Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
Here we are finally done with my first rehab. I started back around the middle of August and 3 months and one massive act of vandalism later we are at the finish line! Please feel free to ask questions and make comments about the pictures below. I really enjoy answering questions and helping out in any way I can. Enjoy!
Real Estate Investor · atlanta, GA · Member since 2013 · 456 posts · 237 votes
12y
Great job on the remodel Jacob - I wish I had caught this posting earlier. You do really nice work and obviously take a ton of pride in your renovations and the home you are presenting for sale. You need to point that out in your marketing efforts. I've flipped more houses than most over the years but what works for me might not work for you:
The agent who can help you find & negotiate the deal on a purchase isn't necessarily the best person for the job on the sale. Agents often think they are somehow entitled to the commission on the other end of the deal if they helped you buy it. Figure out in advance who the "hot" listing agent is in the market you are buying the next house in and interview them for the listing....even in advance. Chat with them about your plans and get some input as to what you should be doing to make it sell for max price. You don't have to listen to them but it's good to hear what they have to say in advance. I have some agents in east cobb who sell everything they touch at great prices...not always market max...they actually sold one recently before it even was listed. Find those kinds of agents and don't be afraid to split the deal
I wouldn't have lowered the price at all...at least not when you did. I would have cut my listing agents commission back some and ramped up the selling agent's commission to 5%. Agents are commission driven and the more you pay, the more attention you'll get...and they'll be lining up to see you next project.
Shoot a great marketing video of the property and get it online ASAP. I am involved in several companies and video marketing is key to what we do and our success. Check with the local colleges and see if they have a video/media program and see if they will work with you on internship or cheap basis...be they will. Youtube is great...but it has to be a good video. If you feel comfortable, get in front of the camera and explain the salient points of what you've done with the house. No one knows that house better than you and your contractor...I'm sure you are doing some of the work so advertise that. Once you have the video you can post the link EVERYWHERE....put a note in it that you buy houses. CL isn't the place to sell your house...though it might a great place to buy. Post it there but just accept the low baller tirekickers that come from it. With my renters, less than 5% come from CL...the rest are from other sources.
If you're going to keep doing this, get with a great local printer and have a nice postcard size marketing piece done...front & back. Set up the standard one side to be all about you, your philosophy and the "why should I buy from this guy?" Remember back when you bought your first home....the anxiety....the unknowns...speak to that...you have an honest face...use it in your marketing. Get known in your market as the "yes..you'll pay a little bit more but I'm worth it" investor. Also put a note on there somewhere that you BUY houses... I like making things do double duty so get the most out of your $$ and efforts.
Once you have the card set up - use it for each property. Take it door-to-door in a 1/4 mile radius around the property and try to meet some of the folks in your neighborhood. Don't knock on doors....and don't leave it in the mailbox as that's actually against the law....leave it in their front door. You'll have your neighbors marketing for you and you just never know...a visitor might see your card, catch the sexy shower and want to buy it. The card got the ball rolling...not your agent. There is always a hidden market for buyers...just like the one we try to find for sellers.
Raleigh is a big IT town with more men than women. Market the house as a 4bedroom from the get-go...if it has a window & a closet and meets basic space requirement...it's a bedroom. It's also the perfect man cave for someone with a family...it's also, more importantly....the perfect home office for someone who works from home. Marketing is all about finding your niche or creating it;
Lastly, if you are going to keep doing this....reach out to the HR departments of leading and mid-size firms in your area....same with recruiters. The larger firms will have contracts with real estate relocation firms...ask who you need to speak with and let them know about your house and future projects. I know quite a few HR people and recruiters and networking with them brings me business.
Congrats on the house.....hope some of this helps for the next one! happy Investing!
Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
12y
Jacob -
Just got a chance to review your pictures and the thread. I mirror everybody else's comments - GREAT WORK! I plan to take on my first rehab within the next 4-6 weeks and your story gives inspiration.
I'm sorry it has been sitting for so long without selling though. My only suggestions have already been mentioned - Do a basic landscape, offer 2-3% concessions to seller's closing costs, and offer the seller a 1 yr home warranty. Out the door you're looking at eating into $5,000 - $6,000 of your projected profit, but it may be the boost this house needs to sell.
I appreciate the great feedback and good luck to you in the coming weeks on starting up your first rehab. I have a meeting with another more experienced investor this week and I really want to pick his brain about my house. He is also an active agent so I'd love to hear what he has to say. I think once I get his opinion I'll probably take some kind of action whether it be drop the price, offer closing costs, etc. Again, thanks so much for the feedback and if you have any questions about my experience with my first rehab feel free to shoot me a PM. Good luck!
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
12y
In my markets my agent also advises against offering the closing costs and home warranty in the listings. Every offer from a buyer's agent is going to ask for them anyway, so it's more prudent to wait and see what they actually ask for. But you've got something else going on.....you have few showings and no offers. So your listing really needs to generate interest and get buyers over to the house. I know you are waiting out the season, but I think you should really consider a price reduction and some incentivizing seller concessions asap.
Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
12y
@Account Closed
I have gotten quite a bit of good feedback on that shower so I may just do that. We figured since we couldn't fit a bath tub in that master bath that we would try to make it feel more spa like in other ways and that's what I came up with.
Home Stager · Sussex, WI · Member since 2012 · 170 posts · 64 votes
12y
Jacob - very nice job on the interior rehab! I think it will appeal to a wide audience. Can you share a link to the listing? I was searching for your property on Redfin and unable to locate based on your description, and in your listing range of $164,900. Just curious to see what your competition is.
From a buyer's perspective, I do have to agree with a few other comments about the lack of garage space (are 4 bedrooms in demand in this area?) Personally, I would prefer a protected parking area, even if it's a well-designed carport. Also, the need for some additional curb appeal with some basic landscape plantings, and reconfiguring the driveway so that it's not running right into your new fourth bedroom. Seems awkward. Also, I think preliminary marketing by your agent is a real necessity and curious to know why she objected to this. Shouldn't that be part of any listing service? I'm not an expert, but I hope this feedback is helpful. I hope it is sold quickly!
Thanks for the post, I always appreciate constructive feedback. I tried to send you a PM with the address but it looks like you are blocking PM's so if you want to send me one I'll be happy to send you the address. For whatever reason I'm not comfortable providing the listing on an open forum. We did start marketing it as a 3/2 instead of a 4/2 and are using the potential 4th bedroom as additional space. We were not sure if the septic records allowed for a 4th bedroom or not and could not get an answer from the city so we thought it better to advertise it as a 3/2.
Home Stager · Sussex, WI · Member since 2012 · 170 posts · 64 votes
12y
Jacob - very nice job on the interior rehab! I think it will appeal to a wide audience. Can you share a link to the listing? I was searching for your property on Redfin and unable to locate based on your description, and in your listing range of $164,900. Just curious to see what your competition is.
From a buyer's perspective, I do have to agree with a few other comments about the lack of garage space (are 4 bedrooms in demand in this area?) Personally, I would prefer a protected parking area, even if it's a well-design carport. Also, the need for some additional curb appeal with some basic landscape plantings, and reconfiguring the driveway so that it's not running right into your new fourth bedroom. Seems awkward. Also, I think preliminary marketing by your agent is a real necessity and curious to know why she objected to this. Shouldn't that be part of any listing service? I'm not an expert, but I hope this feedback is helpful. I hope it is sold quickly!
All the best!
@Jacob A. - Oops! I didn't realize I was blocking PM's! Thanks for the heads up. Let's try this again.
Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
12y
Dropped the price 10k today. I think it is incredibly well priced now and I'm hoping to see some action by the weekend. Gotta love trial and error when you're first starting out.
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
12y
Jacob: I had a chance to check out your listing. You have a lot more competition that what I see in my markets. There are quite a few very nice rehabs that are the same price or lower, for newer, bigger houses in the same zip code. I'm used to seeing mostly shorts and as-is REOs, with very few rehabs. Rehabs here that are FHA ready go into contract in the first week or two. It looks your buyers do have choices.
I'm still curious about the garage conversion. If you had left the garage, how much of that savings could you have passed on to the buyer, thereby creating a really competitively priced 3/2?
Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
12y
@Account Closed
The garage conversion is the biggest thing I probably would have done differently. It wasn't a garage before but it was a carport and it was in terrible shape so we would have had to spend some money there either way. It cost us about $5,500 to enclose it and make a 4th bedroom/living room. Looking back I wish I would have just made a garage out of it as I don't think that 4th bedroom is as much in demand as a garage is. Either way, the garage would have still probably cost us somewhere close to the same thing so I don't know that we could have had much price savings. The cheapest thing would have been to just keep it as a carport but we would have had to replace a lot of what was there.
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
12y
I can see how once you get to enclosing a space, you'd be tempted to make it part of the interior. There may well be a buyer that needs the extra interior space with min. needs for a garage, but it takes longer to find them I think.
Investor · Atlanta, GA · Member since 2013 · 212 posts · 107 votes
12y
How's the buyer traffic post-price cut?
This is really just an observation, since it's beyond your control, but I'm curious whether the Zillow sales history showing the previous low listing price is hurting demand. While everyone criticizes Zillow, retail buyers do look at it, and I could see potential buyers being deterred by the apparent spread.
Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
12y
Hey @Account Closed
It's been a little bit slow for the past couple of weeks. It has been bone chillingly cold and snowy here though and things tend to completely shut down around here when the S word (snow) is thrown around. We had a second showing scheduled but they cancelled at the last minute due to scheduling conflicts and have said they plan on coming back out but not yet. Hopefully, when this cold spell clears out we will see some more traffic. As for your observation about the spread on Zillow, that very well could be the case. We haven't heard anything about it in our feedback, but then again I'm not sure that we would. I'm just trying to stay patient and hopefully soon I'll have some good news.
Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
12y
Update for the folks still following:
We are under contract as of this morning! I'll post the full breakdown once we close but as for now I can say its a very strong offer and will close sometime around the end of March.
Investor · Guttenberg, NJ · Member since 2013 · 29 posts · 6 votes
12y
Just looked over your entire thread and great job. Looks like you received an awesome education from this flip. Congrats on getting under contract! Good luck on this project and future