Shingle Springs, CA · Member since 2017 · 24 posts · 119 votes
Hello investing friends! My very first "flip" went live on MLS today. What a great learning experience and it was definitely very different than what I've seen on HGTV. :) Nonetheless I LOVED the process.
Before/after pics attached. It was A LOT of work but the home cleaned up real nice. Now I'm hopeful for a quick sale!
A shout out to Brandon Turner for his book on REI that inspired me to understand the seller's motivations and concerns and then put together a creative offer to address them. That piece of advice helped me to land this deal despite several higher cash offers that were submitted.
Here are some pics along w/my before & after collage.
Love your "not like HGTV" comment and I am SURE you have learned a lot!
Finger's crossed... How long are you willing to hold out for your price? I did some quick checking here...
Asking price: $395,000
Redfin $400,229
Zillow $387,340
Trulia $405,997
Average of those 3: $396,112
Realtor still shows old est. value of $189,500
Realtor Median days on market for Placerville 58 (April), 69 (March), 95 (February)
SO here is the BIG question...
Knowing what you know now...Would you NOW rather do 10 more like this and make $70k (assuming sells fast) OR wholesale to someone else to fix up and flip way back when you bought it and make $35k?
We do the latter by wholesaling to a pro-flipper that is not as good at finding deals. We are incredible at finding undervalued property and they have an established contractor/team. Great fit!
This way we can do many properties at a time WHICH results in MORE PROFIT each year and no waiting for contractors, losing sleep, etc.
TIP: You CAN get properties in the MLS without needing a traditional agent or paying a commission. One of the ones we use is Congress Realty. Flat rate of $299. We post our land and houses with them for more exposure. Zero commissions on the buy or sell side.
Portsmouth, NH · Member since 2016 · 80 posts · 25 votes
8y
@Craig Drummond This looks so amazing! Congrats on your first flip. I can tell it's going to do well. Thank you for sharing your experience and the color scheme (love it!)
Real Estate Agent · Clinton, MA · Member since 2017 · 35 posts · 35 votes
8y
Fantastic flip! Any chance you could share the breakdown of repairs, for example, how much was spent on kitchen, bathroom etc, if available? Thank you.
Investor, Agent, CPA · West Sacramento, CA · Member since 2009 · 706 posts · 262 votes
8y
That is an awesome rehab job and great profit, especially for a first deal.
How did you go about figuring your ARV and rehab estimate during the buying process, i.e. what was your due diligence process like given that it's your first deal and what gave you certainty that your numbers were accurate? Curious about your thought process
Flipper/Rehabber · Atlanta, Ga. · Member since 2018 · 12 posts · 9 votes
8y
Wow, great job!!! This is awesome and especially for your first go, I am sure this will sale quick. I am impressed and would definitely love to connect.
Architect · Seattle, WA · Member since 2015 · 34 posts · 22 votes
8y
Wow, great idea to provide the seller with movers and storage! It’s great to see a real life example of “find their motivation for selling”.
Good luck with the sale!
Austin, TX · Member since 2017 · 61 posts · 32 votes
8y
Craig Drummond Wow! You got very creative with your offer! You really went above the “All cash, 7 day closing” standard that everyone else is shooting for. The home also turned out beautifully. Happy selling!