First 2 flip projects - Pleasant Nightmares!!

[Rafael Norat]

So I coined my own term “Pleasant Nightmare” after a started my first 2 flips.

One in Sparta, NJ

• Bought it for $175k
• Rehab budget $125k
• Should sell for $425k

One in Hillside, NJ

• Bought it for $95k
• Rehab budget $35k
• Should sell for $220k

I have 2 partners. What’s interesting is that I’ve been reading the E-Myth along the way, which discusses your 3 basic business owner personalities:

1. The Entrepreneur
2. The Manager
3. The Technician

Any business must balance these 3 well. We have naturally each taken a role based on our own backgrounds and personalities.

I take on the Entrepreneur role, as I envision

1. 2 houses flipped year 1
2. 5 house year 2
3. 10 houses year 3

We have our 2 flip projects now acquired in June and set to be on market by September

My partner Lynn takes on the Manager role. She is essentially the site manager and does all the day to day stuff, babysits the contractors (for a part literally!), and reports to myself and Steve (The Technician).

And Steve is the Technician. He knows how to build from the studs up. Lynn consults with him reviewing the task items, assessing the contractors work, any changes needed,…

So, together, we each take a personality and try to balance the business growth as much as possible.

So I coined “Pleasant Nightmares” based on all the mishaps we have had along the way here in our first journey together. TOO MANY TO LIST! We have gone through 3 contractors on the Sparta job, received a fine for the contractor opening up a wall improperly, watched contractors come to work 1pm, completed tasks out of order which holds work up, had days where no work is done costing us money!!

That’s the nightmare side.. Now the pleasant..

We bought it at the right price to take these hits, learn, and still make money.

My partner was about to spend $25k on a flipping program. Nothing against that, but she essentially invested that in these 2 projects and is learning tons! We, together, are learning, making money, and building a great network of workers to get us through the present and help us build the future.

Bottom-line: I think you need “pleasant nightmares” to grow, expand, challenge yourself, and ultimately create what you envision. Mitigate your risk by surrounding yourself with people you know and trust. Fear will always lurk where there’s risk. But financial freedom doesn’t come through absolute security. Otherwise, everyone would be free!!

[Rafael Norat]

@Ricky Butler Hillside is under contract and Sparta we are still awaiting. The work done on Sparta was not up to par with that area. So, that one is going to cost us a bit on the end. Definitely looking to tighten things up a bit in terms of contracts and contractors. And only one at a time next time!

@Karen O.These are some tough lessons Karen. Nobody likes losing money. But, you need to keep your mind focused on growing and surround yourself within good environment of positivity and aspirations. I met my partners along the way. Its been a great lesson in working together and dividing roles.