Today, we’d like to introduce you to Melanie Hartmann.
Hi Melanie, thanks for sharing your story with us. To start, maybe you can tell our readers some of your backstory.
I worked as a school psychologist for Baltimore City Public Schools and enjoyed it initially, but I always felt pulled towards investing in real estate. I attempted to purchase a few rental properties that were listed on the MLS, but they ultimately did not offer the returns I was looking for.
I started looking into how investors actually find properties worth buying and discovered that the most successful investors sourced their deals off-market. Many by directly marketing to sellers who might have distressed properties they no longer wanted to deal with. I decided to quit my job, as we thought we were moving out of state at the time anyway, to focus on investing in real estate full-time. It’s had its ups and downs.
When COVID hit in 2020, we were just about to take off. However, after a setback with a contractor that took our money and ran, we then had some personal family issues later that same year that knocked us off course the rest of the way. However, after doing a few deals here and there, we’re finally in the recovery phase, and things are looking up again.
Actually, it’s been through strong partnerships with colleagues and other real estate companies that work in the DC Metro area that have allowed us to have more success than trying to do it all on our own. My family and I actually travel full-time in an RV now and have since the end of 2021.
So I mostly manage deals virtually now, but it’s completely possible when you have solid boots on the ground. We’ve managed to keep our expenses low while on the road, so the few deals we were able to close have been enough to sustain our lifestyle, along with seasonal work my husband does a few months out of the year.
Would you say it’s been a smooth road, and if not, what are some of the biggest challenges you’ve faced along the way?
It has not been a smooth road. COVID and schools/daycares shutting down, shady contractors, and family issues have made it a struggle. We stopped outbound marketing shortly after COVID hit because we could no longer afford the expense after a contractor took our money. We had to sell that property at a loss as we couldn’t afford to fix it up.
Things were so bad in 2020 that, at one point, we were only a few months away from not being able to afford our own mortgage. It’s not exactly a good look when you are trying to buy properties to flip as your business. Fortunately, with the government programs, we were able to put our mortgage in forbearance, sell off that property the contractor left us with, and recover a little. However, things were still a struggle because the kids were home, and like many other families, we were trying to navigate working with kids.
My husband worked at a hospital during COVID and was out of the house for nearly 12 hrs a day most days of the week, so that was also a bit scary and rather challenging for us. It was difficult to take my kiddos with me to view houses to buy since my youngest was not great about keeping her mask on and was often trying to get into things. So, it was not the safest situation.
I started working from home as much as I could and began partnering with others to outsource the field work required when flipping houses. Navigating all of these changes was not easy. Then we were hit with some tough family issues later in 2020 that took me a while to recover from mentally and it negatively impacted my business.
So, from late 2020 through 2021, I began trialing working on real estate investments virtually even though I still lived locally. In early 2021 we decided we were going to travel full-time in an RV. I discovered I could work virtually even though we still had a few things to tighten up after we hit the road. I haven’t been back to Maryland since late 2021 but have managed to successfully flip several houses since then.
Thanks for sharing that. So, maybe next, you can tell us a bit more about your business.
We started in 2018 by getting cash for sellers of houses that were in need of repair or the sellers were facing difficult situations.
I enjoy this aspect because we can help people who aren’t a good fit to list their properties on the open market. Maybe they are facing foreclosure, or their house is in bad shape, and they want to keep the sale out of the public eye. We are not a great fit for most people looking to sell their house.
Most people are better off listing with an agent, but for the people we do help, it is very rewarding. I spoke to a seller recently for an hour while we discussed his situation. He appreciated how even though he had been facing difficulties in life and had let the property fall into disrepair, he didn’t feel judged by it.
We’re closing on his house two weeks after he accepted an offer – saving him from foreclosure and keeping the sale and condition of the house discreet. I think experiencing financial difficulties myself growing up, and my formal training as a school psychologist really comes in handy for helping sellers feel at ease during these otherwise stressful situations.
However, after a couple of years in the business, we realized that selling for cash isn’t always an option either, so we now offer to fix houses up before they are sold or make payments over time so sellers with low equity or who do not have to sell fast can still find a solution to get out of their unwanted properties. Creo means “to create or produce” in Latin, and that’s what we do. Our business provides Creative, Reliable, Exceptional Offers – CREO to sellers who can’t or don’t want to list their house the traditional way.
What do you like and dislike about the city?
I love the diversity the city offers. There’s never a dull moment, and you have a little bit of everything available to you. Also, you’re within a few hours of any sort of surroundings you want, such as a beach, mountains, etc. Baltimore does not lack in history or culture. However, the public transportation system leaves much to be desired.
It’s also unfortunate how old practices left so many disadvantaged when trying to purchase homes that we’re seeing the negative effects of that today. This has left many areas of the city neglected and abandoned. While many areas of Baltimore are thriving, there are just as many that are dying or unsafe. This has driven many folks out of the city. I remember when I was still working for the school system; they were asking for staff members to visit folks who had left the city to see if they could entice them back in.
The school system in Baltimore faces difficulties as well, and teachers are often not supported the way they should be. That being said, there are people who truly care about the growth and development of the city, so I’m excited to see how it’s turned around in the coming years while also keeping in mind not to displace its current residents who may not be able to afford their neighborhoods being gentrified.
Contact Info:
- Website: https://creohomebuyers.com/
- Instagram: https://www.instagram.com/creo.home.buyers/
- Facebook: https://www.facebook.com/CreoHomeBuyers/
- Linkedin: https://www.linkedin.com/company/creo-home-buyers/
- Twitter: https://twitter.com/CreoInvestments
- Youtube: https://www.youtube.com/channel/UCSTGj_ZnI2MFiMGTof1sKnA/
- Yelp: https://www.yelp.com/biz/creo-home-buyers-timonium
- Other: https://www.dreamsbuiltin.com/
