Results: Potential Property

To continue in following up with The Action Plan, The Fine Details, and Taking Action posts, I am reporting on the results of my efforts.

I have found a great Real-Estate team that are very experienced and have been involved in Real Estate investing themselves. They have done flips and also own several properties that they rent. They have been an incredible resource and they are a team member I am supremely grateful for.

I have also settled on a General Contractor that I like. He is experienced in doing whole-home renovations and is currently looking to rapidly expand his business. It's a perfect opportunity to work with a hungry contractor and develop a mutually beneficial relationship. I am having lunch with him today to clarify a few more details and see if he is available to walk through a property that I've found.

Finally, I have found a Financer that is willing to do fund me for the deals that I do. His terms are great and his honesty and professionalism is fantastic. I look forward to evangelizing his services after the successful completion of this first flip to all of BiggerPockets. 

I have also found a foreclosure property that fits my criteria and is in my target specifications. It has mold damage, a leaky roof, and all of the copper plumbing was stolen out of the home. The home was part of an inheritance that wasn't paid on and Freddie Mac repossessed the home. It's a 3 br/1.5 ba house with about 1700 sq. ft. on an excellently located neighborhood. With the damages that have been made to the house, I am confident that the offer I've formulated will be accepted. As a hopeful sneak peak, the estimated profit margin for this house (if completed on schedule, on budget, and with a reasonable time on market, yes you can laugh) would be $49K. This is a perfect way to start my REI venture and I look forward to developing the relationships needed to increase the velocity of my business substantially in the coming year. 

The last real question that I need to ask is whether or not now is the right time to buy. I anticipate the closing time will take 10 days, which puts my anticipated 8 week schedule (I'm telling the GC 6-7 weeks, allowing a week for unanticipated issues to hold up the schedule) to resell the house in November, an historically bad month to sell properties in my area. I'm reviewing this with my Real Estate agent team and determining if I should hold off for a few months so that I can list my properties during the Spring fever of buying that normally occurs.

Anyways, this is my report on the work that I've done. I'll be following up later this week with the results of my meetings and the decision of whether or not to pull the trigger on the property that I've found.