Flipping, so easy a monkey can do it!

[Jerryll Noorden]

 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

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. 

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!

I parked my butt right there!

Tasks:

• Cleared the place out
• Demo'ed walls
• Removed carpet

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

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.

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!