I want to get into rehabbing and flipping but I am worried about selling them as I got my *** handed to me from not being to sell the new construction I built several years ago so I am concerned about selling but hell some of you are are kicking butt. Thanks
Selling isn't too hard if you do your due diligence upfront and ensure that the properties you are buying/rehabbing are suited for the demographic of buyer that is prevalent in your area.
For example, if the typical buyer in your area is looking for a $150K ranch built in the past 20 years and you're trying to sell them a $300K split-level built in 1975, it doesn't matter how good of an agent you have.
The key is to know your market, know your buyers, and then to put out an under-priced product that targets that market...if you do that, selling will be the easy part of your business...
We completed 38 flips in the last year or so. About a dozen we flipped to investors, the rest to retail buyers - most were in the Atlanta market, but included four in Phoenix and one in Chicago. Our focus was buying REO properties, with an initial purchase price in the $40-75k range and average gross profit of around 27% after commissions, etc. Our rehab costs ran $7k - $25K depending on condition.
We currently have two left in Atlanta and one left in Phoenix that are rehabbed and on the market.
We we weren't sure how the market would turn (once the Obama Bucks program finsihed) so we went to cash over the summer and have been sitting on the sidelines. Looking to get back in the fall as we believe that priices are a little more stablized - with mortgage rates so low these entry level type properties are fairly simple flips if rehabbed correctly.
WOW, 38 in one year, that's like full time! I believe I only managed 9 in one year with me being directly involved in construction/rehab. You really need to deligate beyond that I would think, especially when it's not your main business focus.
You're right - we use GC's to rehab all of our properties.
Our responsibility focuses on locating the right property, project management of the rehab, and then get her sold!
We keep it very simple.
TTFN,
Greg
I haven't flipped any properties this year, but I did "flip off" one property this year, a rental that has cost me over $15,000 in rehab/repair costs this year. Does that count? :lol:
Come to think of it, I had one of those last year, but that one was over $18,000 because I had 3 months of payments and no rent!
From 03-07 we did a little north of 40 homes. Just started back up again and have three on the market right now. The plan is to do 3-5 per month and expand into different markets and maintain a similar volume.
Last year I did 6 flips. This year I will have completed 7. I can't imagine doing any more than that given my workload with the rentals (12, self managed) and being a broker.
My goal was to hit 25 rehab flips this year, and it looks like I will end up just south of that by year's end, mostly because the last month and probably the last 3 will be much slower.
I don't use GC's, and act as my own so managing more than 25 in one year is too much for me personally. Also, with the exception of one, I work alone and do not have the luxury of other partners to help manage more.
My acquisitions range from $180k-$400k this year so my entry price points are much higher than others.
2 single family flips sold to retail buyers, one rehabbed 4 unit that i owner financed and am selling the note, just finishing up a rehab on a 10 unit building that will be listed shortly as well on the MLS, and one other rehab that i have kept as a rental. i'm closing on a retail flip next week and negotiating with the bank on another...i enjoy the single family flips a lot more than the multi-units...
3 in '09
4 so far this year and I still maintain a 9-5 other job plus 3 SFR rentals. Once I do this full time I think the 10-15/year range would be a good balance of work load and income for my personal situation.
We'll flip around 50+ homes by the end of this year. I thought I was going to suprise the numbers here but it looks like Bryan beat me to the punch! Our CFO Kevin K, a reputable member on this site, has developed a model for us to find quality properties, sell Home Buyers their own Home thru Owner-Finnancing and provide our Note buyers an opportunity to purchase those notes on discount and build wealth in 5-10 years on avearage timespans(per deal)
We've been able to get back to flipping by purchasing correctly, filling HomeBuyers needs and then fullfilling Investor's needs through our Win-Win-Win system.
I have Flipped 10 out of my 12 properties, and preparing to close the other two. This has been so in the last 18 months here in Riverside County, Calif with average resale amount at $216,000. Market is extremely competitive, and is more then meets the eye. Who else is flipping out here on a regular basis?
I do 12 a year, average around $20,000 profit per deal including rehab, closing costs, interest, insurance, advertising, etc.
I've done 12 a year for the last 3 years, which is plenty to live on. My goal has been to double my volume, but I'm having a hard time finding good deals with a safe margin. People are paying too much for properties in my area right now.
For the guys doing more than 20 a year....wow! Are you doing rehabs, or wholesale flips? What kind of net margins? Impressive either way!
How are you guys mainly selling these rehabs? Are you just listing them thru agents?I want to get into rehabbing and flipping but I am worried about selling them as I got my *** handed to me from not being to sell the new construction I built several years ago so I am concerned about selling but hell some of you are are kicking butt. Thanks
I want to get into rehabbing and flipping but I am worried about selling them as I got my *** handed to me from not being to sell the new construction I built several years ago so I am concerned about selling but hell some of you are are kicking butt. Thanks
Selling isn't too hard if you do your due diligence upfront and ensure that the properties you are buying/rehabbing are suited for the demographic of buyer that is prevalent in your area.
For example, if the typical buyer in your area is looking for a $150K ranch built in the past 20 years and you're trying to sell them a $300K split-level built in 1975, it doesn't matter how good of an agent you have.
The key is to know your market, know your buyers, and then to put out an under-priced product that targets that market...if you do that, selling will be the easy part of your business...
WOW.
You all are very impressive and inspirational. I would like to say I am doing 4 to 5 this year. But, I am high centered getting my offers accepted.
Don