5 Flips Start to Finish!!!

67 Replies

@Andrew Cordle  , like everyone else said, this is such an amazing thread!  Thank you so much for giving of your time and experience for the rest of us to learn from!!  I have a few quick questions myself - the first general grouping of questions is about your business, the second is about one of the houses:

1) How did you go about putting together your team - through local REI or other RE networking groups?! Who are the different types of people on your team (and do any of them work for you?). How long did it take you to put together a group that you felt comfortable with?! I am just starting out....would someday love to do a flip....but don't yet know enough people! ;)

2) I was also wondering the same question that @Mark Breaux   was on that teardown - how did you decide that it was a teardown?  Also, how did you decide what the new house would look like (do you have a go-to floor plan for specific areas?!)

Thank you again - best of luck on all of these projects!  Looking forward to following along!

716‑362‑8717 | http://www.cbre.us/buffalo | NY Agent # 10401285580

Originally posted by @Julie Greene:

@Andrew Cordle  , like everyone else said, this is such an amazing thread!  Thank you so much for giving of your time and experience for the rest of us to learn from!!  I have a few quick questions myself - the first general grouping of questions is about your business, the second is about one of the houses:

1) How did you go about putting together your team - through local REI or other RE networking groups?! Who are the different types of people on your team (and do any of them work for you?). How long did it take you to put together a group that you felt comfortable with?! I am just starting out....would someday love to do a flip....but don't yet know enough people! ;)

2) I was also wondering the same question that @Mark Breaux   was on that teardown - how did you decide that it was a teardown?  Also, how did you decide what the new house would look like (do you have a go-to floor plan for specific areas?!)

Thank you again - best of luck on all of these projects!  Looking forward to following along!

 i can jump in and give you some feedback.

1. depends. if you are lucky to work in the construction field, you could do it in 1/10 of the time and get some great people to work for you. everyone's different. no set rule. i have spoken to contractors and they say "i have been doing this for 25 yrs and still looking for good help". so everyone's different. 

2. when the numbers make sense, it's a teardown. if you have the crew and your comps come at 200k+ ARV, AND you have the funds, it's a teardown. you dont have a crew? dont even attempt it.

Hey everyone, 

I apologize for the delay I have been traveling this past few days, I am hoping to answer all the questions on Sunday or Monday at the latest. 

Thanks so Much!!

Medium ac logoAndrew Cordle, Andrew Cordle | [email protected]

@Mark Breaux  

Thanks for the questions. Let me see if I can answer them. 

1. This house could go either way really as a tear down or a major rehab with an add on. But we decided to tear down to be able to get more on the backend. Of course new construction cost more but also demands more money.

2. There are houses around there selling for 400k even higher this house when it is listed may sale for around 420k

3. The house was on the market for 108k for less than a day. 

@Brendan Mylton   @Ben Nelson  

Thanks guys for the comments and you are correct 2 of those houses are teardowns.

@George P.

You have a very solid and good point as far as the yard goes. But when rehabbing or building it is very important to know who your buyers are. In this case the buyers are Yuppies, Guppies or DINKS so due to that fact the yard is mainly for entertaining. But again very good point you are making when it comes to RE. 

If you have any more questions please let me know, again I apologize for the delay as I have been traveling. 

Thanks

Andrew Cordle

Medium ac logoAndrew Cordle, Andrew Cordle | [email protected]

@Julie Greene

1) How did you go about putting together your team - through local REI or other RE networking groups?! Who are the different types of people on your team (and do any of them work for you?). How long did it take you to put together a group that you felt comfortable with?! I am just starting out....would someday love to do a flip....but don't yet know enough people! ;)


REI is a lot like other businesses it is all about who you know. Now a little different from say corporate world where it is about knowing the people at the top. This world of REI is about knowing who to call to get the job done. Sp putting your team together is very important part of the business. You can get your team more different places. REIAs are a good place to start but I doubt you will find everyone there. You will have to start networking to people who are actually rehabbing and building get around that crowd not the crowd that is talking about doing it. You can also visit your HD or Lowes Pro Desk and see who they are working with and if they can recommend any rehab contractors.

2) I was also wondering the same question that @Mark Breaux was on that teardown - how did you decide that it was a teardown? Also, how did you decide what the new house would look like (do you have a go-to floor plan for specific areas?!)


See the answer above for part one when I answered Mark, As far as 2. we don't persay have a go to floor plan as different lots require different houses. We of course have lots and houses/plans that we like but it all depends on the actual lot. 

You normally start with a survey

then you can get a designer to help with ideas as far as plans

then you go to a artichet and they will need your survey and ideas then they can begin crafting a house for you. Of course in most areas there is always a theme of houses meaning in ATL you don't see a lot of Arizona type of houses with Stucco or Texas style with stone so each area does have its own style that you will want to stay with. 

Hope that helps in short answer of course both of those questions we could talk about for hours but hopefully that puts you down the right path. 

Thanks and let me know if you have any other questions.

Medium ac logoAndrew Cordle, Andrew Cordle | [email protected]

@Andrew Cordle   I really appreciate you taking the time to answer my questions.  They were extremely helpful.  I look forward to following along as you continue to chronicle your flips!  

716‑362‑8717 | http://www.cbre.us/buffalo | NY Agent # 10401285580

subscribed and excited to learn.

@Andrew Cordle  I am looking at a property and wanted to put a bid on it before going to see it with a 10 day inspection. My agent says that I have to pay for an inspection in order to do that. Since I haven't seen others talk about this here and I know you have done this, how do you get around this? I don't want to actually pay for an inspection. I want to be able to put a bid on a property to get it locked up before wasting my time on drawing up concrete numbers on the repair. I have a decent estimate for a bid though. Thoughts?

@Mark Breaux

First sorry for the lost this weekend. ( I am a die hard SEC fan) 

I have never paid for an inspection in order to be given a 10 day inspection allowance. NOT saying that it couldn't happen. What I would do is call my agent and ask them is this something that the BOR is making her do or is this some kind of new RE law that I have to do it. 

Sometimes, agents will request certain items because they think they know best. And I am not saying that they don't for regular home buyers but they do not always know best for the investor. And sometimes they treat everyone the same. 

Saying all this, I would just simply ask the realtor for now and pin her/him down on is it a requirement by BOR? Not just an idea or opinion. 

Lastly, if you really like this house and you have not done several flips to have an inspector out there to check on everything is not a bad idea I can tell you that there are many times I wish I would have done that. 

Let me know if you need anything else.


AC

Medium ac logoAndrew Cordle, Andrew Cordle | [email protected]

@Andrew Cordle  

 Thanks for the empathy on the loss! It was hard to see but maybe it will help us turn a corner and win the rest! Its the beauty of the playoff!

So I did some quick research. It looks like different states require different things...why i didn't think of it before I am not sure but hopefully someone else out there learns from this and checks the state laws. Kansas and Missouri require a qualified, independent inspector and the report to be attached if I choose to terminate the contract. So either A) I have to pay for the inspection and use money up even if I don't buy it or B) have my GC do an inspection before the offer gets put in and then go from there.

I would like to do the inspection but I also don't want to depend on it so to speak for purchase price. That would be a big expense to have per house I look at it.

@Andrew Cordle  awesome thread you have started here!! Very helpful!!

@Mark Breaux  you do not have to pay for an inspection in order to put a property under contract. I think what your realtor is trying to say is that, if you do decide to terminate the contract during your due diligence period, you may have to show the seller an inspection report of your findings and the reason you want to cancel. Now, this is not required either, but I think that may be what she is trying to say.

@Michael Baradell  

The property is in missouri. Here is the Real Estate contract in that state. I could be reading it wrong but it appears I have to.

http://missourirealtor.org/wp-content/uploads/RES-2000-Contract-for-Sale-of-Residential-Real-Estate.pdf

Thanks for sharing this thread. Very inspiring

This was a great post @Andrew Cordle ! Thanks for taking the time to explain/display the various phases.  I'm curious if there has been any additional update?  I would love to see more.

@Andrew Cordle - Is there any more updates?  Truly this thread was very instructive to many.  Thanks for taking it this far. More updates appreciated.

thanks for sharing.look forward to more updates

Andrew, I wonder if there is any update on the project. I live in Grant Park, and was walking past 417 Augusta today, which brought me to this forum. Several new homes have been built on that corner, with a sign saying that more are scheduled, and it gives me the impression that the beautiful Victorian will be lost, Just curious!