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Good Morning folks, just an update..

Passed on this one.. I had a window of around $8,000 in profit, after EVERYTHING.. Well, my gut tells me, " dont do it".. So, I'm not going ahead with this project.. If I where to hold for a year or two, then maybe, but that wouldn't likely be the case, and I cant come that close to the red tape, or overages on the budget.. I'm sure everyone reliezes that $8,000 can't be spread to far, so, I have to let this one go.. Tuff call, but this is'nt right for me right now.

Hey guys, good morning.

Mike is right on the numbers, and I am aware of them.. I'm using this flip as a learning tool, to get more knowlegde of the whole process. I'm in this to make money, no doubt, but my main concern on this one, is to JUST GET STARTED. Make a name for myself, show what I do, using the " Law Of Attraction ", and get more business.. By no means, dont take it as " I'm rushing ", I have a strict budget, and will be followed. This is my first step to Trumpism, lol..

This is going to be a nice, high quality home, that will be desireable.. Sure, the market might not be right for some, but when folks are looking, they will see mine first. This will be a great bye, for anyone.. You make it desireable, and not just some commercial improvement project, it will sell.. I will be below comps, and the appr, on this home could very well exced the selling price.. I have some excellent marketing strategies, and quality is my game..

So, in the end, r2d246's process is excellent, and very true.. The object is to get started, get it done, and sell it. Then move on to the next one. In the process, I will learn many, many things. And those things are vital to my next move, as I will know what to do, how long it will take, what to expect, product price's, labor stort-cut, and the very important paper work..

I will make profit, might be enough for more tools or something, but in the end, the knowledge is worth thousands of dollars.. And my reputation will bring millions.. :green:

Good Morning charles whitaker, thanks for the input. It's only the 3 top levels, in some spots, but probably 20-30 blocks worth. The foundation is the worst part of the project. I have gathered some brains on this, and told it could be done fairly easy.. I'm looking into the permits today for this, so I know what to expect..

Man I love Mondays :superman:

Good Day and Great Profits

r2d246, awesome post, just awesome..

I'm going to share this with you, because it is just what happened..

I have gotten into this game last November, simply because I am worth more then what employers want to pay me.. My buddy had moved into a pretty run down apartment, and I didnt like seeing him live like that.. So I told him, hey, tell your land-lord to pay for materials, and we can get this place ship-shape.. So, after spending numerous hours tearing out carpet, 5 layer-tile in the kitchen, fixed the cabinets, replacing a ceiling, and half a bed-room, doing custom stuco, and painting, omoung many other "rigging" techniques, I thought UMMMMM, I like this..

I have done work before, like interior simple remodeling, costmetic stuff, for this slum lord I hooked-up with, but his pay was just laughter.. His corner cutting didn't sit well with me, so I left..

Anyways, after we got finished with this apartment, It looked totally differant, and we didnt put that much cash into it, but we did what we where set out to do.. Well, my buddies dad come over to check out the new place, and he was floored.. He him-self owns a painting business, and liked what we did.. So we got to talking, and he offered my buddy and I a business proposal.. He would flat-out finance a deal for us, to start flipping properties.. We had a investor, that didnt want ANYTHING in return, just his investment..

So, we started looking into getting properties.. We went to the court house, got sheriff sale list, and looked at 60 properties.. Did research on them, and then attended the sale. WOW, crazy.. Numbers everywhere, seconds in making desicions and sales are going like fire.. IT WAS CRAZY.,, we just looked at each-other and left.. This was out of our league, at this point in the game..

So we started to just drive around, take numbers, make calls, pondering our next step.. Then, I called a realestate company about a house , "RADON HOUSE", some of you may remember this, as you guys gave me great info.. So we set up a appointment to look at the home, and it just so happens, the realtor is my step-brothers- stepbrother.. Now, I have found my inside guy, he just happened to fall into my palm.. This kid has been working his butt off for me, from day one.. I explained my intenstions, my plans, and my goals, where I wanted to be, and what I expected from him.. So far So good.. He tells me what i should do, what to look for, the ins-and -outs of the numbers game.. Differant financing options for better profits and short-cuts.. He is on-top of his game, and open to conversation, ANYTIME.. This was A HUGE find for my future..

We disected many,many homes, about 3 a week.. We found some that we loved, we found some that where great, but in the end, there was little profit, or the hood was just not profitable, all-in-all, the numbers didn't work for me, or my first flip.. If we crash and burn on the first, we're done with our lender.. BOTTOM LINE.. We need to prove ourselves on the first round, and go from there.

Well, this brings us to the present date.. We have found a home, kinda bad shape, could use some hard work.. The hood is coming into its own, everyone is tidying up their properties, putting new siding on, cleaning the yards, making the street appealing.. I like it.. So, we go throught the property, one that is only available to me, with 2 days to make a offer.. It needs work, alot of labor.. So I ponder, looking at the ins and out, price product, constantly thinking of this home.. I can vision it, I see the potential, I know I can make it work.. The numbers are there, things line up pretty well, and I get to thinking " I'm going to pull the trigger on this one"..

So, we enter our first offer, $8,000 as-is.. Current value is $49,000... Comps are at $80,000-$90,000.. Hey, it needs work.. But lets be kinda funny at first, just for craps and giggles.. We'll give ya $8,000 for it... Well, he didnt think that was to funny, and came back at $25,000.- AS-IS.. Ummm, OK, lets tell him $ 14,000 as is, or $20,000 with the foundation and the porch ripped off, before closing.. Well, he didnt like that one either.. He wont budge from $25,000..... OK, OK, I can get this home, for 50% under current value.. Not to bad?

Then BANG, I call my partner, and he just starts putting things in the negative state.. The foundation needs fixed, the porch needs ripped off, the windows need done.. I know this dude, I told you that those things needed attentsion.. He just really started to find all the negatives about this property.. DUDE, THATS WHY WE ARE IN THIS GAME, we look for these kinds of problems, problems that other investors don't want to mess with, thats where we will make our money.. I got kinda mad, told him bye, call ya later.. So I sit there, face in my hands, just disgusted.. He's right, there is work to be done, and alot at that.. Ummm, lets go over the numbers again, I think to myself.. I cant let this deal go raw on me.. I have to find something here, something that can make things look better.. We do most of the work, contract out the roof, and siding.. We can do windows, I know people that can do foundation repointing and replacement.. We have power guys, carpet guys, plumbing people.. We can make this work.. NOOOO, we WILL make this work..

My wife walks into the office, and asks " whats wrong ".. WHATS WRONG? I said... Whats wrong is me sitting here, trying to get my partner motivated to get this going.. " I cant just sit here doing nothing", if Im going to do this, we need to get started, and start fast.. I told her we need to get this first one done, I dont care about profits right now.. I want to break-even at least.. Profits would be very nice, thats what Im in it for, but right now, I have to make a point of my abilities, my mind, and my disire to make it big in this game.. I need to make my name known, I want recongition.. I WANT TO BE KNOWN.. "It's now or never", I said to her. And she agreed..

I have been working my brain, on a large scale in the last 6 months.. Everything from reading books, ( Find It, Fix IT, Flip It, By Micheal Corbett) and ( Trump Strategies for Real Estate, by George Ross ) these are awesome books... I watch you-tube realestate clips, ( PowerHouse ), every "flip-this-house", "flip-that-house", "real deal", "your first house", " this old house" anything with decor tips, anything pertaining to home contruction to concrete.. I soak up info, knowledge is power, so I never stop learning.. I have prepared myself for this situation.. I have read many, many posts here at this very forum, reading what you folks are doing.. You guys are awesome, I owe alot to you folks for my staying on my feet, and trugding forward, so Thank You, everyone..

Well, tomorrow, We sign the papers to buy this property, upon a good inspection, ( RADON, PEST, STRUCTURE), this will be my first flip and OOOO what a ride it will be..

$25,000 purchase
$35,000 renov, ( alittle high, just in case )
$79,000 opening list ( 1-2% below market )

Get in get out, want to list this by July 10, 07

53 days and counting

Thanks folks for reading, sorry about the long post, but this is the exact meaning of what r2d246 is presenting for us.. And he is right on the nail with it.. GET THE FIRST ONE DONE, THEN DO IT AGAIN

cool 702, being active is key to the business, good job :D

Hey guys, I'm closing in on a deal.. My one concern at this point is the foundation.. The owner was replacing the block in the basement, but I guess he ran out of steam ( money ).. He wasn't to bright, didnt realize cost value.. Anyways, what guildline are to be followed in PA for foundation repair?

This is the biggest problem. But this is the type of stuff we live for, right? Fix it, sell it..

Would this be a big job? See pic, I plan on doing the work myself, with some help, but not contractor worthy.,lol :superman:

Thanks guys

Thanks for the replies guys, charles whitaker, very informitive, I like these..

The current property needs the kitchen to be opened, as it's only 12' * 11', but there is a wall, and another room, could be a dining area.. The wall runs the lengh of the home, ( down the middle ), so is that a load bering wall? My partner thinks that isn't a good idea, becuase it will cost more money
:violin:

I have a PUNCH program, so I will put up the blues for that, just to show you what I mean..

You know what, Im going to keep the hole ( window ) there, and maybe add something stylish, just for natural lighting reasons

IS there need for a permit to remove interior windows. These are the windows that are there, prior to adding on enclosed porch..

Thnaks folks

OK, thanks for the replies folks..

What about Central air?