Just closed my second flip!!!

8 Replies

Super excited! My first flip was a nightmare! but I learned a ton! I sought the advice of BP members and they encouraged me to push forward. My nightmare flip is documented in the thread titled @newbie can't sell flip. I'm hoping to redeem myself with this one. wish me luck. I'm hoping to post a success story soon. Here are the numbers:

$70k purchase price

$10k repair cost

$5k misc/realtor fees/ adv fees etc

$120k ARV

Congrats on pushing forward! How did you find this deal? Direct mail, MLS, Wholesaler? How big is the house? Do you have pictures? I am worried about the numbers being too tight. $10,000 in rehab seems like a really small number. I would be challenged to paint and put new flooring down for less than $15,000. What do you plan to do with the $10,000?

Realtors fees alone will be $7,200 on $120,000. On this size deal I budget $15,000 for realtor fees, closing costs, taxes, and utilities (assumes you paid cash). If you can get $120,000 on this house with only $10,000 of work, I would list it with a realtor for $115,000 (assuming you did not buy it on MLS) without putting any money in it and see if you can sell it as is. Less risk and sounds like you could make more than if you fix it and you will be in the peak of selling season. Just a thought. Good luck!

Originally posted by @Rodney Marcantel :

@Katie Neason , not everyone pays 6% although that's the norm. My power team RE agent and I have negotiated 5%. So maybe @Belinda R. can negotiate as well if she hasn't done so already.

 If you're an investor you can usually negotiate a lesser fee (less than 6%) using the possibility of repeat business as a negotiation tactic. It often means less work for the agent as investors tend to help streamline the process (not having to remind the seller for the fourth time to clean up the place before you can take pictures, etc.)

Originally posted by @Katie Neason :

Congrats on pushing forward! How did you find this deal? Direct mail, MLS, Wholesaler? How big is the house? Do you have pictures? I am worried about the numbers being too tight. $10,000 in rehab seems like a really small number. I would be challenged to paint and put new flooring down for less than $15,000. What do you plan to do with the $10,000?

Realtors fees alone will be $7,200 on $120,000. On this size deal I budget $15,000 for realtor fees, closing costs, taxes, and utilities (assumes you paid cash). If you can get $120,000 on this house with only $10,000 of work, I would list it with a realtor for $115,000 (assuming you did not buy it on MLS) without putting any money in it and see if you can sell it as is. Less risk and sounds like you could make more than if you fix it and you will be in the peak of selling season. Just a thought. Good luck!

Cash deal. Minor rehab. Desirable neighborhood. Mostly paint and carpet and minor repairs. I've received quotes already and I'll be coming in bw 10k-13k. House is 9 years old, so there's nothing major needing repair. Ive negotiated a low flat listing fee to list bc I use the same realtor to purchase investment properties and primary residence. I'll pay 3-3.5% buyer agent fee. Avg DOM for subdivision is <90 days. 

Originally posted by @John Powell :

What repairs are you getting into?

 Cash deal. Minor rehab. Desirable neighborhood. Mostly paint and carpet and minor repairs. I've received quotes already and I'll be coming in bw 10k-13k. House is 9 years old, so there's nothing major needing repair. Ive negotiated a low flat listing fee to list bc I use the same realtor to purchase investment properties and primary residence. I'll pay 3-3.5% buyer agent fee. Avg DOM for subdivision is <90 days.

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