All Forum Posts by: Brennen Cook

 I think the solve would be a technically capably agent who can upload in a higher quality that an iPhone 3.. 

But I'm not sure exactly what you mean other than that.  The above bathroom is a before. My after didn't upload.

Either way,  better quality is a must have. 

 http://www.biggerpockets.com/forums/223/topics/200...

I posted last night late 8n the success stories. I would be glad to be added to your buyers. Take a look. I'd love to get in touch and I can explain what I look for. Feel free to email or call.

[email protected] 

916.759.2118

Thanks Mike for the suggestions.

I actually didn't find the contractor.  When I found and used the "experienced flipper" it was his contactor.  Long story.. another lesson ed learned. CYA.. if you aren't constantly watching and analyzing how much better are you than a guess?!

Thanks. I found this one through one of several agents I use when necessary. I am open to working with any and all agents if that's what you're interested in. I am open to deals anyway I can get them, MLS or not, as long as it's a win win.

Keywords: Sacramento, Cameron Park, California, First deal, Flip

Hi BP community!

I thought I would come here to post about what I would consider "my families first flip".

A little over a year ago I began my start here on BP learning and self educating. My family and I were aiming to invest in real estate. After finding an experienced investor, through BP actually, we played hard money lender on a flip to get our feet wet. The second deal, or my first flip as I would call it, went slightly different. After joint venturing the deal we had fire the initial contractor, were more than double my rehab time, and had to scramble to find another contractor to finish. Eventually, the investor and my family parted ways and long story short we were left to sell the house and remaining profit. That is enough backstory... Here is the important part... Pictures and even better numbers!.

I apologize for not having 100% pre-rehab pictures. I believe some of them are a little ways into the rehab. The after picture were taken from the MLS. ....Lesson learned...

This house is in Cameron Park California.

*** These numbers are rounded and rough. I will be posting a detailed breakdown on a spreadsheet ***

Initial Analysis 

ARV: $485,000

Purchase Price: $355,000 ($205k Cash Down, $150k Hard Money Loan@10%)

Rehab Cost & Interest Payments: $44,000

Holding Cost, Closing Costs: $7,000

Real Estate Commission 5%: $25,000 ( I know its $24,250)

Time Frame: 8 Week Rehab (Hoped for 4 to 5 months MAX initial purchase to resale)

Potential Profit: $54,000

Cash on Cash ROI in 4-5 Months

54,000 / 249,000(205k+44k)= 21.6%

Pictures of Before** Heights Before Pictures

Now for the actual numbers. I am going to lump it together to make it easy. I will post detailed spreadsheet later.

Sales Price of $480,000

Purchase $355,000

Rehab&Interest&Holding $72,000 !!!

*Note this is where we went wrong. I learned the lesson of how important it is to have quality people on your team. I had to fire the low budget contractor after he did no work in most the time with ALL the money. Lets now start...

Time Frame A-Z: 9 months!

* I think this is also an issue due to the face we listed a 6 bedroom home originally in November. Due to the contractor circumstance.. Ripple effect =(

In the time towards the end of the flip is when the individual i found and my family parted ways.

After all is said and done ( Close, RE Fees, Repairs, Taxes, Etc)..

Total In $427,000 ish

Total Out $ 450,000 ish

Profit $23,000

Detailed spreadsheet to come. The biggest issue was rehab cost literally doubled and of course time.

After pictures here - After Pictures

I apologize that the after picture are on Zillow and their quality. Am working on a fix..

A lot of drama. A lot of unforeseen things. A TON of irreplaceable experience and lessons leaned. And most importantly, the CONFIDENCE to go forward! Nothing like in the green on your first one.

I am posting this to share my experiences. BP has taught me a lot and I have learned a lot through other posts. Even more so through others constructive criticism of those posts. With that said I hope this is another learning experience for myself and others. Please bring any and all comments!

I will be updating this post and answering questions. Please feel free.

GAME ON! 

Hey Georgio!

Shout out to Elk Grove, CA. Resident right here myself.

Remember that the 65% rule is just a rule of thumb. A tool used to help us analyze a deal. I find its best to pencil it all out. It helps to understand the many ways investors calculate ROI and the definitions used such as capitalization rate, net operating income, debt service, cash on cash return, etc.

In your question you use very broad numbers. You do not account for rehab costs, 5% real estate commission, holding costs, taxes, insurance, etc. To answer you broadly though, YES ALL DAY! I look at my cash on cash return. I aim for (as high as possible) no less than 20 to 25% on most deals. And that's annualized.

With your numbers, $195k in to profit $105k, your looking at a 53% return on the flip in whatever timeframe. Call it 6 months at most.. if you could do that to fill up the year you'd annualize out at 106%!.. cash on cash return I mean. ( Eacheck deal would only require 195k of your personal cash at a time. You would profit 210k in year, if repeated). Find me a deal like that and I have some money for you!

Keep an eye out. I just did my first flip in Cameron Park, CA and am about to post the in depth numbers and pictures tonight. You can look at the real life dollars spent and the real life profit made.

Welcome to BP! i am actually from Elk Grove also. BP has been a great resource for myself and family enabling us to get our first few propertis within the last year. You will find many like minded people looking to build win win relationships here. Be sure to set your keywords up fir things like Sacramento, etc.

Please, add me to you list of buyers for your wholesaling. Cash and fast close here.

Also you should check out the meet up groups in the area related to RE. There are some very good ones here in Sac. A weekly cashflow game I am fond of. Feel free to contact if need be. 

[email protected]

Again, welcome to BP!

 Nail on the head, in my opinion.  Unless you have a couple million cash or many properties.