All Forum Posts by: Jason McVey

@Erin Elam Hey Erin, These are rounded numbers but this is the overall Purchase with CC was 107,500.00 Flooring 3800 Roofing 800 Bathrooms 3000 Kitchen 1800 Appliances 500 Windows 2000 Doors 800 AC 5000 Loan 6300 Tools 2000 Lighting 200 Rock 800 Paint 1500 $28,500 rehab and loan offer was $167,000 with $8,000 in concessions so really 159,000 and then right around 10k even on profit. the loan had no fees but 12% Interest.

Originally posted by @Debra Thomson:

@Carson Wilcox. I love how well you speak about your realtor. Many of us want to be part of the team. We aren’t just here for a buck. A great realtor will be a huge asset. I hope to find a great flipper to have a cohesive business relationship with. Fun to follow your path here. Thanks for sharing!

 I love the team aspect! Ive been asked why I don't go get my license for real estate, but I feel like I'm better staying in my lane and letting my realtor do his thing. 

Originally posted by @Anthony McEvoy:

Congrats @Jason McVey!  Do you have any pictures to attach?  What are some of the lesson you learned?

 Lessons! There were a lot...

Material/spending: In some areas its better to spend more! I had the idea of trying to save money and keep the flooring in the kitchen and then I was gonna do other flooring in the the rest of the house, but then I would have 3 different types of flooring...so initially we didn't demo the floor but  then decided to replace it all so we wasted some time and efficiency here.  In the kitchen I was gonna keep the kitchen cabinets but found water damage, so then I went on the lower end and bought base home depot cabinets that were unfinished. This did save money, but it added a lot of time because I bought clearance cabinets, so then had to drive around to make a full set, then I had to paint them...I would have saved time and effort by just buying RTA or mid range cabinets.

Time is Money! I wanted to save money on labor and did 90 percent of the work myself, but my schedule is always crazy. My full-time career is as a Firefighter, I coached my sons little league throughout the rehab so my days at the house weren't always consistent. I would have been better off sub ing work out and getting it done in 6-8 weeks instead of 16 weeks.

I had to put 20% down, but moving forward I would like to put less in the deal, and I will utilize a lender that finances the rehab costs as well. I had all my eggs in this basket so I couldn't move on until this was sold. This was good on this house because I needed to get the hang of the process but moving forward id like to start the next one as one is finishing up.

The QSP seemed so confusing to me as well! I found that there were two ladies at the pro desk that were dialed in and knew the program inside and out. Then the were many other attempts where I got a different cashier and it was like we were speaking another language when I showed them my QSP sheet with the items I wanted to take that day. 

From what I learned in my first flip, is take the time to do one large QSP with EVERYTHING you'll need. It will save time in the long run and the more items on the QSP the more discount they can apply. I did two separate one and the first was with one of the gals who really understood it and set it up so I could purchase the items as I went along. The second one I had a different guy at the desk, he was not familiar with it, he set it up as a single purchase and then said he had to do it completely different and it was literally over an hour of sitting at the pro desk waiting for them to figure it out.

As far as purchasing I'd just try to find the one person who understands it and try and learn their schedule and only deal with them. I started letting people go ahead of me and waited so I could deal with the cashier I wanted. 

Overall I saved 2k so it is worth it, but it could run so much more efficiently!

What a journey! Today we wrapped up a LONG almost 9 month project when you include the prep, finance process and flip but we learned a Ton along the way and we are moving forward.

Late 2017, after listening to many podcast the BiggerPockets Podcast 247: How to Buy Your First (or Next) Property by the End of the Year [The 90-Day Challenge!] (thanksBrandon Turner) popped up and like most hour long drives home I listened to it, but this episode lit the fire. I had been gathering bits and pieces of information from each podcast but this one finally got me to my kitchen table figuring out how I could do it.  In mid 2016 my wife and our family had bought a very small 2 bedroom 1 bath and rehabbed it before we moved in, after the rehab and a years time we had around 100k in equity sitting there, sooo we went ahead and began the process to refi cash out 80k.

This moved us on to the deal finding. At that time wholesale and auctions seemed daunting so we mostly scanned the MLS, and zillow multiple times daily and after a we put an offer in for a 2 bed 2 bath with a 1bed 1 bath in the back of the property and got badly outbid! Eventually we found a 3 bed 2 ba just a few mins away from our home and got it.( both are not scary, lol and this is where Ive found my next deals)

For financing we had pulled out the 83k from our residence but needed to figure out the financing for the purchase. I had called a hard money lender and probably sounded like a rambling child! I listened to BiggerPockets Podcast 009: Using Hard Money Lenders to Grow Your Business with Ann Bellamy and figured out how to prepare a proposal and show that I understood what I was getting into and the process move so much smoother. Through  the BP network we found Orchard Funding and Chris Aepli was able to fund our deal. 

We got a 3 bed 2 bath for 104K and began the rehab in march. My buddy and I were convinced we could do all the work ourselves and get an entire rehab done in 2 months....this didn't exactly happen! We made some good progress early on demo, and picking the material etc... and then realized how much more time the fine details and finishing touches took. We ended up passing our 8 week timeline and then ran into previous planned trips, family events etc, and our timeline went way off. There were also some curveballs that we came faced through the rehab. We called in some more family members for help and then got this thing to market in early June.  

The second day we got a full price off at 177k and were beyond excited! Then the next day came and their timeline passed to sign...the panic began and soon we learned that the buyer had found another house they wanted and bailed on ours. From here we spent about a month with healthy amount of showing but no deals. We were getting eager and made a price drop, another two weeks went by and we decided to make another drop. This brought a lot of traffic and led to multiple offers and we reached a deal at 167k.

Over all this was a great experience and was a great deal to learn from and understand the process. We went over our timeline, over our budget and learned a lot of lessons. We ended up profiting a little over 10k, but I really feel the lessons learned will benefit us so much more! 

We are excitedly wrapping this up and in a few days going right into the next flip!