All Forum Posts by: Tara S.

@Justin Schreibeis

Thank you!! So when it first hit we didn’t want to risk anyone so we gave everyone the opportunity to choose to continue working or stop during the quarantine. Some stayed & worked but for the most part it was all just paused. The deeper we got into the pandemic sub contractors decided to disappear and stop working all together, we lost some money there because there still no where to be found. So it was def tricky to navigate through that. Luckily my husband is a contractor so he ended up do more the he planned on doing himself and I also do some things too so that def benefited us.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $64,000
Cash invested: $35,000
Sale price: $186,500

Contributors:
Justin Sullivan

Flipping this house during a pandemic was not ideal but it was such a great deal on the front end it still worked out!
Here are the numbers! Purchased from a wholesaler for $64k (being a realtor I got $1,000 commission at closing too!)
Original Reno Budget-$42k
Original Time Line - 3 months
Actual Budget-$35k
Actual Time Line-7 months (Work stopped for 3months due to Covid-19)
Carrying Costs-$6000
Pending Price-$186,500
Realtor Costs-$5,162
Closing Costs-$2,000
Projected Gross Profit-$74,338

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

We knew as soon as we got to the property that this was a fantastic deal. We didn't even leave the driveway yet before calling the wholesaler and negotiating the deal. The condition of the house looked worse then it was & the numbers were just fantastic.

How did you find this deal and how did you negotiate it?

We found this deal through a wholesaler. He was originally asking $68,000 we offered him $60,000. He countered back at $64,000 and we accepted. Also with me being a realtor we got $1000 back at closing for my commission.

How did you finance this deal?

We paid $9,600 for the down payment cash. We used hard money for the balance & the renovations.

How did you add value to the deal?

We opened up the entire first floor to create an open concept.Beautiful new white cabinets, counters, vent hood, pot filler (its the details that count), floating shelves.We converted a 1/2 bath that was in the kitchen into a walk in pantry for extra storage. Upstairs we expanded the bathroom a foot to give it more space so we could completely update it. We built a custom vanity with vessel sinks & stylish tile shower & floor, same with the 2nd bathroom. We also installed a modern metal railing.

What was the outcome?

As soon as we listed the property we were over whelmed with interest. There were multiple offers the 1st day. We decided to wait a few days to gather all the offers and finish the showings that were scheduled. One of the offers was very persistent and didn't want us to wait to decide so they gave us their best & final and we accepted!

Lessons learned? Challenges?

The lessons we learned on this was was to watch over the guys working more & make sure when we hire subs that they are responsible for cleaning up all their trash and left over materials. We went through 3 dumpsters and ALOT of clean up because subs and workers were not cleaning up when they were finished.

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

Justin Sullivan - General Contractor
Tara Sullivan - Realtor
Justin Eaton - Dwell Safe Inspection & Engineering
Eileen Mazza - RCN - Hard Money Lender

@Kaylee Pratt

#Flipping a house during a pandemic was not ideal but it was such a Great deal on the front end it still worked out! Here is a run down of our numbers!

*We found this deal through a #wholesaler in January. He was asking $68k, we #negotiated down to $64 (with my RE license I got $1000 of that in commission back!)

We listed the house for $175,000 & had multiple offers on the first day. We accepted a offer of $186,500!

*Original Reno Budget - $42k

*Original Time Line - 3 months (Jan-March)

*Actual Budget - $35!

*Actual Time Line - 7 months w. Covid19 (Jan-Aug)

*Carrying Costs - $6000

*Pending Price - $186,500

*Realtor Costs - $5,162

*Closing Costs - $2000

*Projected Gross Profit - $74,338‼️

@Nicholas Weckstein I have had issues with appraisers too. I had an appraiser for a commercial unit (6 units) and the comps they used were so far off from similar some duplex some SF. The appraiser refused to admit they did it wrong and I was stuck with a crap report & had to hire another appraiser.

And 1/8th in is very small. I don’t mean squeezing it against the wall. I have seen some floors where their 1” , .5” even 2” sometimes have been left as a gap under the trim.(We had some bad subs at points) but I bet if you check your gaps you’ll find your problem.

No there are no restrictions really on wholesaling it is a new system that came into play. I think there will be regulations one day but rite now I have never heard of a cap on a wholesale assignment fee. I just saw someone get a assignment fee of $35,000!

I am also an agent and investor and I love the idea. it will help you stand out and be remembered. Which is great in a sea of a million other realtors. Once they see your name is actualy BORING it wont be looked at as a negative.

So the floor is shifting because its probably not ran all the way to the wall. If you check under your trim you'll prob find places where the flooring is not touching the wall this will cause the floor to shift in those spots add some type of filler to put pressure against the wall and floor to avoid the seams having room to shift. If you want me to explain further message me. My husband is a contractor. We had a similar issue.

@Samuel Ogunyemi typically if you are taking out and replacing your don’t need a permit but as soon as you open up the walls and replace drywall you need a building permit but things that your just taking down and putting new up of the same thing no if your changing walls and layout etc then yes you need one (my husband is a contractor)

@Nathan G. That a tenant will flush concrete mix down the toilet! A fellow agent here in NJ told me a story about how her client had a awful tenant and didn’t want to leave when he was evicted so when he was finally forced to leave he flushed bags of cement down every drain in the house!