All Forum Posts by: Marcela Hoag

 Agree 100%. 

Theoretically, you could also blend this with hard money if you have people in your private network who want to invest, but don't have the capital to fund the entire project. 

That way you minimize the amount of cash YOU have in the deal, which can make some deals significantly more attractive. 

Besides the bottom line of your cash-on-cash return (or whatever metrics you care about), think about the time value of money. If you can make $50K on a cosmetic flip in 4 months, great. That's a step in the right direction, because if you extrapolate that out, that would be $120K in a year. 

Upon selling, you might position yourself to take advantage of some other deals that come up within that 1 year time frame, so you can have two projects running simultaneously, and so forth and so on. 

Yeah, you COULD make $500K in a year by taking on a massive remodel and adding sq ft, or doing a new build. But cashflow can be just as important to a small business (and your mental health). It's important to grow in a way that is secure, where one project isn't going to make or break you. 

Another option to help you scale would be buying a house to renovate (not just cosmetics), and live in it as a primary, temporarily. Then sell after a couple years so you can protect your capital and reinvest into future projects (or primaries if you want to keep repeating the process). I'm doing that with my husband right now. 

 Did not know that one. What kind of discounts do you usually see from that? 

 Oh wow that sounds like a great deal! How thick was the flooring?

Hello everyone, 

I thought I'd make a quick post for some of the newer investors here in the Greater Seattle and Tacoma areas who need to find affordable solutions to sourcing materials and finishes. Since rates are crazier than ever, holding costs can build up quickly, and it's more important than ever to maximize the value of the materials you're using to maintain your margins!

1. Regardless of where you decide to purchase materials, ask about contractor pricing and make sure that store knows you're a flipper/investor. You can easily save 15%+ by making it known you're a flipper or an investor. This can save you A LOT in the short and long term, especially for big ticket items like flooring, tiling, paint, kitchens/bathrooms, etc.

2. If you're using a contractor, ask what kind of savings they have available at different stores. Since they have a longer history of purchases, they may have access to even bigger discounts than you!

3. There are a variety of stores around the area that sell like new or good quality materials from other construction projects, like Second Use, Habitat for Humanity, and more. Oftentimes, builders end up not using all their materials, and can't return them for a refund. They use these types of stores and organizations to recoup their costs or for tax write-offs. You can find flooring, tile, cabinets, mini-splits, finishes, and more. Recently, my husband and I found brand new high-end tile that was 80% off compared to Floor & Decor. These stores are also great for outfitting your rentals with furniture.

Feel free to add your own tips, and ask me any questions you have! 

Marcela

Welcome aboard!

Congrats on your first big project! 

I'm down in Tacoma right now, if you're ever thinking of investing further south, let me know! Happy to answer any questions you have!

I'm in Seattle, and we avoid the city like the plague. Currently we are focusing on South King County (Des Moines) and Pierce County (Tacoma). Lots of opportunity south and north of Seattle, especially if you're not looking for something turnkey. 

Check out East Tacoma around https://maps.app.goo.gl/WXfByPMTtYq8jqww7. 

There's new developments all around here, nice and quiet neighborhoods.

 Hi Greg,

Have you had professional photos taken for the listing?

 Hi Nathan,

How have you successfully mitigated risk? Super curious, because my husband and I are always dealing with tenants with pets and the associated headaches, haha.