All Forum Posts by: Kama Ward

In my area it's $200 for the smallest up to $400 for the biggest (sorry i don't know the yards). Some you can keep for two weeks, some as long as you need. It shows up, we throw stuff in, and it goes away.
I wish every part of renovation was this easy and cheap!

My other favorites are window cleaning- about $150 per house and professional pics- $99 for tons pf great photos and an online slideshow.

Seems like you are paying way too much. Are dump fees in Washington super high?

Rich, I don't want to drive any of your cars. But I do think the best things for the summit would be to move to different areas of the country- as long as Josh et al. has their sea legs about it. I wouldn't mind another one at Denver. Just no snow please!

Jim M. If you were asking me that question, I'd say it's a continuation of the trend over the last 15 yrs of close in city neighborhoods (that are at least relatively safe). We have no unsafe areas like in larger cities in NC. Also under and up to the median price homes. In our area it's under 200K. It slows down until 400K is pretty dead. Historic areas can be in there!

I just put my in city rehab on the market on friday (3/1 1135sqft 187,500) and have one cash offer and another one coming this evening. Yay!

The burbs have a bit longer to go. My parent's neighborhood in Durham's burbs has moved solidly from all professional to (solid safe) blue collar in the last several years. So my guess is closer and cheaper wins. Gas is killing land prices out of town (usually desirable due to mountain views).

Adjusting your strategy is important, but it's also important to reassure yourself about the fundamentals.
Will people always get into financial troubles? Will they always need to move, divorce, or inherit a house? Are houses degenerating every day form the day they are built? Will people always defer maintenance? Will interior trends and even functions always change? Yes! So flipping will always be around.

I put conservative numbers out. I always try to be surprised in a good way rather than bad. Maybe I can get 80sqft build, and on the sell side it's a bit higher than 170, so I rounded down.

Joel Owens I thought that someone might comment on the 7 months time frame. I would list before completion, but I feel that seven months to close is again realistic if not conservative.

Right now stuff is selling at 97% asking, (not sure DOM for new construction). The market is flat, but supply is down (for all houses- not new). I expect this to translate into steady sales and no increase through 2012. Our entire market is small (city pop under 85k), it's pretty easy to keep track of the players. The permits/ new builds are limited in this neighborhood due to limited empty lots. I only know of one tear down/new build in the area (that house was halfway falling down). The market is not ready for that yet, and I'm doubtful it will get there in the next decade.

But come to think of it rehabs are even more scarce than new builds here, so maybe I should stick to that!

I'll let you know what I find out on Tues.

ps. Will Barnard I really loved your presentation at BP but did not get to meet you so I'll say thanks now!

Thanks for all these questions!

Jim M. The 100-105 quote was from a different builder. He does the financing. The realtor has not done many (if any) specs. She paid 150K for the house and four extra lots. The house (my guess) would be worth 90-115K with no extra lots. It will be worth 190-200K when renovated. The thing I am most sure of is that those lots are worth 30K each.

Bill Gulley- This is an infill neighborhood, most home from the 1920's. 40% rehabbed. 15% new green construction. The are no restrictions, no HOA. It is zoned either rs8 or rm8. I am going to get a flat price- NO way cost plus!!!! I will ask your other questions and visit a property or two (if it gets that far).

Will Barnard - I feel very comfortable about the location. I know this neighborhood well- 1 block from my just finished rehab. Will not overbuild. In fact, I saw it when it was originally listed would have bought it myself but did not want to overextend. I do have several subs I like and some would be able to give me good bids but some are only old house people. Had not thought of an environmental report, thanks!

Looking at my (other builder) 105psqft build price and 170psqft sale price, is this enough of a spread to make a profit?
land-30K
build- 1500sqft 105K= 157,500 4months start to list, 3 months list to sale
sell- 170psft= 255,000 (I usually would do $500flat fee+ 3% to buyer's agent but maybe not in this case)
67,500 minus hold and sell costs= ?

I'm meeting with a builder Tuesday morning about building two spec homes. My listing agent for another deal bought a house with four extra lots on it. She said she has another money person who wants to build on two and do I want to do the other two? I do not know this agent well. She suggested the builder.

I'm naturally cautious about these things, but want to check out what they are proposing.

What questions should I be asking during this meeting?

Here are a few details. The lots are worth about 30K each (i'm sure of this). The area is desirable with new homes being built on infill lots. These lots are flat with street frontage in the city. Almost all the new homes built in this area are 'green'. The price extremes are 175K to 350K. Most new home sell for 225-275 and are in the 1300-1600sqft range. I had previously talked with a different builder- who has a excellent reputation from multiple trusted sources and builds in the area- about building a green home with low grade but acceptable finishes. He quoted 100-105sq ft. This is lower than the finishes you would want for the best sale.

The builder I'm meeting is based in the next county over (30-40 min driving). This market is devastated compared to mine. His website shows high end homes built for a different older, more conservative buyer. No mention of green. This makes sense for that market and that my realtor would have a relationship with him, she was based in that county for many years.

My realtor mentioned a 50-50 split and that I would not pay for the lot until closing. This was in passing while we were talking other unrelated matters, so I didn't get the details. I don't like the sound of it.

What criteria would you need to go forward with this deal?

Thanks for the help. If you send me the questions, I promise I will ask every one and report back on what they say. That should be a good learning experience!

I would say that some houses settle some then settle no more-- but I rehab/have lived in much older homes (the one I just finished is 1911) and have seen movement even after many years and some repairs. I haven't seen them move after full very expensive repairs though. So be cautious on "it's already settled"-- it is sometimes a rationalization to do less than what's really needed or to make a thin deal seem like it will work.

On the other hand, most engineers and inspectors make every little thing sound big to cover their butts on liability. Maybe repairing the drywall is fine! Talk to a couple of contractors that you trust, or several that you don't trust!

Buyer of older homes here (pre 50's) do not expect level floors (within reason).

@Mark- I hate orange peel!! Hope it works for you though.

Jonna- Nice to meet you and get to know you, too! And Nancy and Holly and Amanda and Chris... Even with the hiccups it was great. I bet the Bubba Gump ladies had fun too!

Tahani- We would have Loved to have you!! Next year for sure! Your presentation was inspiring. I kept saying to myself "don't make me cry, don't make me cry"- lucky I had a tissue. Ha!

Maybe next year we can get it on the program so everyone will know about it. This time I just said "Who's up for a women's lunch!?"- an informal last minute thing.