Wholesaler · Easley, SC · Member since 2010 · 340 posts · 249 votes
So I am going to jump on the diary band wagon and document my 4th flip. This is my third of this year and 1 last year.
Just got word from my agent that the bank has accepted my offer. Just waiting for the documents to sign right now.
Purchase Price: $120,000
Estimated Rehab:$20,509 This is my rough estimate based off my previous flips I will do my final estimate and budget during the inspection period.
Estimated FARV: $179,900
2800 sqft
4 bed 3 bath
Two of the bedrooms are master suites
Expected to be a light rehab with just paint, floor coverings, countertops,etc. My only concern right now is the previous contract with an owner occupant fell through due to the inspector saying " there are no ducts in the walls". This caused the lender backed out. This is a new one to me so I will just have to get in there and see what he was talking about.
Rental Property Investor · Yardley, PA · Member since 2008 · 1k+ posts · 561 votes
11y
Far from being annoying, this is one of the most entertaining thread I have read recently. When it looked like the deal was falling through I was quite disappointed. I was happy when it was resurrected.
This could be an episode of a TV show on HGTV, complete with the built-in plot complication.
Investor · Wilkes-Barre, PA · Member since 2014 · 179 posts · 42 votes
11y
Great spread sheet to estimate rehab costs. My biggest fear on rehabbing a house is overpaying the contractors and picking the best value contractor for the price.
Wholesaler · Easley, SC · Member since 2010 · 340 posts · 249 votes
11y
The home was re-listed Thursday at $119,500. I put an offer in that night for $110,000 no inspection period. We have not heard back yet but my offer expires Monday night.
@Larry Turowski I guess that is kind of an amusing statement showing a "rough" estimate rounded to the dollar. I have not gotten my final quotes in from my contractors so the numbers I have so far are my estimates based on my past rehabs. My final budget will be based off the quotes I get.
@Debra Leeson I won't be getting 3 quotes on every scope of work. I have a full time job while also running my rentals and flipping. I just can't find and meet with three contractors for every trade on every home. I look for guys who are what Dave Ramsey would call Teachers at Heart. If they take their time going through a home teaching me their trade then I know they are proud of their work.
I have a painter and handyman I have used on my past rehabs that are reasonably priced and do good work. As long as they continue to do good work and don't get crazy with their pricing I will continue to use them. We have worked together to create some great homes so far.
Both of these come in and quote the job immediately after I get the inspection done and build my SOW's. That way they now the job is coming and are ready to start the day I close. So far their prices have been in line with what I expect so they keep getting awarded the job. The only negative to my painter is that he is a one man operation and slow. I have tolerated this so far because he is so good and makes a house look great. He is moving back to New York in the spring so I will try to find a crew to replace him at that time.
I had a flooring contractor who had the same status but he just could not and would not maintain the level of quality control I expect. My last flip was the last time he will be used.
I have spoken with two new flooring contractors.
One had called me after seeing my name posted to the door of my last flip asking me to allow him to quote my next job. We set up an appointment and he was 30 minutes late. Strike one. I still allowed him to measure the home so I could see what his quote would come back as and he still has not sent it to me. Strike two. He also was a retail minded contractor. He didn't understand the rehabber/builder mindset of a balance between quality and cost. He kept constantly wanting to up sale me to whatever the special of the day is. Strike three.
The second flooring contractor was highly recommended by the local REIA. I spoke with him on the phone and we had a great conversation. I scheduled the meeting but the deal feel apart. I called him and canceled so I would not waste his time. If he shows up on time to our next meeting and can get his prices where I expect then he will be awarded the job.
I have an HVAC contractor I have been using for about a year on my rental properties. He does good work and his prices are fair. He will get a chance to quote the HVAC on this home but I will probably get at least a second quote to keep him honest.
I do not have a licensed Electrician or Plumber yet as I have not needed them so far.
My handyman has installed counter tops on my past flips using standard tops from Lowe's. The tops in this home are fairly complicated and not available from Lowe's. I have searched for a laminate counter top installer and it appears there is only one guy left. I had him quote the job and he came back at $1760. That is the kitchen and all 3 bathrooms. We have decided not to change the counter tops in the laundry room. When my handyman found out who I had quote it he highly recommended him and said that is who he uses for his complex jobs. Which makes sense because I could not find anyone else who builds and installs locally.
If I get the home back under contract or if I have time later in the week I will post all my SOW's and the bids I have so far.
@Kevin D. That is actually a laundry room/butlers pantry. We will be keeping it as the pass through seems to be a nice feature.
Okay if you stuck it out this long thanks. It really seems to help me think of things differently when I have to answer questions and put them to "paper" like this.
Investor · Columbus, OH · Member since 2014 · 74 posts · 23 votes
11y
Love what you said:
"I look for guys who are what Dave Ramsey would call Teachers at Heart. If they take their time going through a home teaching me their trade then I know they are proud of their work."
Great advise for my future. Thanks for the advise and good luck with your deal.
Wholesaler · Easley, SC · Member since 2010 · 340 posts · 249 votes
11y
The bank countered my offer yesterday with full list price and the listing agent let me know other offers are coming in. I am going to check with my agent and see if she will give me a discount on the selling fees since she is getting both the buying and selling fees. Waiting to hear back from her before submitting my best offer.
Wholesaler · Easley, SC · Member since 2010 · 340 posts · 249 votes
11y
Bank has countered $118k. My investors have agreed to take a reduction so we can get their money working and I raised my offer to $116k. Great learning experience. I should of requested a more feasible repair adjustment to price after the inspection came back. Don't get greedy just put a good deal together and get on with it.
Wholesaler · Easley, SC · Member since 2010 · 340 posts · 249 votes
11y
I really hope I am not annoying people with thread. It has gone from Diary of My 4th flip to an REO saga. Hopefully my experience will give people an idea of how things really happen in real estate as opposed to the late night infomercials.
Bank sent me the contract with everything as we had agreed. This included a closing for Oct. 31st.
Got this email from my agent today.
"Just a heads up. I spoke with Wendy xxxxxx at xxxx Law Firm this morning just to start the ball rolling. My concern was that the seller took so long to sign off on the contract last time and I don’t want Oct. 31st. to creep up on anyone.
Wendy said the foreclosure attorney that is handling the file for the bank is in the process of shutting down and that her last update from them (dated Oct. 14) indicated the compliance package would not be sent to a judge for 3-4 more weeks. This has to be done so that the judge can issue the deed and then it goes back to the banks atty for recording before we can move forward with closing. Wendy really thought we could be more than a month out of closing. She said they would try to intercept the deed after the judge has granted and then record with your closing…..and this might save a week or two.
With holidays quickly approaching….this could push closing into the end of November…possibly first of December. Is that a concern for you in carrying the property prior to being able to relist?
I have just confirmed with Joel that the per diem fee will not apply if it is a seller issue, of course."
So now I am expected to just sit on $120,000 dollars for a couple months so the bank can get title ready! I told my agent to go ahead and submit the contract with closing for the 31st. I will then only allow them to extend the contract in 2 week increments. If I get another offer accepted then I will just allow this contract to lapse. I am doing this because I am just now getting started on my marketing campaigns and the MLS competition has keep me slow the last several months. Better to keep this one tied up in case I can't find another opportunity for this cash.
Investor · San Carlos, CA · Member since 2014 · 41 posts · 37 votes
11y
@Chris C. - The thread is not annoying at all. I think people enjoy following someone else's deal and living through them in a way, while learning from the process and waiting for their next deal.
Rental Property Investor · Yardley, PA · Member since 2008 · 1k+ posts · 561 votes
11y
Far from being annoying, this is one of the most entertaining thread I have read recently. When it looked like the deal was falling through I was quite disappointed. I was happy when it was resurrected.
This could be an episode of a TV show on HGTV, complete with the built-in plot complication.
Wholesaler · Easley, SC · Member since 2010 · 340 posts · 249 votes
11y
New update. Seems like this house doesn't want me to rehab it.
My HVAC quotes are coming in a couple grand over budget. That's my fault cause I assumed I could go a cheap route knowing good and well that when it came down to it I would want it done right.
We have been doing weekly contract extensions but when we submitted the last one the seller countered wanting to extend through the 15th of December. I took this as an opportunity to drop another grand off the price. I am not a real big fan of banks thinking they can list a property knowing they have title issues and think people can just sit on hundreds of thousands of dollars like its no big deal. At this point I would be to concerned if I lost this deal. There are more.
The most concerning issue is that my handy man I have been using for several years now got pneumonia and is now in critical care. We had recently discussed what I was going to do when he decided to retire but I am afraid this is going to be much worse. He told me he wasn't going to be able to work for me anymore in a way that leads me to believe his condition is extremely serious.
He had quoted this home so now I will have to start the process of locating a new handyman and getting quotes. I am uncertain what someone else's rates are going to be since I have used him pretty much since I got started.
Wholesaler · Easley, SC · Member since 2010 · 340 posts · 249 votes
11y
Have been contacted by the seller and they don't know when they will have title issues sorted. I did not extend the contract and have gotten my Earnest Money back. Even though they have no idea how long it will take to get title sorted they immediately re listed the property. So for now I am out again and will continue to pursue the next deal.
Wholesaler · Easley, SC · Member since 2010 · 340 posts · 249 votes
11y
Thought I would throw in a quick update here. I have continued to watch this property on MLS and it still has not closed with the buyer who put it under contract after I dropped it.
On better news my direct mail has finally paid off and I have my next flip under contract. I will start a new thread about it and will post the link after I start it.