All Forum Posts by: Shawn Ward

Congrats! Now on to the next one.

@Drew Hickok if you can make a profit that meets your goals, sell it and move on. The market can change at any time. We've done it before, but it was at the profit we wanted. If it was less, we wouldnt. 

All the best

Hello everyone! 

It's been a while since I reported on this project and for good reason. There were no updates. But finally, I can share something meaningful. 

We FINALLY got our plans approved by the city's Planning Office and got our permits in January '19. Once we received the permits, we had to re-run our numbers, and due to the enormous amount of months delayed (15 months without any work being done), Hard Money interest, architect fees, city fees, etc, it was clear that this project was no longer was a viable investment. 

If we were to continue to create the addition we would have had to raise more private money and would eventually sell it at a significant loss even if we were able to finish the home in 6 months and sell at the highest market comp, which isn't guaranteed of course.

Because of this, we determined that our best plan of action was to sell it now, get your money back, pay out our current investors and HM loan and move on. It was definitely a learning lesson, and dealing with this HPOZ in the future is not an option.

Thus, we were able to sell the property to another investor who will proceed with finishing the project. Since they are proceeding with permits and do not have to go through the costly process we did, it financially makes sense for them.

We are now moving forward in this new slowing market with eyes on conservative and market-condition-appropriate deals (fix & flips and STRs).

From this deal:

PROS: Lessons learned (keep away from HPOZs for the most part)

CONS: 1. Was not able to complete the project to finish   2. Was not able to get our private investors the return we wanted     3. Had money tied up in this deal a year longer than we planned

This business is a marathon and not a sprint, so we are still moving forward and loving the biz.

Any questions, feel free to post here or DM.

Thanks!

sjw

@Jordy Train Ask people you trust in the area to recommend very good agents in the area. Try to get 3 of them to walk the home and give you a list of comps, and an idea on what your ARV is.

Pick the most professional one and honest one that you respect and maybe proceed with them to sell it. 

All the best!

I agree w/ @Greg Dickerson and @Kuba F. . We do it. If you have done your analysis...seen enough photos and have a good grasp of the neighborhood and comps, then put the offer in with your inspection contingency. 

Save yourself time, and if they prefer you see it and respect your offer amount, go see it. 

Onward!

sjw

@Nick D. reach out to more agents and wholesalers and let them know your intentions. Get as many people feeding you leads as possible. 

@Robert Dudley I agree w/ the other guys...and I'd add that if you are doing so well on these, try to duplicate them buy getting the LOC/Loan and buying 3 more.

You can be successful by duplicating what you have already done very well instead of risking doing something out of your comfort zone. 

All the best!

sjw

@Madison Balter if you are looking to fix and flip, you can compete w/ cash offers by getting a pre-approval letter/Proof of Funds from a Hard Money Lender. 

Hard Money is considered 'all cash' and they can close within 10 business days. 

This is all you need...to add to that, maybe a personal letter (with you and your dog..something cute) and a good proof of funds letter.

Onward!

sjw

@Michael Via :

1. must have designated parking

2. must be 1k sqft+

3. must have at least 3 strong DIRECT comps

4. purchase price = .72-.75% of ARV

5. ARV confirmed by a trusted agent

All the best!

sjw

Good job! Congrats!