“GROUNDFLOOR” ENABLED KISMET HOLDINGS TO SCALE
After 22 successful years in the home building business, Greg Mortimer decided to take some time off to enjoy the fruits of his labor. But five years into his semi-retirement, his brother Steve got the itch and suggested they flip houses together. The two formed Kismet Holdings in 2017 alongside Greg’s wife, Sheri, and they then focused on the bustling Atlanta market, zeroing in on high-demand neighborhoods inside or just outside the city, all nearby job centers.
Even with decades of home building experience, Greg couldn’t get a loan from a traditional bank since Kismet was a newly established company, so when he and Steve heard about GROUNDFLOOR, they tried it out with a small loan. They found the online process to be very simple, allowing them to keep their focus on fixing-and-flipping homes instead of being quagmired in paperwork.
For Greg, Steve and Sheri, fixing-and-flipping is all about efficiency. They’ve developed a very efficient workflow with Greg project managing the flips, Sheri handling the design work and Steve serving as the real estate agent. They’re also focusing on popular neighborhoods all within a 20-mile radius so they can be more streamlined with their subcontractors. And they want to get-in and get-out of homes as quickly as possible, providing quality construction and finishes, but knowing that margins shrink when delays occur. This means they needed to find an efficient lending partner as well, and GROUNDFLOOR fit that bill, allowing them quick access to capital and giving them the cash flow they needed to scale. When Kismet launched their company in 2017, they were working on one house at a time; thanks to GROUNDFLOOR’s borrower-friendly terms, they’re now able to work on three houses at a time.
With Kismet’s laser-like focus on efficiency, the company has achieved great success in the Atlanta fix-and-flip scene. Greg, Steve and Sheri have sold seven houses in only one year (four with GROUNDFLOOR as the lending partner), and the average turnaround time from possession to close has been only four-months! Furthermore, every single flip has received offers in excess of the appraised value of the home, and most have sold for the highest price per square foot in the respective neighborhood. In all, Kismet holding hopes to complete 10 flips this year and then double the size of the business next year with a goal of 20 successful sales.
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Kismet holdings are early investors in GroundFloor.com.