5 Flips Start to Finish!!!

[Andrew Cordle]

Hey Everyone, 

I began flipping houses more than a decade ago. I can recall how lost I was when I started and I wish that I would’ve had someone to guide me through the process and allow me the opportunity to avoid all of the mistakes and pitfalls that new investors experience. I’ve done a lot of thinking over the last few days about how difficult it was for me when I began. I thought about how hard it must be for the present investor without experience.

I am on Bigger Pockets almost every day and have seen countless examples of investors who talk about how much they wish they had a mentor or someone to help them along their investing journey. So, I’ve decided to try and help a little. I am a strong believer in “teaching people to fish” rather than merely “giving them a fish.”

Over the course of the next several months, I will be posting an on-going series that details my 8-phase process to flipping for (5) Atlanta properties. The price points of these investments range from $400,000-$750,000. The flips will include everything from new construction to major rehabs to full gut jobs…and even a really cool turn-of-the-century Victorian home located in Atlanta’s Grant Park Historical District! In addition, you will be privy to all labor and material costs. I’ll even share the material SKUs I use on these 5 flips. I will try to answer all questions as I guide you through this journey, step-by-step. And there will be plenty of before, during, and after pics for your viewing pleasure and even some videos.

I wish that someone would’ve done this for me ten years ago. It would’ve saved me tens of thousands of dollars and a whole lot of stress! Keep in mind, however, that flipping properties will never be easy. It takes a lot of hard work, on-going education, and dedication to flip and turn a profit. And unlike many of those TV shows and news reports, house flipping, although seemingly simple, it's not as simple as it seems! I'm going to do my best to simplify the process. At least once a week hopefully more, I will be sharing one of the eight phases of the flip as we do them. I’ve put together the following checklist for each of the eight phases - which simplifies what, in reality, can become a very complicated process. I want to remove some of those complications! Here are the 8 Phases of the Flip:

The 8 Phases of Flipping:

1. Project overview - basic info, size, location, numbers, how found property, budget, blue prints, permits, surveys

2. Demo - cost, number of dumpsters, time start to finish, crew size, landscape clean-up

3. Rough Construction - framing, electrical, HVAC, plumbing

4. Exterior - window, siding, roof, decks/porches

5. Interior - drywall, trim, doors, flooring, paint

6. Kitchen - layout, cabinetry, countertops, backsplash, appliances

7. Bathroom - vanity, countertops, fixtures, tile, floor, shower, accent

8. Finished product - landscape, punch list, cleaning, branding, staging

Be sure to keep in touch and feel free to submit any inquiries you may have. I’ll do my best to answer all of them. If you happen to be in the Atlanta area, Maybe I could show you the flip process in-person if you would like. 

For now here are the 5 houses: The next post will be later today explaining each of the 5 houses in detail. Lets do this!!!

Thanks and see you later today with a post for each house!!

Andrew

[Andrew Cordle]

Hey everyone, 

I apologize for the delay I have been traveling this past few days, I am hoping to answer all the questions on Sunday or Monday at the latest. 

Thanks so Much!!

[Andrew Cordle]

@Mark Breaux 

Thanks for the questions. Let me see if I can answer them. 

1. This house could go either way really as a tear down or a major rehab with an add on. But we decided to tear down to be able to get more on the backend. Of course new construction cost more but also demands more money.

2. There are houses around there selling for 400k even higher this house when it is listed may sale for around 420k

3. The house was on the market for 108k for less than a day. 

@Brendan Mylton  @Ben Nelson 

Thanks guys for the comments and you are correct 2 of those houses are teardowns.

@George P.

You have a very solid and good point as far as the yard goes. But when rehabbing or building it is very important to know who your buyers are. In this case the buyers are Yuppies, Guppies or DINKS so due to that fact the yard is mainly for entertaining. But again very good point you are making when it comes to RE. 

If you have any more questions please let me know, again I apologize for the delay as I have been traveling. 

Thanks

Andrew Cordle

[Andrew Cordle]

@Julie Greene

1) How did you go about putting together your team - through local REI or other RE networking groups?! Who are the different types of people on your team (and do any of them work for you?). How long did it take you to put together a group that you felt comfortable with?! I am just starting out....would someday love to do a flip....but don't yet know enough people! ;)

REI is a lot like other businesses it is all about who you know. Now a little different from say corporate world where it is about knowing the people at the top. This world of REI is about knowing who to call to get the job done. Sp putting your team together is very important part of the business. You can get your team more different places. REIAs are a good place to start but I doubt you will find everyone there. You will have to start networking to people who are actually rehabbing and building get around that crowd not the crowd that is talking about doing it. You can also visit your HD or Lowes Pro Desk and see who they are working with and if they can recommend any rehab contractors.

2) I was also wondering the same question that @Mark Breaux was on that teardown - how did you decide that it was a teardown? Also, how did you decide what the new house would look like (do you have a go-to floor plan for specific areas?!)

See the answer above for part one when I answered Mark, As far as 2. we don't persay have a go to floor plan as different lots require different houses. We of course have lots and houses/plans that we like but it all depends on the actual lot. 

You normally start with a survey

then you can get a designer to help with ideas as far as plans

then you go to a artichet and they will need your survey and ideas then they can begin crafting a house for you. Of course in most areas there is always a theme of houses meaning in ATL you don't see a lot of Arizona type of houses with Stucco or Texas style with stone so each area does have its own style that you will want to stay with. 

Hope that helps in short answer of course both of those questions we could talk about for hours but hopefully that puts you down the right path. 

Thanks and let me know if you have any other questions.

[Julie Greene]

@Andrew Cordle  I really appreciate you taking the time to answer my questions.  They were extremely helpful.  I look forward to following along as you continue to chronicle your flips!  

[Newton Pham]

subscribed and excited to learn.

[Mark Breaux]

@Andrew Cordle I am looking at a property and wanted to put a bid on it before going to see it with a 10 day inspection. My agent says that I have to pay for an inspection in order to do that. Since I haven't seen others talk about this here and I know you have done this, how do you get around this? I don't want to actually pay for an inspection. I want to be able to put a bid on a property to get it locked up before wasting my time on drawing up concrete numbers on the repair. I have a decent estimate for a bid though. Thoughts?

[Andrew Cordle]

@Mark Breaux

First sorry for the lost this weekend. ( I am a die hard SEC fan) 

I have never paid for an inspection in order to be given a 10 day inspection allowance. NOT saying that it couldn't happen. What I would do is call my agent and ask them is this something that the BOR is making her do or is this some kind of new RE law that I have to do it. 

Sometimes, agents will request certain items because they think they know best. And I am not saying that they don't for regular home buyers but they do not always know best for the investor. And sometimes they treat everyone the same. 

Saying all this, I would just simply ask the realtor for now and pin her/him down on is it a requirement by BOR? Not just an idea or opinion. 

Lastly, if you really like this house and you have not done several flips to have an inspector out there to check on everything is not a bad idea I can tell you that there are many times I wish I would have done that. 

Let me know if you need anything else.

AC

[Mark Breaux]

@Andrew Cordle 

 Thanks for the empathy on the loss! It was hard to see but maybe it will help us turn a corner and win the rest! Its the beauty of the playoff!

So I did some quick research. It looks like different states require different things...why i didn't think of it before I am not sure but hopefully someone else out there learns from this and checks the state laws. Kansas and Missouri require a qualified, independent inspector and the report to be attached if I choose to terminate the contract. So either A) I have to pay for the inspection and use money up even if I don't buy it or B) have my GC do an inspection before the offer gets put in and then go from there.

I would like to do the inspection but I also don't want to depend on it so to speak for purchase price. That would be a big expense to have per house I look at it.

[Michael Baradell]

@Andrew Cordle awesome thread you have started here!! Very helpful!!

@Mark Breaux you do not have to pay for an inspection in order to put a property under contract. I think what your realtor is trying to say is that, if you do decide to terminate the contract during your due diligence period, you may have to show the seller an inspection report of your findings and the reason you want to cancel. Now, this is not required either, but I think that may be what she is trying to say.

[Mark Breaux]

@Michael Baradell 

The property is in missouri. Here is the Real Estate contract in that state. I could be reading it wrong but it appears I have to.

http://missourirealtor.org/wp-content/uploads/RES-2000-Contract-for-Sale-of-Residential-Real-Estate.pdf

[Atchut Neelam]

Thanks for sharing this thread. Very inspiring

[Rick Baggenstoss]

@Andrew Cordle Are all these wrapping up?  What's next with them?  

[Maxwell Hunter]

This was a great post @Andrew Cordle! Thanks for taking the time to explain/display the various phases.  I'm curious if there has been any additional update?  I would love to see more.

[Joe Moore]

@Andrew Cordle - Is there any more updates?  Truly this thread was very instructive to many.  Thanks for taking it this far. More updates appreciated.

[Bhekizwe M.]

thanks for sharing.look forward to more updates

[Barbara Banks]

Andrew, I wonder if there is any update on the project. I live in Grant Park, and was walking past 417 Augusta today, which brought me to this forum. Several new homes have been built on that corner, with a sign saying that more are scheduled, and it gives me the impression that the beautiful Victorian will be lost, Just curious!

[Wesley Reeves]

This is an amazing thread.I hated to see it end without full detail into the houses being finished.