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!
Before exterior:
After exterior:
Before kitchen:
After kitchen:
Before dining/family room:
After dining/family room:
Back of the house before:
Back of the house after:
Here are a few more random after pics:
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!
Great news, it was only a matter of time.
@Jacob A. ....Sweet!!!!..Job Well Done!!.Thx 4 update...
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!
I appreciate the advice and time you spent going through this. I'll definitely take your advice and run with it. I definitely need to jump on a marketing campaign in some shape or fashion but just haven't found the time to get it going yet. It's tough working 55-60 hours a week and getting this real state venture going on the side but I plan to find some more time for it in the future.
It's great that you are involving your family and doing one at a time. Getting the spouse and kids involved is a great way to go...plus they will learn the value of a dollar. My 8-year-old daughter was out of school this week and spent a day ripping up poorly installed tile on a failed investor flip/rental that we just bought. She earned $20 and will remember how hard it was to get it...before she spends it! I log huge hours as well but real estate can really set you free economically if you have goods ideas, develop a good team with boots on the ground and buy right. You'll make a portion of your money how you buy it and the other portion with how much you put in it. I usually over improve my flips and I know that going in but, like you, I want a quality job and a home that I would live in. Doing my shared housing slips allows me to reign myself in as we aren't doing anything to retail or for appraisals....just nice enough to live in.
If you are going to stay with it in that same market, work a deal with your contractor to go back a month or two after the sale and give them a couple hours of free "make-you-happy" service. It will get more business for the contractor, cost you $100 bucks at most AND no you turned your new homeowner into a free marketer for you and your properties. No one does anything like that....and people remember that kind of service after the sale. Keep up the great work!
@Jacob A. I just finished reading through your entire thread and man talk about some bad luck! First with the vandalism, then the holidays, and recently the awful weather we had in this area. It's a beautiful place though so hopefully the current contract in place closes on time for you and you can do it all over again!
@Andy Luick Great advice..that's what I call thinking outside of the box. I took note of all your suggestions to use in my own future endeavors. Thank you sir!
@Jacob A. Great Job ! Quality work always sells ! What are the final numbers ? I think you did great. It's not bad luck around the holidays...they come the same time every year ! Plan for them.
I'd rather wait until I close to post the final numbers, but I will give a full breakdown. I originally anticipated getting rid of the house before the holidays but we had some setbacks that put us right in that period unfortunately and we were stuck for a few months. I underestimated the effect that the winter would have on the market but it definitely did. This past week was the first warm week or the year really and we had 5 showings so that speaks for itself. I will definitely mark that down as a learning experience and try to time my flips better in the future.
@Jacob A. I'm going through the same experience, we had a flurry of showings in November (WI/IL area) and had a buyer back out of a contract just before Thanksgiving, then it was barely any showings up until the last few weeks, now we're seeing a couple showings a week again.
Hope the closing goes smooth for you.
Great job and an inspiring story for a newbie investor like myself. Thanks for sharing your growing pains. I'm currently looking for my first project and am getting very frustrated but happy to see persistence pays off.
Looking forward to the final numbers and to one day share my own story.
@Jacob A. - it's finally happening- that's awesome man- can't wait to hear the final result!
@Jacob A. congrats!!!
My contractor sells kitchen cabinets as a side business. He gets them wholesale from a supplier directly. I couldn't tell you who it is though.
I'm a big fan of that marble. Just about everybody that walked into the house had something good to say about the shower so I highly recommend the product.
Great Job! Isn't it an EXCITING feeling to accomplish such a task? I remember my first one-Covered in blackberries and only a small pathway to walk though the house- I saw the gem in it and kept the house as my rental.
I couldn't read though all the comments due to time I am always short of--but did you fund this via hard cash or get a bank loan?
I funded with a HELOC.
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!
So your advice to him is to find the best listing agent in the area, and ignore the person who brought the deal, then when you've inked the "Best" listing agent, cut his commission.
Yes, thats a great way to have agents be the first one to call you when they have a deal...
Could that work? Sure. What number phone call will you be when that agent has a deal he's marketing? Not anywhere near the top of my list!
In an effort to stop any arguments or differences of opinions, both strategies have their places. Andy's style seems to be working well for him. Joe, I am more on your end of the spectrum where I am trying to build a good strong relationship with my agent since I am a low volume flipper. I only need a handful of deals, but for someone needing massive amounts of deals to get by I can see where Andy's strategy would work for him. Thanks for the input guys.
That's a pretty spectacular flip. Nice job.
@Joe Delia - You can trust that I am all about the relationship and, in any market, relationships are what it is all about. What works for me in metro Atlanta might not apply in all markets...this is a huge market with millions of people and 1,000s of weekly transactions. I have a ton of realtor friends and have been in those shoes myself. My philosophy is that I want the best player I can for each position on the team. My selling agent (repping me as buyer) may not be the best person for the listing slot. I refer a lot of listings to agents through our repairs in our contracting company....homeowners tend to call us first when they are getting ready to list. I had a client last year who listed with someone...the house sat for 3 or 4 months with not much activity. She relisted with a team that I referred and the house was gone at the same price in a week. Who knows why it sold so fast...maybe it was all of the previous marketing... but I can tell you that this particular team has some sort of magic and a great network that follows them. They do a ton of personal marketing work and network on a personal level....it's a husband & wife team and I like those because it's like getting two for the price of one in effort and production. I have another agent that I personally can't stand but I use her to list and refer her to others because, in her market, she gets it done and I'll keep referring her as long as she gets those results.
I wouldn't "cut" anyone's commission. As an investor, you have to put people on the team who get you & the mission. On my deals, the selling agent on my buys is really getting a "free" commission anyway as I find my own deals, research them and know more about them & the markets I run in than most agents would. I actually ran with a newer agent yesterday who wanted to run properties with me and learn what I do. Agents don't have to run me around typically and I mostly close what I put under contract. All they have to do is change the address on the GAR form and submit the offer electronically...takes them about 5 minutes. I like dropping the commission on the listing side and paying a higher commission on the sale side. I don't do a ton of retail flips anymore but when I did this worked like a charm. It actually gave my listing agent the incentive to go find me a buyer and get the reward for it. Finding the most knowledgeable & productive listing agent is always the way to go. Too many times, the selling agent for an investor assumes that they are entitled to the listing...and they aren't. Even if I list with someone else, my selling agent has the chance to find a buyer and get a premium commission.
A newbie investor isn't likely to be able to do it my way. I've been doing this for better than 25 years and have a track record with quite a few agents. A newbie might submit 30 offers and ink zero. Those on my team understand my approach and it pays them to be productive. There is nothing more valuable than a market informed, hustling real estate agent. Sad part is, many aren't like you...you're hear sharing and adding to your knowledge. The days of sticking a sign in the yard will be gone in many markets for quite some time to come. In the right parts of atlanta, it is that way right now with tight inventory and houses selling for more than listing price. I am a HUGE and you can bet that I will protect and nurture the business relationships I develop with agents and others. One of the biggest mistakes newbie and even seasoned investors make is to try to squeeze a little from everyone in the transaction. I won't do that but I want value for my money....and I'm sure do to! Happy Investing.
Jacob how are you great job I'm looking to get into the Raleigh area I have birddog on the ground doing the leg work everything I'll being doing via phone fax online etc etc can I reach out to for your expertise thank you in advance.
Bilal