WE BUY HOUSES

For Investors

Residential Acquisition & Disposition Strategy

1. Investment Objective

One Cherry LLC will systematically acquire, renovate, and resell residential properties with a targeted hold period of up to 150 days from acquisition to resale.

The company’s strategy is focused on:

  1. High-volume deal flow (30–40 acquisitions annually)
  2. Consistent margins using disciplined underwriting
  3. Efficient construction timelines leveraging in-house capabilities
  4. Targeting middle-class residential homes in stable, high-demand markets

2. Acquisition Criteria

Core Buy Box

All acquisitions must meet the following:

Price Basis

  1. Maximum purchase price = ≤ 75% of After Repair Value (ARV)
  2. Includes acquisition + renovation costs

Property Type

  1. Single-family homes
  2. Middle-class neighborhoods
  3. Strong resale demand (owner-occupied focus)

3. Deal Flow & Volume Targets

  1. Target Price Range (adjustable by market):
  2. Entry to mid-tier homes with strong buyer pools

Ideal Project Scope

  1. Cosmetic to light/moderate rehab
  2. Kitchens, bathrooms, flooring, paint, landscaping
  3. Minimal structural or major permitting delays

Sourcing Channels

  1. Annual Target: 30–40 closings (buy side)
  2. Pipeline Goal: Maintain 8–15 active projects at all times

Sourcing Channels

  1. MLS (underpriced / stale listings)
  2. Wholesalers
  3. Off-market opportunities
  4. Agent relationships

4. Pre-Acquisition Requirements

Before any property is purchased, the following must be reviewed and approved:

Financial Review

  1. ARV validated with comps
  2. Detailed renovation budget
  3. Holding costs (interest, taxes, utilities) based on 150-day hold
  4. Projected net profit margin

Strategic Review

  1. Exit price positioning
  2. Market absorption rate
  3. Buyer demand in submarket

Key Rule: No purchase is made without confirming the deal fits the 75% ARV model and meets profit thresholds.

5. Renovation Strategy

Timeline Goal

  1. Total project duration: up to 150 days
  2. Construction: 60–90 days
  3. Market + sell: 30–60 days

Execution Approach

  1. Prioritize non-permit or fast-permit work
  2. Utilize in-house crews first
  3. Supplement with trusted subcontractors when scaling

Value-Add Focus

  1. Kitchens (high ROI)
  2. Bathrooms
  3. Flooring upgrades
  4. Paint (interior/exterior)
  5. Curb appeal & landscaping

6. Listing Strategy

Pre-Listing Planning

  1. Listing price strategy
  2. Marketing plan (photos, staging, exposure)
  3. Commission structure
  4. Timing of market entry
  5. Comparable sales alignment
  6. Disposition Strategy

7. Disposition Strategy

Primary Exit: Retail Sale

  1. Full market exposure via MLS
  2. Target owner-occupant buyers
  3. Maximize resale value through finish quality

Pricing Strategy

  1. Fast absorption
  2. Competitive positioning
  3. Strong net return

8. Pre-Sale Requirements

  1. Final walk-through completed
  2. Punch list fully closed
  3. Professional photography completed
  4. Pricing + commission agreed with agent
  5. Net sheet reviewed and approved

9. Profit Protection Rules

  1. Strict adherence to 75% ARV rule
  2. No emotional purchases
  3. Budget discipline during construction
  4. Continuous cost monitoring
  5. Exit strategy defined before acquisition
  6. All deals must support profitability within a 150-day hold window

10. Operational Philosophy

  1. Speed – controlled execution within a 150-day cycle
  2. Discipline – strict buying criteria
  3. Volume – scalable deal flow
  4. Quality – renovations that sell quickly at top value