All Forum Posts by: Don Hines

Hind sight is always better. I agree with Jon. You always want to rehab the ugliest house not the house next to it.
Been there too. My first rehab a couple of years ago, I was mowing three other yards besides mine while on market. I was their best freind.
Good Luck.
Don

Good luck trying to find out anything from BOA. You will probably need to wait until it is listed on the MLS. That might take years. I have watched similar properties for a couple of years or more and have wondered when they will be on the market.
Don

Hey Ray
I hate that I have too many comitments already in March for the summit. Go pick these guys brains and learn a lot then come show me so we can bust Little Rock wide open this year.
Don

I am very proud to enter this conversation this month. I finished a marathon rehab Jan 22. I put a sign infront of it and got some free traffic from the neighbor's ad in the paper. When that traffic dried up, I listed it with a flat fee service about Feb 15th. We did our second open house Feb 19th and got two offers. I put it under contract on the 23rd and closing is scheduled March 19.
Yippee!!! Rinse and repeat.
Don

I ain't in the rental business. But, I am finding out that no tub in the master bath is an issue in a flip. I was real proud of the new shower I installed in my most recent one. I had some negative comments because it was a shower only. I could have put a tub in just as easy.
Just me, but, I can't imagine a 3bdrm without a tub.
Don

Good Advice Bill!!

Steve, Back in the '70s and '80s, it was always easier for me to find a way to make money than it was my buddies. I don't have a single one left now because of our failed partnerships similar to the one you have mentioned here. I learned that you don't ever, ever ever, enter into a partnership with someone else's knowledge and your money. I always lost.
Someone else said the knowledge here is in the deal not the rehab. If I could ever get that to sink in to my own hardhead....
Don

Both of your questions have the same answer.....
Know what you are doing!!!!
I would never target anything less than $20k in profit because I have yet to be under budget upon completion. If I would not have, I wouldn't even make the $15k spread because of stuff I over spent on. I have changed my stratagy a little to compensate by adding a 20% contengency to the rehab rather than the widely suggested 10%.
I have done rehabs with and without a pro inspection. But, never without the contingency. I wasn't happy with the answers I got from a pro (for the money) and have sweated it out because of stuff I missed when I was the inspector.
I am just now re-entering the market after a year. But, I know there will probably be many offers before I purchase my next deal because of the very same reasons you mentioned. A deal has to be good for me before I close on it.
Don

I agree more with Sharon's reply. I see those TV flippers say "these $5000 cabinets will raise my value up $10k".
I just spent $5000 on cabinets because the original cabinets were crap. I don't think they added to the value of the property. Just brought it up to where it is supposed to be. Maybe they added over $100k in value because the house was not going to sell with the original ones. Either way I am subtracting $5000 from my price to figure my profits.
Don

Thanks for all of the replies. Both offers came to me with prequalified clients. I really wrestled with a decision because the full offer and $0 earnest just didn't feel right. I made my decision to counter the 1st offer and split the difference between their offer and my asking price. Before I could contact the realtor , the realtor representing the full price $0 earnest called me and told me her client had backed out. So, the decision turned out not to be mine of which one to go with.
It even gets better. #1 decided after I countered that she wanted more assistance and countered my counter with almost full price, but more assistance. The deal puts $500 more to my net than my counter. So, it really is a Happy Day!!
Don

That's right Jon. How many times have I been on the other end of that statement?
I officially put it on the market with an open house on Jan 22nd. It was a rainy weekend and the play offs were going on. We had some activity, but most were neighbors. So, I bought a flat fee MLS listing Feb 9th.
We decided the 18th would be the best for a second open house. We must have shown it to at least 8 couples with 3 being represented by realators.
Don