My brother and I just got our first deal. We went through hubzu - surprsingly straightforward so far. No specific questions just yet, just wanted to get into the conversation. Would love to hear from you all if it sounds like we're on the right track.
We saw a little 2 bed brick bungalow on Hubzu listed with a minimum bid of 32k. We waited til the last day on the auction - there was one bid at 32k so we bid 33. We decided our max bid would be 43. After a few rounds with two other bidders, we won the auction at 38k. That night we got an email calling for highest and best offers, with a minimum of 44k. Still thinking this was a long shot deal, we put in a 44k bid. We must have been the only offer because we won! Sent in a picture of the earnest money check and should have a contract back from them on Tuesday. Closing is set for January 28th.
The numbers: Bought for 44k, with a buyers premium that brings the total cost up to about 46k. My brother's girlfriend is a realtor so we'll get her 3% back.
The roof of the house looks good but there's a hole in the garage because of a design flaw so we'll have to look at that. Otherwise, it's mostly cosmetic - paint and trim and some new fixtures. We think we can be all in for 60k and the comps in the neighborhood support resell between 90k and 100k.
What do you think - are we on the right track? Are there some common things we might have overlooked?
sounds good but how strong is the market there right now? are things moving fast? also look close at the roof. i would recommend a good inspection if this is your first rodeo.
As long as the numbers work, the deal will work Ben.
If you have done your homework (market values, sale times, absorption rates, acquisition / repair / hold / sale costs, etc.) you should be fine on your first deal.
Explain how you won at 38K, then had to submit a higher offer?
Scott that's a good question.. The reserve on the hubzu auction hadn't been met. There's a possibility the reserve might have gone down on future auctions but we decided not to risk losing the deal.
@Ben Whaley congrats, thats sounds awesome! I've never heard of Hubzu, but am definitely interested in getting in to flips in the future. I'll be sure to look that website up.
Are there any other fees associated with Hubzu? Yearly membership? Transaction fees etc?
Best of luck with the flip. Can't wait to hear the final story.
Glad to hear from a fellow OKC person - the house we bought is actually in OKC where my brother lives. Sorry I missed your post earlier. Hubzu is just an online auction site that some banks are using for their bank-owned properties. There aren't any membership fees or dues, but there are some service fees included in the buyer's premium. They were up front about those when we placed our bid - we close tomorrow and I'll have the numbers in front of me so I'll be able to let you know exactly what the breakdown of fees was. I'll keep you posted.
A question for you or any other okc folks - any suggestions for a builder's risk or vacant home insurance agent in OKC? I've got a few quotes from online insurance companies but always like to stay local if I can.
Thanks for the good thoughts.
@Ben Whaley great to hear. I'm looking forward to the details.
Unfortunately I can't be much help with a builder's risk or vacant home insurance agent in OKC. All I know so far is buy & hold....but I'm sure that there are some Oklahoma City flippers on here who could lend a hand. Good luck.
Sounds like you might have found a good deal. Not sure if you are running under an LLC or personally, this makes a difference in your insurance.
@Ben Whaley We have our builders policy through CFR Insurance, they are easy to work with and their rates aren't bad. You'll also want to get a general liability policy, and they can help with that too.
I don;t use local agents since most of them are working for specific companies anyway. I used to but found it quicker and cheaper to do it myself. If you don't find anyone or haven't tried Foremost I've found they have the best rates. I have a vacant property that I am rehabbing right now that they are covering fro me.
How did it finally go? Would love to hear news on your outcome!
Me and my husband are planning to start our flipping business in Oklahoma un the very near future... How long did it take for you guys to remodel and then sell the property?
guess it didn't go so well.
Just wanted to let you know that we finally did it!!!
My hubby & I bought, fixed & flipped our very first property in Oklahoma city...
I invite you to lime our FB page, there you will be able to browse at the before & after images... We are LIVING what we are doing!!!
Now we're urgently looking for another property to fix & flip, near the NW area of Oklahoma city in a price range no greater than $50k... Any help will be greatly appreciated!!!
Have a good day!
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awesome! Congrats. What's your numbers look like?
sorry. @CeciliaCobar congrats
@Cecilia Cobar Congratulations on your first deal! That's always the hardest one.
Thanks @Josh Murr !
We invested approx. $95k and since it was our first flip, didn't want to take risks, we put it in the market at $135k... After 3 days on the market, we received a full price offer... This was less than 30 days ago, we are doing the closing in three days...
Here's our virtual tour if the sold property!!!
Nice! That's a home run!
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Hey guys - sorry for such a long delay! Thanks for your interest circling back.
We did indeed finish the flip! It didn't go as well as we'd hoped, but we came out with a decent profit and A LOT of lessons learned.
We did 95% of the work ourselves (meaning my brother did most of the work as I wasn't in OKC for the year last year) so the property took about 6 months to finish getting renovated. Next time, working together, we'll go much faster! We'll also hire out some things to expedite the process - electrical being one of them.
We'll also put central air in FIRST for the next one we do. We tried to skip it, but showing in the summer it was the first thing every buyer was looking for. We wasted our good summer showing months on buyers looking for central air. Adding central air was a major expense we hadn't counted on - and though we got a good deal on it this and a few other things meant we were a bit over budget.
In the end, the profit we made wasn't very satisfying because it wasn't worth the time we spent. Major lessons learned and we'll definitely get out there again - a little wiser and a little less optimistic.
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