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!
Andy how you fine I pray I see that you do business in high volume I looking to put together a deal in your area but need a little direction if you please
Thank you in advance
My warmest Bilal
Feel free.... you'd probably be better served to take your requests to PM's or emails. Good luck.
Wow @Jacob A. what a great job. I just read through the entire thread and am so happy for you that the property is under contract. Congratulations! I hope the negotiations are going well.
looks great!
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.
Sure volume solves the issues. You're absolutely correct, with new investors you could be forced to find, and write offers only to never close.
@Jacob A. - crossing those fingers for you! I have someone with a 3/2 wholesale deal in New London NC....he just wants out with a little profit. I don't know the area at all - looks like a lake area? House has decent bones and prob a light rehab for rental or a flip. I was going to send a crew up to turn it around for him but it's just too far for me with all I have going on at the moment - 3 renovations and about to start the 4th next week.
Sometimes typing here is like texting - some of the words get lost somewhere...not sure why!
@Bilal S Ali - sure Bilal get in touch but I'm not sure why you want to wholesale in NC and Atlanta when you are out of newark? Learn to earn in a market you know like the back of your hand. I tried using turn-key guys to get into a dozen markets at the same time - it didn't work out well as I was entirely dependent on them for results and most were just marketing arms with no muscle or real intention of delivering what they had promised. All of the properties were resold at either a loss or a wash so I lost a bunch of money. One of the few times that I ever lost money in real estate. BP is a awesome place to network....
@Joe Delia - Relationships are everything. I have a wholesaler who brings me deals who is so tight with me and trusts my group. He just brought me a property before he even had it under contract...unheard of. I could have made a few bucks by submitting a higher offer and taking it. Trust is really everything but it's rare to find in this business. But that's the power of a 12-year relationship. I was happy to get a great deal and he had it under contract with me before he even had a contract on it. He made some money and my group will make $60k on a $60k deal.....sweeeet!
Wow that house looks awesome!!! Great job!!
Hey Jacob I wish I had read this sooner. I'm about to jump into the flipping boat as well. I had a sincerely great time reading all your updates. Great job with the staging as well... I can see that you have been watching your share of HGTV ;)P
Sorry about the theft/vandalism. Also, I couldn't believe when a nicely done house like that didn't get any offers the first month or so. Finally, congrats on the offer and passing the appraisal.
Do you have any more updates?
PS I love the pics and the marble bath. I may just have to put one like that in my personal condo ;)
Well I can officially say I've experienced it all in one flip. The buyer got cold feet and backed out of the deal. I found out after the fact this wasn't the only house he has backed out of. It gets better, as part of our contract he agreed to pay a little more for the house if I hooked up city water for him. I obliged and he did not, so that was an extra few thousand bucks out of my pocket.
I'm trying to be positive and move forward. We put the house back on the market Monday and have already had four showings this week with some interest so I'm hoping that we can get this baby under contract again shortly. If not, I may blow a fuse! I wonder what else I can get myself into with this house.....
I wonder what else I can get myself into with this house.....
That is a terrible affirmation. Can you really afford the consequences of thinking like that. Take it back and reframe it. :)
Sorry to hear about the non-performing buyer. Do you think the water connection improves the property in some buyer's eyes? You mentioned previously that other buyers wanted muni water.
Did you get any earnest money? I would look into ways to retain it as compensation for extra water expense.
We were still in due diligence period. I was under the impression that buyer can back out for any reason as long as its in due diligence period. I'm not sure it's worth it to get into a legal dispute for a few thousand bucks.
Thats generally accurate if the diligence period hadn't closed.
@Jacob A. just think how much you would have had to pay a mentor to get guaranteed exposure to so many potential issues! Think of this property as the fast lane from first timer to experienced flipper!
I'd say you can call your next one at least your 3rd or 4th flip.
That is a terrible affirmation. Can you really afford the consequences of thinking like that. Take it back and reframe it. :)
Sorry to hear about the non-performing buyer. Do you think the water connection improves the property in some buyer's eyes? You mentioned previously that other buyers wanted muni water.
Don't worry I'm only halfway serious :) It seemed so easy back in August when I bought the house.... lol. But yes I do think the city water will improve the value a little bit. The one knock on the house that we had before was that people wanted city water so there is no longer that excuse. But, the trend I'm gathering is that buyers will always find something to nitpick. Like I said, we have had three showings already this week and have one more today and one more tomorrow so I'm very hopeful that something will get done here very shortly. Cross your fingers. How's that for positive thinking?!?!
I agree. I feel like I need a cigarette with the beating I'm taking, but that's the nature of the game. It's not easy and unfortunately sometimes you have to figure that out the hard way. We'll just chalk this up to a good education.
That is a terrible affirmation. Can you really afford the consequences of thinking like that. Take it back and reframe it. :)
Sorry to hear about the non-performing buyer. Do you think the water connection improves the property in some buyer's eyes? You mentioned previously that other buyers wanted muni water.
Don't worry I'm only halfway serious :) It seemed so easy back in August when I bought the house.... lol. But yes I do think the city water will improve the value a little bit. The one knock on the house that we had before was that people wanted city water so there is no longer that excuse. But, the trend I'm gathering is that buyers will always find something to nitpick. Like I said, we have had three showings already this week and have one more today and one more tomorrow so I'm very hopeful that something will get done here very shortly. Cross your fingers. How's that for positive thinking?!?!
Well, I'm not into hope or luck or superstition. I'm into consciousness. Just see it and say it the way you'd like it to be. No matter what happens you'll be in a better place to deal with it. Be thankful for all the easy and profitable closings coming your way. :)
Jacob, dont let these setbacks get to you. I've had break in's and vandalism before in my flips and rentals. Just keep going until you have the money wired in your account and it will all be worth it!
Whew what a week. We had a gigantic week with the house. As I said earlier, the previous buyer backed out a week ago today. Since then, we've had 8 showings and several offers. We are back under contract as of tonight. I was hoping it would happen fast but even this surprised me. I'm still blown away by the effect that the time of year has on the market. We had more showings this week than the previous 4 months combined. Now to navigate the closing process once more....