Winnetka - Another flip in LA Demo Day 5/10/16

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Winnetka - Another flip in LA Demo Day 5/10/16

Anthony Nguyen
Los Angeles, CA · Member since 2016 · 147 posts · 27 votes

Today our company wired on another project in Winnetka, CA.  It is a 3/2/2 about 1350sf that needs alot of work. Last year we did 74 flips in San Diego and LA. This year we are projected to crush it.

I currently have 3 going on right now, and just finished 4.

Scope of work will be as follows, I may miss some things. But we generally do EVERYTHING. Projected rehab time is 15 days. Before photos below. 

-New Roof
-New windows and sliding glass door
-New Exterior doors
-New garage door and motor
-New flooring though out. Laminate in kitchen, laundry, common areas. Carpet in bedrooms. Tile in baths.
-New kitchen cabinets, quartz countertops, fixtures, etc.
-New bathroom vanities, tops, fixtures, toilets, tub, tile walls and floor
-New light and plumbing fixtures throughout
-New electrical outlets and switches
-Paint exterior, interior, knock down texture ceiling
-New front yard sod, new plants and mulch, clean and flatten backyard
-New side fence entry doors
I'm sure I'm missing some items.

Here is what our projects tend to look like after. Ready to rock!

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  • Anthony Nguyen
    OP
    Los Angeles, CA · Member since 2016 · 147 posts · 27 votes
    10y

    This one I will most likely remove the L of the kitchen base and remove the uppers there.  

    Roof is costing us $7,500.00 
    Landscape I'm at $2,500.00 

    Trying to get the rest for about $32k

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  • Matthew Schroeder
    Investor · Carmel, IN · Member since 2014 · 332 posts · 245 votes
    10y
    Great! Please keep us (BP) updated. Will you really be able to turn around the rehab in 15 days? If so, that is fantastic!
    0Reply
  • Anthony Nguyen
    OP
    Los Angeles, CA · Member since 2016 · 147 posts · 27 votes
    10y

    @Matthew Schroeder Right now I typically get it 17-21 days as long as there isn't any underlining issues. The fastest I have done is 14 days. Everything has to go smooth and this one is pretty easy. No major layout changes. 

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  • Daniel Harris
    Investor · Elmhurst, IL · Member since 2016 · 4 posts · 1 vote
    10y

    That is a great ongoing success story!

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  • Tami Russell
    Las Vegas, NV · Member since 2016 · 11 posts · 5 votes
    10y

    @Anthony Nguyen Thank you for the details and the pictures. They look great!  What is the budget for your typical kitchen?

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  • Anthony Nguyen
    OP
    Los Angeles, CA · Member since 2016 · 147 posts · 27 votes
    10y
    Tami Russell Give or take a few but dependent on the size it's under 10k. Most of our houses are under 600k ARV. We have a nice formula going.
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  • Anthony Nguyen
    OP
    Los Angeles, CA · Member since 2016 · 147 posts · 27 votes
    10y

    Today's quick demo and trash haul. Ceilings have been scraped of popcorn. Will spray new texture tomorrow.

    Kitchen has been designed, approved, and ordered. Bathroom vanities included.

    Special laminate flooring ordered. 7 days out.

    Windows being measured tomorrow. 3 days out for product on site.

    Landscape plans walked today with sub. 

    Roof materials ordered. Start Thursday, be done Saturday. Full tear off and re-shingle with some decking and fascia work.

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  • Matt C.
    Investor · San Diego, CA · Member since 2014 · 101 posts · 23 votes
    10y

    14 days is quick. do you guys permit your work?

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  • Brad S.
    Investor · Mission Hills, KS · Member since 2015 · 59 posts · 11 votes
    10y
    Good question Matt C. I got so burned dealing with city and inspectors on a duplex that I had to take a break for a year to recover from it. Getting back in the game again but wondering what do pros do to save time and money on major flips like these when dealing with permits and inspections.
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  • Brad S.
    Investor · Mission Hills, KS · Member since 2015 · 59 posts · 11 votes
    10y
    Btw: Anthony Nguyen thank you for sharing, it's post like yours with all the detail that make spending time scanning for information on this site so worthwhile, great job and keep us updated!
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  • Anthony Nguyen
    OP
    Los Angeles, CA · Member since 2016 · 147 posts · 27 votes
    10y
    Matt C. We do permit. Usually I have inspections scheduled before the work is done and we make sure it's done before the inspection. No layout changes. Quick inspections. Only thing that will prevent finishing on time is unforeseen issues with the house....or inspection times are days out.
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  • Shawn Alajajyan
    Los Angeles, CA · Member since 2015 · 10 posts · 3 votes
    10y
    Anthony Nguyen Nice work Anthony. I am just starting out in the Los Angeles area. What kind of tips would you give to someone just starting out in a competitive market like L.A.?
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  • Anthony Nguyen
    OP
    Los Angeles, CA · Member since 2016 · 147 posts · 27 votes
    10y
    Shawn Alajajyan Honestly. Find someone that you can learn off of. Either by a seasoned investor or take whatever position at a company that does the type of investing you want to start in. If I could do it all over again I would of skipped all the bs and did what I mentioned above. As for the actually investment, it depends on the type. Fix and flip? If yes, what price point? Buy and Hold? If yes, monthly cash flow important? Current cash to be preserved while debt being paid important? Or anticipation for future gains? For flips, what I've learned is speed. Speed, quality, budget is the order i operate. Although lately it has been quality, speed, budget. Quality- Our end product is very very nice for the price point we are at ARV. Which tends to draw in top dollar for the spec and fast, multiple offers. Speed- We don't make as much as some hope to, but we make it up in volume. Words straight from the COO. Budget- I tend to get trigger happy lol
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  • Sundeep Amin
    New to Real Estate · San Diego, CA · Member since 2013 · 49 posts · 6 votes
    10y

    Awesome post @Anthony Nguyen. Thanks for sharing, will definitely check this thread to see your progress.

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  • Dale Shin
    Real Estate Agent · Los Angeles, CA · Member since 2014 · 80 posts · 20 votes
    10y

    Very nice, thanks for sharing!  Is your total budget for this about $42k?

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  • Anthony Nguyen
    OP
    Los Angeles, CA · Member since 2016 · 147 posts · 27 votes
    10y
    Dale Shin Yes, but I have a few thousand more if needed, but found a way to get my roof down to $6700.00 so that helps. Well folks, today we lost half a day. The previous owner popped up today on the crew and was trying to collect their personal belongings, which we partly trashed and partly put out back on the patio. Crew didn't want to continue for insurance reasons. Bummer. Tomorrow we will need 3 extra guys to pick up today's slack. Will have 7-8 guys working tomorrow. Funny how hey had over 2 months of it sitting xl avant to clear their stuff and they decide to come AFTER we close escrow. Second time this has helped to me this year.
    0Reply
  • Anthony Nguyen
    OP
    Los Angeles, CA · Member since 2016 · 147 posts · 27 votes
    10y
    *vacant
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  • Jeff Matsuda
    Los Angeles, CA · Member since 2016 · 18 posts · 0 votes
    10y

    Anthony: 

    Thanks for the great post with photos.  Some questions:  

    Do you design the remodel yourself, or does someone else do it?  

    With so much going on at the same time, do you do any of the rehab yourself? 

    Best, 

    ---Jeff 

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  • Anthony Nguyen
    OP
    Los Angeles, CA · Member since 2016 · 147 posts · 27 votes
    10y
    Jeff Matsuda The layout gets designed with myself, the main CM, the COO and suggestions from our Agent to get the value we need if there are any major changes. Otherwise if it's moving walls and stuff I usually see that right away. It's also a collective decision on the functionality of the home. We always try and look through the eyes of the buyer, primarily the wife's. As of now I am not doing any on my own. I am close to closing on some funds raised to be able to do 2 at a time here in LA.
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  • Jeff Matsuda
    Los Angeles, CA · Member since 2016 · 18 posts · 0 votes
    10y

    I like the idea of looking through the eyes of the buyer.  Also, getting your agent involved is smart since they have a vested interest.  

    If you haven't already seen it, check out LA-based flipper Steve Jones' BP podcast (173).  He talks about going incognito to his own open houses to listen in on what buyers say about his houses.  Great free market research as part of the process!

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  • Anthony Nguyen
    OP
    Los Angeles, CA · Member since 2016 · 147 posts · 27 votes
    10y
    Wow I'm listening to it in tomorrow's rush hour! I might do that on behalf of my boss. Thank you
    0Reply
  • Dale Shin
    Real Estate Agent · Los Angeles, CA · Member since 2014 · 80 posts · 20 votes
    10y

    I listened to the Steve Jones podcast yesterday as well!

    Sounds like you are acting as GC, is that right?

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  • Anthony Nguyen
    OP
    Los Angeles, CA · Member since 2016 · 147 posts · 27 votes
    10y
    Dale Shin in essence correct.
    0Reply
  • Jay Johal
    Internal Medicine Physician · San Diego, CA · Member since 2016 · 44 posts · 25 votes
    10y

    Awesome. Please keep posting more updates and new projects. 

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  • Shawn Alajajyan
    Los Angeles, CA · Member since 2015 · 10 posts · 3 votes
    10y

    @Anthony Nguyen

    Anthony, do you find the deals yourself/company or do you work with wholesalers or MLS?

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