Flipping, so easy a monkey can do it!

59 Replies

 Make a bunch of money doing a flip! OK ok ok, easier said than done right?

Well let me try to help. You will need some money. The best way to get money  is by doing a flip! So only for that reason, will I share how to do a flip! Remember I talk big.. but  have NO clue what I am doing, but it is still fun and exciting ain't it? 

OK my silly little gringos! So many of you write me and say, Ohh mighty MSOOTKAUG, can you teach me how to be a good little investor?

And I say .. No you selfish mutt, go ask someone who cares! No not really ^_^

So Let me just share what I am currently doing.

So Thing are a bit hectic for me. Long story short.  The house we bought is about 2 hours away, and I have no time to drive all the way there so often, my rental contract has expired and don't want to renew it, so I decided to run a little experiment. Can you cheap out on rent and live in the house you are flipping.. rent free? So I figure, heck, this can be fun so let me try it and see how long i will last without a shower!

I see posts everywhere how to flip houses and then always regurgutated material follows.

How about something a bit more valuable. How about How I find off market properties, run the numbers, make an offer, sign the contract, find contractors, flip the house, list the house sell the house, take the money, fly to thailand, ad eat questionable but highly interessant food? Who does NOT want to follow that adventure?!

OK so lets begin.

We Bought A House In Stafford Springs CT

First, some background. This house is in Stafford Springs CT. Small house, 1008 sq ft, 1 acre of land. 

The Numbers:

  • Purchase price: $41K
  • Cost of Repairs: $48K
  • ARV: $160K-$170K
  • Estimated profits: $40K
  • Project Duration: 35 days

How We Bought This House:

A good flip starts with a good purchase price. Well we did kind of a bad job here. We cut the numbers a bit too close. As long nothing goes wrong (yeah I know ... what ever!). I won't go into too much detail here so I will just list the steps.

1. Seller Finds Us Online

We have the best real estate website in the world, because fairies did our SEO.  Enough said! Needless to say we get many leads so sooner than later a good lead always falls in our laps. So one did!

2. We Do Our Due Diligence

I sent my agent this information and she started working on the comps:

This is what happens when you have solid agent seducing skillsz homie! She (because all agents are female...) is awesome! 

3. We Make Our Best Offer

Here is where we differ significantly from other investors. Most if not all investors will low ball the sellers. We just give our highest and best offers the first time, every time.And don't you dare stealing this. This is our slogan. 

"Our Highest And Best Offer, The First Time, Every Time!"

Awesome, I know!!

Now we have the ARV and a repair quote. After facturing in holding cost, insurance on the house selling costs, agent fees we can now make a great offer. We make this a very simple process to be honest. We just assume that al the costs involved with selling a house is 10% of the ARV. So for this case, if we sold the house for $170,000 after the repairs the selling cost would be $17,000. This includes realtor commissions.

4. Sign Contract & Close Escrow

We often get our offers accepted as we do give amazing offers, and we closed ASAP. This concludes the buying process and now we are ready to put on our flipping hats!

How We Flip This House

Before getting too excited, calm down buttercup! We need a plan of action! (I will assume you have a good contractor).

  • Get A Solid Contact
  • Divide The Scope Of Work Into several phases
  • Set your deadline
  • Set Up Payment agreements With Contractor For Each Phase
  • Set A Starting Date IN WRITING
  • Set A Finish Date IN WRITING
  • Sign Lien Waiver Form BEFORE submitting payment for EVERYONE that worked on the house!
  • Pay them suckers!

Phase 1: Demo/Interior Framing layout walls and rooms. [10 days]

  • Demo whole house/clean up interior
  • Expand walkway between living room to eating are by 3 feet (install new header)
  • Frame up new laundry area, frame bedroom wall
  • Frame up new patio sliding rough opening and install new sliding patio door
  • Fix water damage floor in hallway
  • Tile bathroom floor and walls
  • Install rough electrical throughout house.
  • Install rough plumbing throughout house.
  • Install insulation and drywall sheetrock
  • Measure windows/door. Place order for items

*Material cost of this section: Seven Thousand Dollars. $7,000,-

Phase 2: Roofing/Exterior Windows and doors. [5 days]

  • Close up external side door between living room and kitchen, patch siding, patch wall
  • Replace windows, replace front entry door, power wash house/deck
  • Restoration of vinyl siding which includes power washing and replace any missing pieces of siding.

*Material cost of this section: Eight Thousand Nine Hundred and Sixty-four Dollars. $8,964,-

Phase 3: Interior paint/ Install kitchen cabinets and granite countertops. [5 days]

  • Install bathroom vanities, toilets, sinks, tubs.
  • Install hardwood flooring, Install baseboard heating, electrical, and plumbing.

*Material cost of this section: Eight Thousand Nine Hundred and Sixty-four Dollars. $8,964.-

Phase 4: Flooring and other... Stuff! [5 days]

  • Final installation of lighting fixtures and electrical plates.
  • Final hardware of doors and cabinets which includes knobs, hinges, plates.
  • Interior trim work.

*Material cost of this section: One Thousand Two Hundred Dollars. $1,200.-

Don’t forget the payment plan. This is important to avoid issues with contractors! (see above in green text)

We are set! Let’s Flip This House

OK are we doing this or what!? Let's flip this friggin house! 

… So I moved in!

Day 1: Monday May 14, 2018 -The As Is Condition.

Not much was done but still an important task. Contractors and subs walked the house and got a visual. They pretty much made sure what size dumpster we needed.

Tasks:

  • Ordered Dumpster

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Day 2: Tuesday May 15 2018 – Subs come in to evaluate

Dumpster arrived. These Mexi's are awesome. Best contractors we ever had. I am keeping them! Got here early, started clearing the place.Filled a 30 yard dumpster in half a day! Andale Chamo!

In other news, I set up my SEO station. 

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SEO (Seriously Evil Ostrich) is important. And bad stuff will happen when you don't take it seriously.

Claned the nasty bathroom best I could. There was poops all over the place man. Nasty!

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I parked my butt right there!

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Tasks:

  • Cleared the place out
  • Demo'ed walls
  • Removed carpet
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Day 3: Wednesday May 16 2018 – Here come the issues…

Washer and Dryer were in the kitchen.. whaaaaaaa?? So that wouldn't fly. We are building a  laundry/ water heater/pantry section which just has a better overall flow of the house.

Tasks:

  • Demo Bathroom
  • Framing
  • Closing a room back up
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Day 4: Thursday May 17 2018 – Here come the issues…

Of course something always goes wrong &$(@@^%)#! Damn plumbing.

Tasks:

  • Finishing framing
  • Put in Front Door
  • Closing side door
  • Cutting out back door
  • Widening kitchen entry
  • Putting in front door.
Replacing Front Door Fixing Rot

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French Back Door

Widened Entry To Kitchen

Closed The Side Exit Door IMG_2775 IMG_2776 IMG_2777

No running water at the house, no bathroom and no toilet, no shower. Who wants to smell me now! I will go to the gym and shower there… I guess!

And now we are up to date.

Tomorrow more on this!

Good morning Jerryll,

Hilarious title and great post! 

Documenting every step gives tons of value to the readers... 

Keep doing your thing!

-Abel

@Jerryll Noorden

Just found out where Stafford Springs is.

You are going to make some bank on this one.

My advice for the bathroom: change out the toilet for an elongated bowl model. If you can use Shark Bites or do basic copper pipe sweating, you can also dig into the wet wall easily, rip out the Moen valve, spout, and head, and hang a shower tower in that bathroom. For $200, you can do very well with the shower towers, but if you have to pay a plumber to put one in, it often eats up the huge gains to be made. In Stafford Springs, I don't know if you're going to find the right guy who will do it properly for not-so-much money.

Good luck, and thanks for posting.

This post has been removed.

This post has been removed.

Originally posted by @Jim K. :

@Jerryll Noorden

Just found out where Stafford Springs is.

You are going to make some bank on this one.

My advice for the bathroom: change out the toilet for an elongated bowl model. If you can use Shark Bites or do basic copper pipe sweating, you can also dig into the wet wall easily, rip out the Moen valve, spout, and head, and hang a shower tower in that bathroom. For $200, you can do very well with the shower towers, but if you have to pay a plumber to put one in, it often eats up the huge gains to be made. In Stafford Springs, I don't know if you're going to find the right guy who will do it properly for not-so-much money.

Good luck, and thanks for posting.

Man, that is a great idea. I am going to look up elongated toilets. These guys move fast, I hope the material is not already ordered. Seriously please keep checking this post. I would love more of your suggestions as we proceed man!

... looking up "Shower tower"

Originally posted by @Abel Curiel :

Good morning Jerryll,

Hilarious title and great post! 

Documenting every step gives tons of value to the readers... 

Keep doing your thing!

-Abel

 Dude!

Abel is a rockstar name. Its like you were born for investing.

I can see the slogan now. We are Abel investors.HEEEEEY hey hey  heyyyy... Find a partner called Willing!

Abel & Willing! 

Duuuuuude!!!

thanks man. Yeah I will keep documenting as I go.

Nice start man! Best of luck to you... Love reading your posts, informative AND entertaining. Keep up the good work!
Originally posted by @Jason DiClemente :
Nice start man! Best of luck to you... Love reading your posts, informative AND entertaining. Keep up the good work!

 Thanks brother. I really appreciate that coming from you. You are one of the few I look up to!

I was in Thailand in Feb.. but its a cool country.. and great people and food that's for sure.. cheap is relative.. but we were at a high end resort..

as for your rehab.. sounds like you have a nice plan.. stick to it.

I need you to teach me how to use the internet like U do... how much do you charge ? and do you take amex.

Great and informative thread... good points have been raised and you're very organized... You almost make it look easy to do!!!! bawhahahah We both know you earn every cent from flip...

Originally posted by @Jay Hinrichs :

I was in Thailand in Feb.. but its a cool country.. and great people and food that's for sure.. cheap is relative.. but we were at a high end resort..

as for your rehab.. sounds like you have a nice plan.. stick to it.

I need you to teach me how to use the internet like U do... how much do you charge ? and do you take amex.

I m doing 2 flip now, maybe starting a third. When all these flips are done, I am gig to thailand and I will make it a mission to poke a lady dude with a stick.  I was not joking when I chose "Thailand" I have hustled like a crazed monkey and although you all only see my humorous side, I have suffered a great deal getting where I am. When these flips are over I am GOING!!

As for internet..  I will teach you anything you want to learn, my precious

and I am really making that face now!

Just buy me a Shirley Temple!

Originally posted by @Steve S. :

Great and informative thread... good points have been raised and you're very organized... You almost make it look easy to do!!!! bawhahahah We both know you earn every cent from flip...

 make it LOOK easy? Pfft it IS easy... 

yeah right!!

^_^

Some things already went wrong pampa ka kaolo. (Is it ok to swear in an other language?) Its the same things as  "if a tree falls in the forest and no one's around, does it make noise?"

If no one can understand said swearing.. is it reallllly swearing?

What if I make up my own swear word? Is THAT allowed?

OK then. FluugerHeimer!! That is the new swear word on this blog! You are welcome!

BTW, the actual answer is "No, it does not make noise". Noise is relative. Someone needs to BE there to hear it for them to label it "noise" or not.

Does it make sound, yes baybee, it does.

You are welcome!

Something always goes wrong... there's ALWAYS hold ups.... love watching those "flip" shows where producers make it look to smell like roses when really they're sitting in a pile of FluugerHeimer!

'bout 4 years ago I thought I was going to partner with someone who was interested in flips and renos. When I started running the numbers he said I was "too high" and we could trim the fat and still make profit. I walked from the partnership. I'm not willing to take on a loss just to take on a project.

Hope it turns around for you... I like the project so far and the narrative is far more enjoyable than most other stuff I have read in recent posts. 

Personally I love reading threads about people who are willing to roll up their sleeves and put in some work. Far cry from the 1000's of "I want to get into REI but have no funds... how can I do this? or I found this fantastic deal.. but I don't have the financing" stuff...

Props to you by earning the equity with a little sweat grease!

Remember me telling you I moved in?

1) Walk around the construction site. 

2) Find a few twigs a piece of gum and 2 elastic bands.

3) If you can't find these items, thats ok, you don't need them. If you found these items, damn! Throw them away anyways, you still don't need them!

4)  Let the gears turn

I am "Glad" I found you! (Get it? Glad? huh? huh?)

5) Place found chair 1 like so.

6) Place found chair 2 like so. And mind the angle. It is 36,7 degrees

7)Place dirty bucket like so:

8) Don't make my mistake.Make sure there is no sleeping wildlife in said bucket, as they will have a very very rude awakening, and you don't want a bad tempered critter going berserk.. in the position you will be in. Trust me, you do not want to. I know it looks like a good time, but you will regret it, take it from me,  I know!

9) Place bag inside and over bucket.

10) See this?

11) Do this:

Oh shut up. 

Be happy I showed you the before picture, and not the after picture!

You are welcome!

P.S. I am seriously debating whether I should leave  the present there for my contractor to find.

It would be FUUUU   NYYYY!!!!

Ohh this may come in handy too when you have to hold it for long periods of time...

This post has been removed.

Originally posted by @Steve S. :

Something always goes wrong... there's ALWAYS hold ups.... love watching those "flip" shows where producers make it look to smell like roses when really they're sitting in a pile of FluugerHeimer!

'bout 4 years ago I thought I was going to partner with someone who was interested in flips and renos. When I started running the numbers he said I was "too high" and we could trim the fat and still make profit. I walked from the partnership. I'm not willing to take on a loss just to take on a project.

Hope it turns around for you... I like the project so far and the narrative is far more enjoyable than most other stuff I have read in recent posts. 

Personally I love reading threads about people who are willing to roll up their sleeves and put in some work. Far cry from the 1000's of "I want to get into REI but have no funds... how can I do this? or I found this fantastic deal.. but I don't have the financing" stuff...

Props to you by earning the equity with a little sweat grease!

 Yeah, many people just wing it and do things without thinking. Good you walked away. It is often really hard to do man!

Haa.. exactly. People ask me for help with Seriously Evil Ostriches (SEO) and I tell them what to do and this is what I  get in return "Ohh I dont have time to do that, oh that is too hard, ohh that is just not me.."

Crazy crazy!! People make no sense often!

but Thailand is cheap, you can just buy and hold and instead of dealing with the flip work you could already be in thailand 

Source: I buy and hold and just did 5 weeks in Thailand ;)

Originally posted by @Adrian Stamer :

but Thailand is cheap, you can just buy and hold and instead of dealing with the flip work you could already be in thailand 

Source: I buy and hold and just did 5 weeks in Thailand ;)

 I don't think we as none thais can buy houses there can we?

Originally posted by @Account Closed :

Lots of flipping going on in Bangkok. 😂

 would be fun flipping a few there!

Originally posted by @Jerryll Noorden :
Originally posted by @Adrian Stamer:

but Thailand is cheap, you can just buy and hold and instead of dealing with the flip work you could already be in thailand staring at the ladyboys 

Source: I buy and hold and just did 5 weeks in Thailand ;)

 I don't think we as none thais can buy houses there can we?

 You are correct... buy in the US, spend in thailand

Day 5: Friday May 18 2018 – Checking Out The Plumbing

The French door arrived. What a beauty.Time to deal with the dip in the floor. We removed the plywood flooring and

Tasks:

  • Opening Floors To Access And Evaluate Plumbing
  • Put in Back French Door
  • Closing side door

This is what I love most about flipping. You come across a POS house and you get to design it and make it look amazing with clever choices and finishes. The challenge is to remain in budget which makes it a lot of fun. You look at the house and then come up with improvements/changes, that would fit that particular house feel and flow. Just a simple change like a back door completely changed the feel of the house. I think any buyer that walks in will absolutely LOVE the feel and the light that suddenly rushes into the house!

We knew from our first walk through that the floors had some issues where the well pump was. We figured it was leaking and the floor in that corner gave in.

However when we opened it all up.... this is what we found.

They used irrigation pipes to plumb the kitchen. For Pete's sake!

But of course this is not all. Would have been too easy!

None of the plumbing in the bathroom was connected. So the poopies just dropped to the floor under the house. And due to the vapor barrier, (a huge plastic sheet) all the little (and not so little ) poopies stayed nice moist and fresh!

And and AND,

They used a baseboard electrical heater under the house (I guess to keep the pipes from freezing?) and powered it with an extension cord.

How awesome is that!

Now we are waiting for a new quote from the plumber to fix it all...

This concludes the first week (5 days) of our rehab. Not bad really. Excited and lots of fun... thus far...

It's not polite at all to use the N***** word nor Gringo!   

Gringo refers to someone who is foreign and English particularly someone from the United States often disparagingly!

No need to be offensive.

Originally posted by @Mike Anderson :

It's not polite at all to use the N***** word nor Gringo!   

Gringo refers to someone who is foreign and English particularly someone from the United States often disparagingly!

No need to be offensive.

You send me the exact email in private. 

Look my man.

http://www.alwaysagringa.com/2017/07/12/gringo-mea...

I sent this to you personally, and I will send it here.

Any word can be used offensively in an offensive context. If I call you all my silly little gringos it means I love you!  ;)

Heck I call myself monkey all the time. I guess that is offensive too! Chillax ese! have a beer enjoy the post be happy :)

Seriously. just enjoy my flipping adventures. I will watch my words from now on okay?

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