Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Rehabbing & House Flipping
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 10 years ago on . Most recent reply

User Stats

92
Posts
26
Votes
Jessica G.
  • Investor
26
Votes |
92
Posts

You never forget your first!

Jessica G.
  • Investor
Posted

Hi everyone! I haven't really posted in about five weeks, and this is why:

http://imgur.com/a/TJ54Z

My first true flip! I made a ton of mistakes and learned from every single one. My "plan" was simply to follow the advice in both of J. Scott's books as closely as I could (I even took them to a copy shop and had the binding cut off and holes punched so I could put them in binders). Next time I think I'll be able to spend less money and less time. Onward!

Let me know if you have questions. There is some commentary in the photo album.

Rough numbers:

Purchase price: $93,000

Rehab: $14,000

Cost of hard money loan & fees: $4,000

Commissions & selling costs: $8,000

ARV: $140,000 to $145,000

Most Popular Reply

User Stats

92
Posts
26
Votes
Jessica G.
  • Investor
26
Votes |
92
Posts
Jessica G.
  • Investor
Replied

Sure @Account Closed Here are some of the biggest issues that I am trying to learn from:

1) I got a written inspection report before purchasing the property, which, duh, of course, right? Well, the inspector flagged a bunch of "issues" that aren't really problems at all in a house built in 1957... but sound scary to average buyers. Now that I am selling, the TREC seller's disclosure form instructs me to attach a copy of this inspection report to provide to buyers. I'm unhappy about that, because I don't want people freaking because the inspector says the house needs an upgraded electric panel. I've had two licensed electricians take a look and they both said it's fine, safe, and compliant with city code due to grandfathering. Same issue with some plumbing and natural gas fixtures. Also, some of what he wrote is inaccurate. He said the automatic opener on one of the garage bay doors is broken. Um, no dude -- there's no opener even installed on that door. Not to mention, about 70 percent of the stuff he flagged in the report is no longer relevant because I've done so much renovation to the house.

2) When you use a hard money loan, you have to pay for the renovations twice -- once up front, then again when you actually have the repairs performed. The lender reimburses you, but only after inspecting the work. I knew this in my head, but in practice it was hard to time projects according to our reimbursements.

3) I didn't have an airtight scope of work, which may have been my biggest error. Next time I will plan and prioritize literally every single thing I need to buy and do. I will have a sheaf of spreadsheets that I will consult every three minutes and I will be proud of my organization. My planning was way too loosey-goosey and I am lucky I didn't land into big trouble either financially or with the rehab. 

4) I undervalued having a contractor manage the project instead of me. I thought I could manage the rehab 100 percent myself and even do some of the simpler projects and save money. Well, without owning all the tools a contractor will have in the back of his truck, I think it was just as expensive doing it myself because of the millions of Home Depot runs I had to make, and how slow I was. And I underestimated how much upper-body strength, patience, and experience you have to have to perform this kind of work, even things I thought were simple, like installing floating flooring and tiling a bathroom floor or backsplash. And being on the job site all day every single day was tiring.  

Loading replies...