All Forum Posts by: Mazz Gino

Hey BP, I am a new realtor in Az via NJ where I was an agent for 3+ years. I am starting to hear some undertones in the industry that have me questioning the market environment that we are going into in 2019. I’ve heard that mortgage applications are down, First American Title has started layoffs, Meritage Homes has started layoffs, and I’ve heard that something is going on over at Fidelity. All this chatter leads me to believe that the larger institutional firms are gearing up for some sort of market slowdown. Does anyone have any feedback or insights that they would like to share about what they think we are heading into in the new year?

Interested in hearing our success with mailers. I do mailers here I New Jersey but I do commercial real estate. I've been tracking my progress now for 1 month and I've found that I have a 35% response rate. All responses are positive. I haven't gotten any negative responses because I figure that they won't even respond if there is no interest. The properties that I target are all properties a a traffic lighted hard intersection. My results will probably differ because I am a developer and I feel that many people are interested in seeing what a developer has to offer. I do fix and flips in arizona and would love to be put on your email list for investors. When you do get inventory I would love to check it out. I've did my first AZ residential project in Chandler these past 4 months. Hungry for more deals. Feel free to dm me so we can exchange emails and phone number.

I've got a great team that I work with in the Chandler area. I jut finished a project with them last month. Great quality workmanship. Fast turn around. Fair pricing. I'd like to send you their contact. Can you dm m so I can send all the contact info over?

Ok everyone so here are the final results. 

Not too bad for my first flip but I would like to see closer to 15% ROI on my next one. I see that the national average for flips is a profit of $50+/- K. Not sure how they computed that average i.e size go homes, dollar cost of homes, etc..

Lessons learned:

Don't let the agent spend your money 

I did not need exterior paint 

Didn't need new rock on my landscape, just a guy with a rake would have done fine.  

Don't do a tiered commission structure, just stick with a flat commission rate. 

Be careful of the buyer you choose. I worked with a VA buyer. Love those guy and what they do for our country but I feel like there were a lot more expenses involved with closing.

ORDER GRANTE ON DAY 1

Lead time on my granite was 3 weeks. Did it towards the end of the project. Threw me off my completion date goal by at least 10 days. 

Here is the Zillow link:

https://www.zillow.com/homedetails/1202-E-Geronimo...

Unfortunately it looks as if the pics are gone! 

Also price info is not correct. The house sold for $357,500

The list price was $365K

It was on the market for 2 days before we received this offer. 

Closing took over 30 days which was disappointing. My experience with the VA made it seem like they are slow to work with. For example, getting the appraisal done took nearly 2 weeks.

I have identified a few areas that I can approach differently on my next go around. If I were to do this project over from the start I could have saved close to $5K in expenses. Should have, would have, could have but all in all, great experience and I learned a lot. I also assembled a good team so If anyone needs some recommendation for quality guys in the valley let me know. 

Sale price	$357,500.00
commission	6.00%
closing fees	$1,232.00
Title	$1,708.00
other closing costs (HOA+termite+notary+home warranty+taxes)	$3,845.09
net after sale	$329,264.91
buildout cost	$37,178.14
holding costs	$1,793.91
net revenue	$290,292.86
total aqusition cost	$262,969.70
gross profit	$27,323.16
misc expenses	$1,216.20
Net Profit	$26,106.96
ROI	8.42%

Update: estate sale is complete and house is cleared out! Estate sale brought in $3400. Not fantastic but ever little bit helps. Wound up donating a lot of goods to Salvation Army. Sub contractors are slated to start on Thursday. Already completed landscaping. Anticipated completion date for all work is April 26. I will keep this discussion posted with financials, project progress, and before and after pics to come.

I've got a great agent that I run with in AZ who hooks me up on the sales commissions. Very investor friendly and knows how to get a home sold quick. Im convinced the guy doesn't sleep. 

My RE commission is 4% and my selling costs won't top $25K at the highest. I am cash guy so no HML costs. Purchase closing costs were not 3K. Personally I have not seen a residential RE deal take 1.5 months to close. I am a commercial RE broker and that is typical for smaller deals in the commercial realm, and way short for the larger deals (can take anywhere from 3-6 months) .. but for residential I see closings take place in 15-30 days tops. I just closed on 4 homes (some are flips some are sales) and the longest closing is this one toping out at 27 days.

@Bevla Reeves thanks! Yeah.. its looking more like a $30K job as these quotes are rolling in. Im doing kitchen, baths, flooring, landscape, and general repair. House has great curb appeal and structural elements are 100%. 

As soon as I get around to it I will be doing before and afters and I'll absolutely share. 

@Doug McVinua good to know! Definitely going to keep that one in mind going forward. Especially what @Erik Larson said about REO props wit a beat up pool. Doug, does Benito paint cabinets at all?

@Stone Jin good info, thanks for the PM. Really Appreciate it. 

@Erik Larson no pool nearby unfortunately. Out here in NJ pools are looked at in your premium houses and are for those with big budgets when buying. Cost of ownership for a pool out here is definitely higher and the utility of a pool is decreased because our seasons are a lot different. So when selling homes in the starter or young family stage not having a pool is nbd. In Arizona I see that so many houses have pools so my thought process was that not having a pool could be a detraction, even marketing towards buyers in that class. If the added value is only $10-15K than I would think I am in pretty good shape with the way I am running my pricing scenarios. Im looking to market the home for around $340-360K. My competition analysis points me in that direction.  If I can get $136/SF for the home I am in good shape. Anything over that its just gravy. 

@Bob Okenwa Yeah Jin looks like he's got a good contact. I will definitely be placing a call that way. Thanks for your input!