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All Forum Posts by: Alex Applebee

Alex Applebee has started 8 posts and replied 79 times.

Post: My first flip at 26, a woman, ZERO construction skills.

Alex ApplebeePosted
  • Investor
  • Versailles, ky
  • Posts 82
  • Votes 167
Originally posted by @Braden Hobbs:

@Alex Applebee

 Great job! I too got my real estate license for the same reasons you did. Would you mind answering a couple questions?

1. It sounds like you bought all the materials. How was your arrangement with your subs in terms of materials? Did you meet with them and discuss the job and they told you the materials they needed you to buy? How did you know what to buy being you had no experience beforehand?

2. How did you find other finished flips to go look at? 

 It varied from sub to sub. I NO LONGER DO THIS (mostly), but I am glad I did at first because I learned the real costs of materials. They would give me a list and I'd go to home depot and get it (having people load and unload for me), or I'd get it delivered. I also on one of my bad subs had him go get it at home deopt and then he'd call and I'd pay over the phone. Worked until I was lax about checking receipts. Then he started buying extra stuff on my dime.

So now what I do is make the subs include materials in their bids. They waste far less materials when it is on their dime. One exception is an amazing painter I found, I'll go pick up paint for him, but thats about it.

In regards to other flips to walk through: knew a couple flippers in my home town and walked through their projects in various stages. In phoenix the area I bought this house in has a lot of flippers, and some of them post signs like "project by xyz investment company", also walking through tenos and talking to the realtor to get the story. With my MLS access I can look st a property and see if it was recently sold for cheap and now is on the market at twice the price and renovated, it is a good bet it is a flip, so I'd walk through and maybe call the realtor. Flips are easy to spot vs home owner reno. One realtor was also the investor as well and had been barely outbid by me on my property! Lol

Post: My first flip at 26, a woman, ZERO construction skills.

Alex ApplebeePosted
  • Investor
  • Versailles, ky
  • Posts 82
  • Votes 167
Originally posted by @Nicola Harvey:

Wow @Alex Applebee! This is super impressive! Kudos to you! I am not sure if you answered these questions I am about to ask because there were sooo many pages of replies due to your posts popularity, that I may have missed but here goes!

How did you decide on the actual finishes on the project? Things like your actual plan in what walls to hit down etc to make the kitchen larger etc and the trims and finishes in kitchen, bathroom etc? Did you know exactly wanted you wanted or did you help professional/advice?

Also the private lender you mentioned, that seems to be a great interest rate, was it family/friend or an actual hard money lender?

For the layout: I thought of what I would want in a house and I knew I wanted some specific things. I'd need a master bedroom, bathroom, and a walk in closet. I wanted an open feeling where you had easy access to your back yard area through french doors. 

From the city of phx assessor site there was a site map of the property and the house. So I had basically a blank layout of the house's exterior walls. I printed a bunch of copies out and I spent an afternoon drawing out some different floorplan options. I then spent the time I was sitting around waiting on subs bidding work and I measured out my ideas and picked the one that was the least work and big impact. I quickly found only a few options made sense. 

Lender was a family member. 

Post: My first flip at 26, a woman, ZERO construction skills.

Alex ApplebeePosted
  • Investor
  • Versailles, ky
  • Posts 82
  • Votes 167
Originally posted by @Orlando Spencer:

Great job, you're so right about buying low enough to cover yourself for profit! Your experience will definitely inspire many. 1 question, did you feel it necessary to pay for a property inspection before closing? That's one of those expenses I grudgingly pay if they don't discover anything more thanI found alone.

 I did not have a property inspection. I did have a worry about some cracking around the house (I think it scared some others away). I read up a lot on that enough to be confident moving forward with the house, and to be sure I had a structural engineer our for $300 to make sure there was no foundation issues, which there were none.

Post: My first flip at 26, a woman, ZERO construction skills.

Alex ApplebeePosted
  • Investor
  • Versailles, ky
  • Posts 82
  • Votes 167
Originally posted by @Mike McKinzie:
Originally posted by @Emily T.:

I'm sorry, why do you point out that you are a woman? Is it supposed to be harder for us? Because we are stupid?

 Emily, I think you need to rethink your suppositions.  My mother did her Master's Thesis on "Why men enter the Nursing Field."  This was back in the 1970's when few men entered the Nursing Field.  Was she being a "sexist" for researching this subject?  Not at all, it was just a field with 95%+ females (3.9% males in 1970) and males were rare in the field.  Today, males nurses make up almost 10% of the Nurse population.

When a woman plays in the NFL or MLS or NBA or NHL for the first time, it will be HUGE news! When a woman becomes the President of the United States, it will be HUGE news.

Women can do ANYTHING a man can do, but societal morals and mores have prevented woman from some fields.  And women are breaking down those barriers, DAILY.  MORE power to them!

@Alex Applebee, a huge CONGRATULATIONS on your First Flip.  And also, HUGE respect for your composure to those "negative posters" on this thread.

Another huge congratulations for having the courage to DEMO bad work and replace it with quality work.  Most flippers would just cover it up and move on.  We had a custom home built and didn't catch the builder putting plain drywall in the shower, behind the tile, and a short five years later, we had to tear out the entire shower and install the proper backer board.  Luckily, we threatened the builder and his insurance company paid for the repair, which came to almost $15,000.00.  We HATED using the original builder, but unfortunately, the developer had sold the lot we wanted to this idiot builder because the developer needed the funds.  But that is another story.

A couple of hints that might help in the future.  And maybe you did this, but I always get several referrals BEFORE contracting with any construction work.  I have contacts for everything from a clogged toilet up to installing a new roof and rewiring an entire house.  All of my contacts come from active Realtors, active General Contractors, active Flippers and active Property Managers.  You stated you have your RE License so I was wondering if you are working for a Broker?  If so, be sure to find out which Realtors are busy in the Flipping and Building arena, they can be great resources.

The two main PILLARS to successful Flipping is to BUY RIGHT and to CONTRACT RIGHT.  And Contracting Right doesn't always mean the CHEAPEST price.  If you pay a little too much, you only lose a little, but if you pay a little too little, you lose EVERYTHING, because then you have to tear it out and redo it.  For example, if a job should cost $18,000.00 and you get two bids, one for $15,000 and one for $20,000, many times, the $20,000 bid will be cheaper because it will be done right and on time, where the $15,000 job could cost another $10,000 just to fix it and be much longer in finishing.

Finally, did you ever consider filing a Small Claims action against the poor sub?  Were they state licensed?  If so, you can file with the state against them.  Did you put an online review of their work?  I am just curious if you pursued any recourse against them?

So, GREAT Job Alex!  And have fun in Santa Barbara, it is a little more expensive there than Phoenix.  But, with the higher price can come higher profits!

 I agree with everything you said in this. Also and interesting side note, my husband used to be a nurse (and I was a respiratory therapist). So we are both bucking the trend.

I found an investor friendly broker in AZ. I will do the same in CA when I am ready to roll out here. The two pillars you mention, so correct, and if you have those you have a success. I can't wait to get a project out here. I want to pull in 6 figures on a flip in the next year. 

Post: My first flip at 26, a woman, ZERO construction skills.

Alex ApplebeePosted
  • Investor
  • Versailles, ky
  • Posts 82
  • Votes 167

I just wanted to say thank you to everyone for your kind words on this thread. I hope it helps people out the way other people's success stories helped and inspired me. 

Post: My first flip at 26, a woman, ZERO construction skills.

Alex ApplebeePosted
  • Investor
  • Versailles, ky
  • Posts 82
  • Votes 167
Originally posted by @Brenda A.:

Thanks so much for this post.  I'm new and have been reading a lot too.  I have gotten so many emails from gurus and scam artist that I was beginning to feel overwhelmed and like I should just quit.  Then this morning I got this email from BP with your story and now I feel refreshed and encouraged.  Great job on your flip!  I'm in CA and I know it's possible to make money doing this I just needed to hear it from someone like me, a female.  Great job!!!

 Thanks! It is hard to filter out all the people trying to sell you something (it even happens at investor clubs) but you'll learn. It is so doable.

Post: My first flip at 26, a woman, ZERO construction skills.

Alex ApplebeePosted
  • Investor
  • Versailles, ky
  • Posts 82
  • Votes 167
Originally posted by @Nicholas Moffett:
Originally posted by @Alex Applebee:
you dont need a partner or a mentor when you have cash sweetheart.

I never asked for a partner or a mentor.  You really need to stop being rude to people.  Im right, shes wrong, thats the facts.  Sry about your luck 

Oh, my mistake, I must have misinterpreted your post. Linked and copied bellow for those interested. 

 http://www.biggerpockets.com/forums/432/topics/217...

"After all my research I have come to 1 realization, Im 26, I have under 200k in the bank and I have no experience in multi family deals or managing but it's what I really wanna do I live in Clearwater/Saint Petersburg FLORIDA and my goal is to own my first big multi family by the time I am 30, however I cant find a true guiding light to learn this business.

What would ( an experienced) multi family guy tell me to do first?
And please, no (keep your head, up, work hard, be poractive crap)

I need step by step ..... ABC 1-2-3

My first idea is to try to apply for a job managing a complex, however being hired with no experience will be a sales feat IDK if I can master without some good advice. Need Help ! "

Post: My first flip at 26, a woman, ZERO construction skills.

Alex ApplebeePosted
  • Investor
  • Versailles, ky
  • Posts 82
  • Votes 167
Originally posted by @Carrie Giordano:

@Alex Applebee very cool! I love the small touches that made it your own like the stained glass window. Other than the prices being more affordable what made you choose Phoenix over something local? Will you continue to work in AZ or do a project in CA? 

 At the time I was living in hell...pardon me, Phoenix due to some family obligations on my husband's side. I lived there for four years and had learned the market. Also it was agreed with my family member/investor I should get my feet wet out there and prove myself before jumping into CA projects and their higher price tag. 

Post: My first flip at 26, a woman, ZERO construction skills.

Alex ApplebeePosted
  • Investor
  • Versailles, ky
  • Posts 82
  • Votes 167
Originally posted by @Mike DeLeo:

@Alex Applebee     Congrats on getting the job done and coming out on top. I am a newbie and love hearing success stories of others.
Were you working full time during the 6 months of rehab on the property or was this your FT job?

Do you want to flip something similar again, but just do it better and more profitable at it, or will you venture into something a bit larger?

Mike

 The rehab was my full time job. I have completed the renovation on a second flip, it is currently in escrow. When it is complete I will post pictures and numbers. Not quite the success of this one, but I still made money. I went into a higher end neighborhood, but should have stuck to the area where my first flip was. I will post about it down the road. 

I have moved back to CA since then and will find a flip here soon.

what a transformation!