Project BP 2/6/16
*****Project BP 2/6/16*****
The group expanded this week! We had several new investors come out with us to explore properties and discuss REI. Fantastic Saturday morning spent with @Sherrie Wright @Dhru Das @Account Closed Valerie, and Rossana!
We all gathered together at the first proper on South May Street and took our first impressions on the outside of the property. With the guidance of Sean and Aaron we stepped through the property, analyzing what each of us might alter or change about the lay out and rehabbing of the property.
Our group repeated a similar process through 3 properties (each priced differently, each with its own problems (or as we BPers call it - opportunities to make money).
For example, the second property we visited was completely wet, smelled of mold, and was going to need a total gut rehabbing. This might have been intimidating at first considering the amount of work necessary to get the house back in shape but Aaron and Sean changed our perspectives by explaining that the timing for acquiring a property that may have leaking pipes and mold BEFORE it becomes unmanageable could allow serious reward in the spring time! Awesome perspective!
We then travelled to a final property that has been rehabbed and is on the market to compare and look at the type of work possible for our own projects.
Personally I found seeing each property and using the comp sheets to be very educational - I know how to figure out if a deal is going to be a sound investment or not!
Each of us brought our knowledge and skills to the table and we circled up at the end and everyone shared which property they felt was most likely to turn an investment and why. Not everyone agreed, but the methodology by which we reached our decisions was essentially the same.
Take-home message: This is actually something Sean shared with the group two weeks ago, "When you walk into a home you should have the mindset of 'would I live in this space or what would I change to make me want to live here' rather than a mindset of 'what do I need to do to make money'"
Action Items
- Some members of the group have partnered up and are working on deals! Sherrie, Aaron and I have submitted an offer to a fix & flip property viewed two weeks ago and discovered it's a multiple offer situation! We resubmitted a higher offer to increase our chances HOWEVER we've searched for contingency properties to make offers on in the event our offer isn't accepted.
- Aaron and Dhru are submitting an offer on a Bungalow with a partially finished attic next week!
- Gerry is the owner of a Buy & Hold deal he and Aaron worked on a few weeks ago and are establishing tenants to turn a profit. The next steps for them are to refi and DO IT AGAIN!
- Project BP will be gathering again next weekend to do more property walk throughs and discuss the ins and outs of REI!