Luxury Home Fix and Flips
Hey BP!
I am a Real Estate Agent in Arizona and specialize in luxury property sales in Scottsdale, Phoenix, and Paradise Valley.
I have been researching different real estate investing methods for years and have learned a lot about multi-family as well as rehabbing/ flipping. However, I have realized that most of the people that do flips stay in fairly low price brackets.
Does any one have experience in doing luxury home flips ? I have only heard from one individual that focuses on this niche, and he's had great success with massive profits. I would like to hear from others.
I am aware of the pros and cons of going this route, but would appreciate any feedback from those who have done or currently do investments of this kind.
Thank you!
-Hannah Hammond
Hello Hannah, I am not yet an agent but new to RE working for an investment/wholesale company in Scottsdale that recently did a flip in Arcadia in the "luxury" niche. I too am interested in focusing on luxury property sales and would love to learn more!
Hi Hannah! I'm also an agent and would love to learn about the luxury flips as well. Keep me posted!
You guys who are agents and want to get into the luxury house sales? It is a niche that you really have to know the market and all those luxuries that make up the house. It is totally a different mind set. I had the privilege of knowing three beautiful women whos' executive, 6 figure income, husbands that past unexpectedly, got into fix and flip luxury homes priced above $1 mil.. They would purchase foreclosures and poorly maintained houses for half of what they were worth. Then hire a general contractor that specializes in luxury homes to do the rehab. It usually took 6 to 12 months to complete a project. We are talking upwards of $50,000 appliance, baths at $100,000 up, Kitchens easily above $100,000 and landscaping over $100,000. They used thier own money to purchase and rehab. They bought properties over $1 mil. and sold them over $5 mil.. And that was one property a year.
If you want the training, I can hook you up with an Office Manager for Keller Williams Realty. They have free training and coaching for Luxury homes. Send me a message and I will get you in touch with the right people. Thanks.
Originally posted by @Mike Sedlacek:
You guys who are agents and want to get into the luxury house sales? It is a niche that you really have to know the market and all those luxuries that make up the house. It is totally a different mind set. I had the privilege of knowing three beautiful women whos' executive, 6 figure income, husbands that past unexpectedly, got into fix and flip luxury homes priced above $1 mil.. They would purchase foreclosures and poorly maintained houses for half of what they were worth. Then hire a general contractor that specializes in luxury homes to do the rehab. It usually took 6 to 12 months to complete a project. We are talking upwards of $50,000 appliance, baths at $100,000 up, Kitchens easily above $100,000 and landscaping over $100,000. They used thier own money to purchase and rehab. They bought properties over $1 mil. and sold them over $5 mil.. And that was one property a year.
If you want the training, I can hook you up with an Office Manager for Keller Williams Realty. They have free training and coaching for Luxury homes. Send me a message and I will get you in touch with the right people. Thanks.
Thank you for your input Mike! I am already an agent that specializes in luxury home sales, I am just inquiring about experiences doing luxury flips. I hang my license with KW and do attend their training classes as well. It sounds like that woman is successful at luxury home flipping.. I appreciate you sharing that with us, thank you!
Hi again Hannah, only real issue I'm finding is that's it's becoming increasingly difficult to find properties for sale that you can make money on especially with all cash purchase. Luxury niche in Arcadia, PV, Scottsdale seems to be maxed on price right now with fewer buyers than say $250K-$300k sweet spot.
I've done a really cheap $150k flip in Garfield district and another $350k flip off Chaparral/Hayden, but really tempted to go big! I know more risk because not as many buyers, but if you do it right, and I mean right...higher end fixtures that you list the name of when selling the property, along with great floor plan and all the bells and whistles, should be bigger payoff!!
Keep in touch and let me know if you find any luxury rehabs available?
Originally posted by @Brandon Gowen:
Hi again Hannah, only real issue I'm finding is that's it's becoming increasingly difficult to find properties for sale that you can make money on especially with all cash purchase. Luxury niche in Arcadia, PV, Scottsdale seems to be maxed on price right now with fewer buyers than say $250K-$300k sweet spot.
I've done a really cheap $150k flip in Garfield district and another $350k flip off Chaparral/Hayden, but really tempted to go big! I know more risk because not as many buyers, but if you do it right, and I mean right...higher end fixtures that you list the name of when selling the property, along with great floor plan and all the bells and whistles, should be bigger payoff!!
Keep in touch and let me know if you find any luxury rehabs available?
Hi Brandon,
I do agree with you, luckily I have the experience of the luxury market here, the connections and the resources to find the luxury rehabs and sell them as quickly as possible once completed. The biggest factor for me to consider is the funding, I would have to have private funding in order to go this route which would eat into the profits, especially with the longer holding period and pricier holding costs, but I think it would still be extremely profitable, if done right.
Hannah,
Ask Charlie Stidham how he's doing with his listing in McCormick ranch. :)
As I'm sure you're aware, luxury homes in Phoenix are depreciating in value right now. Too much inventory. DOM are high. Definitely requires a large risk appetite.
If I were doing luxury flips, I'd stick to Arcadia but even that area is becoming too saturated.
This is my ultimate goal...luxury flips!
I am in the middle of my first.
$685k purchase price
$350k rehab
$1.5m ARV
I would be lying if I said it wasn't a little scary to be carrying the monthly hard money fees I am carrying and knowing how soft and fickle the top end of the market can be.
Originally posted by @Joe Bertolino:
I am in the middle of my first.
$685k purchase price
$350k rehab
$1.5m ARVI would be lying if I said it wasn't a little scary to be carrying the monthly hard money fees I am carrying and knowing how soft and fickle the top end of the market can be.
Joe, thank you for sharing! Please keep us posted on the process of your rehab and sale... I would love to know what the results are and any do's and don'ts that you discover along the way :)
#2 New Member Introductions Contributor
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- Rockland, MA
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#2 New Member Introductions Contributor
- Specialist
- Rockland, MA
Welcome. Take a good look at student housing see below.
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). Find them through Google and meetup.com
Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook
You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
Good Luck
Paul
#3 Contractors Contributor
- Contractor
- Los Angeles, CA
How does student housing relate to this post? The OP is looking for inputs in luxury flips, not a sidetrack of student housing.
