closing within the seller's desired three-week timeframe. As part of their extensive pre-offer due diligence, Mark and Devin recognized the potential for subdivision and even visited the property with a tape measure to explore the possibilities. To ensure accuracy, a formal survey was commissioned after going under contract. This confirmed their initial assessment: Thanks to Durham's Expanding Housing Choice provisions, a full standard lot, valued at approximately $125,000, could be created behind the existing structure.

Execution

Leveraging a trusted partnership with a private lender, the team secured financing for a medium renovation of the front house. This included enclosing a sunroom, converting a half bath to a full bath, a complete kitchen remodel, exterior cosmetic updates (landscaping, paint), and minor structural work. Demonstrating their expertise in structuring complex deals, the team secured financing that also covered the costs of subdividing the lot.

Understanding the evolving dynamics of Northgate Park, they opted to build a higher-end, custom-style home on the subdivided lot. The chef’s kitchen with waterfall island, engineered hardwood floors, and exquisite tile bathrooms were an exhibition of local expertise by the team, and catered to the neighborhood's typical upscale clientele. 

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Financial Results

The financial results of the Chamberlin project were significant. The team was able to execute with just $60,000 of their own funds. After the $236,000 purchase and $130,000 rehab on the front home, the sale generated $407,200 (after concessions and real estate agent fees) on a total budget of just $366,000. This profit allowed BETTER to pull all of their cash out of the deal, to almost entirely derisk themselves. 

 

This was just the appetizer, though, as the subdivided lot allowed for the construction of a new home behind it at a cost of $430,000. This second property sold for $600,000, resulting in a substantial profit after accounting for interest and real estate agent fees. All said and done, BETTER turned their initial $60,000 cash investment into $140,320, more than doubling their initial capital in just 18 months. 

Property Photos

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