Real Estate Investor · Nashville TN · Member since 2009 · 287 posts · 171 votes
Just sold this flip in PG County, MD a couple weeks ago. #6 of 2014. Hoping for at least 20 this year.
I'm not sure of best format for posting pictures and the profit breakdown. I have a spreadsheet that I use that calculates my 'pro forma' profit and then I plug in real numbers and it gives me my real profit plus or minus like $1,000. I could probably post that if you guys want.
For now, I'll just put everything in this post:
Purchased 1/18/13; $63,000
Sold 4/2/14; $184,900 less $4,836 seller subsidy
Rehab: $55,760
Closing/Holding/Etc Costs: $24,000 (comprised of hard money costs at 12%, $9k closing costs on sell, $8k closing costs buy)
@Christopher L. it was a listed short sale that I was aggressive on and offered incentive to agent.
I offered the day it hit the market, called up the agent and said I really wanted the house, talked about how many houses I've done, and told him I would waive my commission as buyers agent to him as listing agent. That last thing in particular seemed to be something he wanted, so I got him an offer right away at a price he thought was going to work for the seller.
Waited, waited, waited (like 3 or 4 months) then bought it.
@Jonathan C. That's awesome! as a buyer's agent myself I'm interested to know what type of reports you ran through the MLS system to maximize such a return on an investment. I find it so hard to find good buys through short sales...so many realtors in my market are flipping homes right now but there's still a huge market for it based on the lack of inventory and the quality of homes for sale.
So again, what MLS reports and data did you run to find your target neighborhood and such a great diamond in the ruff.
By the way, the that incentive on forgoing commission to motivate the listing...genius
@Allan Tamez - thanks, appreciate it. It's actually something more and more investors are doing, so now I'm also offering a 1% referral on the back end when I sell the house to try to continue to differentiate my offers over all the other offers agents are getting.
In my market almost everything that's priced even somewhat well is multiple offer on day 1, so I'm trying every trick I can think of to get them to go with my offer over someone elses.
3 main MLS searches I run every day: 1) everything under 230k, 2) short sales and foreclosures 220-280k, 3) short sales and foreclosures with 50+ DOM.
Based on the price points in a given market you would adjust those numbers accordingly.
@Jarrett Harris if it was something I was getting negative feedback from agents who showed the property, yes. I haven't found tree trimming to make any of my houses sell faster, so I generally leave it unless a) getting back feedback on it, or b) buyer or inspector make me do something with it.
So I'm curious on waiving your commission as the buyers agent...did this result in dual agency where the sellers agent presented your offer and acted as your agent? Or some other scenario ?
Also your 1% referral...do you mean you are kicking the buyers agent commission up 1% listed on the MLS to get more traffic?
@John Weidner Yeah that's right- they'd be the dual agent in this case since they're listing agent then also represent me as the buyer.
1% referral is the the listing agent when I purchase of the property. I offer them an additional 1% of the listing price at the sale of property when renovations are complete as an 'above and beyond' incentive to them.
Some agents don't care about these incentives at all... but for a percentage of them, it seems to make a difference.
Lol it's a small world. I actually had that Marion house under contract for close to $40k. The lender sold the note so we had to start the short sale over again. The short sale took forever and then they finally came back with mid $60s many months later and it was just too much for me.
Man I missed the ARV on that one. I would have never guessed $184k on it. You did a great job with it. Did you keep it a 2/1 (or convert/add on to it at all) ?