All Forum Posts by: Shanel Wiggins

@Shanel Wiggins I found it on MLS. It was an aging listing because it was overpriced at $189k. I offered $150k to see if the seller responded. He did and we ended up at $165k.

@Shanel Wiggins

Flipping and wholesaling are not my prime activity.  I also buy and hold, rehab, land development and subdivision.  I work in the Harrisburg, Lancaster, York markets of PA.

I did a Bigger Pockets Podcast #82, give it a listen.

@Shanel Wiggins,

Thank you for the kind words!  I do apologize for not getting back to you sooner.  It's been a crazy past few weeks with getting everything in line to close this week.  My Real Estate agent and his team had a convention in Florida this past week which pushed closing to this Thursday.  With this being said, I was down to crunch time to get all my ducks in a row.  

To answer your questions, MPP is Maximum Purchase Price.  Thanks to J Scott and BiggerPockets for bringing this our way, his book "The Book on Flipping Houses" (A Must have as well as sequel "The Book on Estimating Rehab Costs") explains in more detail how to find a reasonable Maximum price you should pay for a property.  What I am finding is this generally is in the area of 50-55% the Actual price you know you can sell the home for (against comps).  e.g.  The home I aquired, was for 93,900.  There is 1 comp in the area that sold end of Dec that wasn't even flipped, just painted and new carpet that sold for 194,000.  Taking this into consideration you can clearly see that my purchase price was at least half of my selling price.  The reason for this is to give you a good idea on what you should pay for the property while taking into consideration your Holding Costs, Renovation costs, and Selling costs.  

Here is what I did for this property.  If you Read the captions near the top, it will explain each section.  Then from those sections, I attached $ to them.  MPP (Maximum Purchase Price) = Sales Price (What my COMPS are near) - Fixed Costs (You can see my running column on this and is what i considered part of my fixed or "Holding Costs") - Profit (How much you want to make on the home) - Rehab Costs (How much money you are willing to put into the home, or what you walked the home and found needed to be fixed)  I fluffed some numbers in my fixed costs, but you can see the MPP here would be 91,628.00 as my highest offer on the property.  With all into consideration, I found a few more comps in the area around 224-230K so I took the offer at full price at 93900 which was a no brainer.  I close Thursday, and Demo starts Friday!!!!!

I was inspired by J's books that I formulated all of his sample spreadsheets a bit further by adding checkboxes to his sample rehab costs sheet I walk the property with my iPad, check the box next to the item in the home that needs changed to where I walk out of the home with a running total (estimated) costs on what it will take to reno the home.  Took me a while but I was stuck in analysis paralysis for so long, this was probably 1 of the benefits that came from it.  I have created a faster system that works wonderfully.  I Have Contracts now furnished for new Contractors, and by using the sheet in the image above, I can pretty much get a good idea on if the house is a good buy or not prior to walking out of the house.  I think on the next few properties I find, I will apply everything on site, and then if it's good, put an offer in with my Real Estate agent before even walking back out.  

I hope this information helps and finds you well.  If you have any questions, feel free to PM me and we can connect!  Good luck with your future flips, and have  a wonderful remainder of the week ahead!

I did a flip where I only owned the house for 9 days.  I did nothing to the house, I didn't clean it, I didn't paint it, I didn't remove anything from the house, I didn't add anything to the house, I didn't cut the grass and I didn't even turn on the utilities.

Sold it for $10,000 more than I paid.  Started looking for a buyer before I settled and after under contract, and had the sale contract inked before I settled.  The reason it took 9 days was waiting for the buyer to fund and settle.

The buyer rehabbed it, and sold it for $60,000 more than he paid.  So in 2 months this house sold 3 times, when I bought, when the rehabber bought and when the rehabber sold.

On another flip, I did clean and paint.  I paid $6,500 for the house and before I could advertise or list the property, a friend of a neighbor approached me and asked what I was going to do with the house.  I said sell.  He said that he was interested and we settled on $140,000.  There was no sign on the property, no advertising, no listing, and was sold to the first person who looked at it.

My first success story was a house in Longmont that I flipped last year.  It was a fairly rundown house on a road crowded with cars and along a train track.  The neighborhood wasn't great, but the market was (and still is) desperate for new homes.  Here are the numbers:

  - Purchase price: $150,000

  - Expected Rehab costs: $20,000

- Expected ARV: $210,000

  - Expected Profit: $15,000

It was my first flip, and I didn't expect to make a lot, but I needed to get the experience and was fairly confident I would make some money.

Here are a few before pictures:

And here are some after photos:

And the final numbers:

Rehab costs: $31,000

Sales price: $231,000

Profit: $24,000

All and all, I was happy with the result, though I know I got lucky on appreciation.  I learned that I need to work on estimating rehab costs better and control costs during the project, and also learned a ton about the start to finish process.  I got the education I was looking for, for sure.

Paul

Our FIRST one! 

Bought at $245,000

Repair $75,000

Sold $387,000

It's amazing what you learn on the first one. We made some money on it, not as much as I'm sure a seasoned flipper would have, but for our first one, I'm calling it a win! 

Just wanted to share the good news with my BP Family.  You all told me to Jump, and I said how high!  

I took the leap away from analysis paralysis last week as I have been eye balling an REO during Fannie Mae's First Look. let me tell you.... Those 15 days were the longest day's of my life haha. When it hit the MLS, I was the second offer in, however my MPP allowed me to offer asking price. The first offer turned out to be a low ball offer and I just found out today that my offer has been ACCEPTED!

Here our my Layout:

Actual Purchase Price: 93,900 ~4,000 less.
I know we can sell it for 194,000.00 but we will go a little above comps.
Fixed/Holding Costs around 26,340/@6 Months
Rehab Costs: 40,000
Leaving a profit of 30,000 for our first flip

If we stay firm on our Rehab costs, and we sell higher than comps (Perfect world) We may make close to $40,000 or $50,000.   Wish us luck!

Our last question for you is.... What's next?  Does anyone have a process laid out on the steps after the offer has been accepted?  J Scott has a process list from his first book that I have outlined, but want to hear if any others have amended to that list and or found something that is easier?

Looking forward to everyone's responses!  Happy Flipping!