The Details on My Last Flip.
I bought this house for $85,000. We closed on the home on February 4, 2009. I used a hard money lender so the total closing costs were around $10,000. I put about $40,000 into repairs. The repairs included: digging up the foundation, resealing it and installing better drainage, stripping out most of the drywall on the lower level and replacing it, gutting the bathrooms to the studs and redoing them, complete redo on the kitchen, new floor coverings (ceramic tile in the kitchen and baths and carpet everywhere else), new appliances, light fixtures, landscaping, etc. The rehab took about 5 weeks.
In less than a week after having listed the home I had two offers. I ended up selecting and ratifying an offer at $187,200. After I pay my share of the closing costs and the other realtor, I will net about $40,000.
See more before and after pics of this project on my site under the title "Last Flip." or just go to: http://www.biggerpockets.com/galleries/show/2552
It is getting much tough to find deals like this, but I have managed to secure 2 more. The first one is in Annandale VA. My price for it is $225,000. I expect to spend approx $45,000 to rehab it and I will sell it for over $400,000. The second home is in Manassas VA. My price is $104,600. I will spend approx $60,000 to fix it up and then I will sell it for $250,000.
The market is getting almost hot out here. I see multiple offers and bidding situations again. The market was just way too undervalued. The down side is it’s getting much tough to find the deals. I hate to say I told you so, but I told you so.
Comments (2)
No, I'm not a go it alone investor. Investing, like life, is a team sport. I find that specialization leads to more deals and greater productivity. I have an MBA, a real estate license, and an background in construction management and oversight. I hire good contractors to do the work and I look for help from cash partners to allow me to capture more deals. I'm not afraid of giving away a portion of profit to capture additional deals. And, I'll tell you when you do things right things just start falling into place. I have built a pretty good network of people bringing me deals and I have built a reputation as a guy who can get deals closed. That is your life blood in this business. You have got to be able to deliver on your promises. I have been doing this and now I have more amazing deals than I can handle. I am currently busy looking for additional investors and partners to help me so I don't have to turn away any deals. Give me a call or email me and I'll talk your ear off about what you should be doing on moving forward.
Justin Pierce, over 15 years ago
Nice post! I'm a newbie at real estate investing and love hearing stories like yours. I'm prepared to do the research to discover and work deals like those you described. Do you work with partner/investor or are you going it alone? So far I'm only armed with good credit, a real estate license and a good friend who owns a title company. My strategy is to flip houses if I can get a reliable construction crew together. Any suggestions on moving forward?
Terrell Williams, over 15 years ago