Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
Just wanted to mention my latest deal (and will track updates), as it was another collaboration between several BP members. Don't want to mention names without permission, but the deal was found and put under contract by another BP member -- it's a hoarder house in Owings Mills, a suburban part of Baltimore County.
The BP member wanted to wholesale it to me, but I suggested partnering instead. We agreed that I'd purchase the property for the price that she had it under contract, we'd work together to trash it out, and then we'd sell it to another investor as a flip or a rental (what some would call a "wholetail"). We'll then split the profit 50/50.
The trash out will be done by another BP member who has done a bunch of work for me over the past few months.
And, who knows, perhaps we'll find an end-buyer for the deal here on BP as well...
Here are some pics...it's actually a great house underneath all the mess:
Rental Property Investor · Boca Raton, FL · Member since 2014 · 1k+ posts · 713 votes
11y
@J Scott Looks promising... Whats the ERV and ARV? I bet you can finance most of the project by returning all of those plastic bottles. Throw in the Red Wing boots, and it may be enough.
Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
11y
In the pile in the first pic, I see Dr. Pepper and Ruffles, what are the yellow balled up wrappers? Hamburger wrappers? So curious about that lifestyle...
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
11y
Originally posted by @Jon Huber:
Whats the ERV and ARV?
To be honest, I have no idea... :-)
I saw the property for literally 10 minutes (the house was so full of stuff when I saw it that I couldn't see anything), and the wholesaler wanted a quick answer before she started shopping it around to the rest of her network (she gave me first dibs). I was busy with other stuff, and didn't have time to run the numbers, but my gut told me that if we cleaned it out and there weren't any major issues (I didn't see signs of any), we could make a few bucks. So, I signed the contract.
Fast forward two months to last week when the title company sent me an email saying they were ready to close, and I had pretty much forgotten about the property... :-)
Went to closing today, and once the deal was closed, I asked the seller about the history of the property. According to the seller, the house is in great shape -- no water in the basement, no structural issues, no major electrical/plumbing issues, etc. It's just full of crap (somewhat literally if you look at that bathroom picture) and cosmetically outdated.
I stopped by the house on the way back from closing and was pleasantly surprised to see that he had actually removed a bunch of crap and that from what I could see, he was honest about the house being in great structural shape.
I imagine we'll spend $3-5K on trash out (dumpsters and labor), and then resell it. But, I don't know the ARV and I haven't done a full rehab estimate. Though I suspect it's a $25K renovation to get it into rental shape and $45K to get it into retail shape (based on similar rehabs I've done in this area). There are also a number of rehab/flips in the area where investors have done additions, so I imagine that could be an attractive rehab plan for the right investor.
Long story short, I took a chance on this one and haven't yet done the analysis. Hopefully make a few thousand dollars reselling after trash out, but worst case, I'm pretty sure the numbers would be great as a rental, so if my gut is wrong about my wholetail strategy, I'll just keep it as a rental.
In the pile in the first pic, I see Dr. Pepper and Ruffles, what are the yellow balled up wrappers? Hamburger wrappers? So curious about that lifestyle...
Investor and Real Estate Agent · Maize, KS · Member since 2014 · 270 posts · 53 votes
11y
Is there anything valuable in the house ? I bought a similar place last year ; hired an estate sale team to clear it out and sold $8000 worth of what looked like hoarding junk. The estate sale team took close to 30% and I walked with over $5000 in my pocket and got the mess cleaned out for me ;)
Is there anything valuable in the house ? I bought a similar place last year ; hired an estate sale team to clear it out and sold $8000 worth of what looked like hoarding junk. The estate sale team took close to 30% and I walked with over $5000 in my pocket and got the mess cleaned out for me ;)
I estimate someone could make $1-3K if they worked hard at selling the stuff in there (there are lots of comic books and unopened action figure boxes, so potentially there's something much more valuable as well). But, I'm not willing to spend days sorting through the stuff for $1-3K...
But, I'll happily give someone else 30% to do it! :)
Investor · SE Wisconsin/NE Illinois · Member since 2012 · 109 posts · 57 votes
11y
wow, that first bathroom picture...what happened for it to get like that? Was someone living there when you put it under contract or had the house been vacant? Are you able to share numbers on the property?
In the pile in the first pic, I see Dr. Pepper and Ruffles, what are the yellow balled up wrappers? Hamburger wrappers? So curious about that lifestyle...
Yup, crumpled cheeseburger wrappers...
Looks like the yellow ones are McChicken sandwiches. The white ones are definatly double cheese burgers. This thread makes me want to stop eating at mcdonalds. For what this guy spent on garbage he could have paid off the house. Im glad you guys are stepping in to alleviate it.
Investor · Meridian, ID · Member since 2013 · 133 posts · 50 votes
11y
Wow, looks like it has good bones, though. I had one a few months ago, but not quite as bad. Am getting one under contract now that is loaded with enough leftovers to have a good yard sale and make a few $100. I'm glad we can't smell that :-)
Flipper/Rehabber · Elkhart, IN · Member since 2014 · 197 posts · 41 votes
11y
I agree with @J Scott it takes too much time to sort through and find salable items. We sorted for the first few years to only make a slim amount of money. Just not worth the time vs. a dumpster and a quick trash out. Another thing we have done is a room or pile for Salvation Army. They haul away and someone benefits from the donation. That's only when the items are large, clean and in good condition. Doing that still takes extra time compared to quickly emptying the trash into a dumpster. Our carrying charges and possibly missing a sale are way more important.
In the pile in the first pic, I see Dr. Pepper and Ruffles, what are the yellow balled up wrappers? Hamburger wrappers? So curious about that lifestyle...
Yup, crumpled cheeseburger wrappers...
Looks like the yellow ones are McChicken sandwiches. The white ones are definatly double cheese burgers. This thread makes me want to stop eating at mcdonalds. For what this guy spent on garbage he could have paid off the house. Im glad you guys are stepping in to alleviate it.
It has been awhile since I had one, but regular cheeseburgers had yellow wrappers.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
11y
Just to close the loop on this thread...
We bought this property for $65K about six weeks ago, spent $2K on trash out and closed today on the resale to a cash buyer for $100K. Total profit closing costs, fees, commissions, etc.: $24,000.
This is one of those wholesale deals where, had we just turned around and resold it prior to purchasing it, we would have made about $5K. But, by closing on it, cleaning it out and listing it on the MLS, we multiplied our profit 5-fold.
This is a strategy that's worked well for us over the past year or so...
Middletown, NJ · Member since 2011 · 108 posts · 22 votes
11y
Correct me if I'm wrong but that's an annualized return of about 155% for you. With numbers like that how much of your focus is on this strategy? Do you find these types of deals harder to come by than regular retail flips?