All Forum Posts by: James Dainard

@Nik Moushon At the time the home was listed, the price was based on a couple other comps in the area that were probably listed a little too high.  We put a lot of work into this property though, it had really nice finishes and good quality craftsmanship.  One of the factors that I put into my pricing, is the level of upkeep that will be required from the buyer.  This home was done well, with limited upkeep that would be needed over the next 10-15 years, which will save the buyers a lot of money later on.  

Looking back now, I can see that it was listed too high, but hindsight is always 20/20.  Elevated pricing mixed with a market change, ended up with a house that sat on the market for a lot longer than I was expecting, and sold for a lot less than I was expecting. Although this is a bummer for me, it gives me valuable insight to pass along to my clients that are now navigating a new market. 

I deal exclusively in the Puget Sound area,  I can't speak much for the Tri-Cities, but a lot of areas have been seeing growth as buyers are pushed out of the Seattle market.  It's going to be interesting to see what happens across the state in 2019. 

Investment Info:

Single-family residence fix & flip investment in Kirkland.

Purchase price: $355,000
Cash invested: $100,000
Sale price: $643,000

Fully updated Kirkland rambler Perfectly situated on a quiet cul de sac with gorgeous mature trees. Inviting open living space perfect for entertaining. Stylish kitchen with stainless steel appliances, gas range, shaker cabinets & quartz countertops.

What made you interested in investing in this type of deal?

I bought this house when the market was at its peak, the area was selling really well.

How did you add value to the deal?

The house needed a major renovation, all the finishes, the floor, the walls, everything needed to be updated.

What was the outcome?

The house went on the market right as the Seattle market was starting to slow down. It ended up sitting on the market for 96 days, which was basically an eternity after the record 5-day closings we had gotten used to in the area. Originally I had listed the house for $799,950 and it ended up selling for $643,000.

Lessons learned? Challenges?

You can never predict when the market is going to change. I had done everything right, stuck to my budget, and when I didn't price the home correctly combined with a market turn, it cost me a lot more money in carrying costs.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Intrust Funding was my hard cash lender.

@Shiraz Ali The market has definitely slowed in WA, as it has around the country, Seattle is seeing some of the biggest drops mostly because it saw some of the biggest booms in pricing.  This time of year as the holidays are coming up, it's going to be slower.  However, the economy is still going strong, and it doesn't seem to be slowing down, which means buyers will still be in the market.  As mentioned earlier, interest rates are forcing some buyers into different price points.  Most importantly, buyers aren't going to keep overpaying for homes.  I've found that my properties that are priced correctly are still selling quickly and for profit.  

The best advice I can give for flippers in this market is to design homes based on what buyers want, not what you think will look nice.  The most important factor to this is staying on budget. Don't blow your budget with finishes that are nicer, but not what buyers want.  Study the current trends and go for a design that will appeal to what people want. 

@Brian Olson Just catching up to this thread, I have multiple cash flow properties in the Puget Sound region.  I would love to connect with you and discuss different areas.  The market is changing right now but I've been working in this area for over 10 years and have had a lot of success, it just takes some digging! 

@Cary Westerbeck I exclusively work with Intrust Funding, they make the process very simple and easy, and they're local in Bellevue.  If you give them a call they'll chat with you about your options and they'll be able to help you.  

@Nicholas Meyer Intrust Funding has been great for all of my flips, I can't speak highly enough of them. 

Hi Bigger Pockets! Heaton Dainard real estate and Intrust Funding are hosting our free an Investor 101 class on Monday, December 3rd to talk about the basics of investing in real estate, flips, and cash flow properties. We understand this is a busy time as the holiday season kicks off, so this will be our last class until 2019.

 It is a great chance to learn about real estate from our experts, who will give real examples and talk about their experience with real estate in the Puget Sound region. It's a wonderful opportunity to network with other potential investors as well as ask questions and speak directly to our team of experienced brokers and investors.

If you would like to attend, please register here...Investor 101 Class, and a member of our team will reach out to you with further information. 

Last week we had a lot of new faces from the Bigger Pockets community and we would love to have even more on December 3rd! If you can't make it, stay tuned and we'll be announcing our 2019 schedule after the holiday season.  

Look forward to meeting you on Monday! 

James

@Alexander Felice I agree, you have to be diligent in vetting people, I rely heavily on referrals, and I try to refer good contractors whenever I can.  One of the biggest issues my clients have been having, is contractors who don't do a job well.  Then, the contractors disappear when it's time to come back and fix bad workmanship.  Essentially, these guys are stealing, by taking off with money before the job is done to completion.  I encourage my clients to give smaller down payments and withhold final payment until the job is complete.  

@Account Closed I am curious what everyone's process is for finding good contractors! 

Thanks to everyone who stopped by last night! I had something come up last minute and couldn't make it.  But, my colleagues are very experienced and did a great job stepping in for me! If you couldn't make it last night, my next class is December 3rd.  I'll post another event here, feel free to sign up! 

Hey @Sindhu Jakka I would recommend Intrust Funding.  I use them for all of my financing.  I don't know the specifics of the loan you're looking for, but if you call them they can help you! 

One of the most common questions I get from my clients is, "What do I do when my contractor doesn't call me back, and doesn't show up to finish the job."  I did an entire webinar series on how to deal with contractors.  Just wondering from the BP community, what questions do you have about contractors? How do you deal with contractors when they don't show up for the job?