All Forum Posts by: Emily Haase
Emily Haase has started 4 posts and replied 7 times.
Post: Should I follow comps or higher $/sqft for flip design?
- Posts 9
- Votes 3
Quote from @Andy Sabisch:
Comps and ARVs in many cases are SWAGs (scientific wild A&* guess). The flow of a property, the exterior appeal of a property, what is next door or across the street to a property and yes, the finishes all factor into a comp. Many of those that we have worked with over the years have reiterated the old saying "Something is only worth what someone is willing to pay you for it" and it holds true for real estate in spades. I have seen properties that are done with high end finishes in top notch areas sit on the market for months taking price drop after price drop yet another property not too dissimilar sells almost immediately. You only need one buyer but you need to find that one buyer. As the market cools and interest rates stay elevated, buyers are starting to be more selective.
When we are flipping a property, we want to turn our funds. If we invest in higher end finishes yet then have to hold it for say 3-4 months after we list it, the carrying costs and funds tied up are a negative to the business.
I would lean towards what the veterans are telling you and provide quality finishes, sell and move on to the next. As you get more experience and become a veteran, you can determine if your proposed approach is one worth trying.
Thank you so much for this input. You're right. I thought I found a heck of a deal and my realtor said its ARV is much lower than the comps because of the tiny nature of the bedrooms. One thing can throw it all off balance. I'll stick to the basics for now!
Post: Should I follow comps or higher $/sqft for flip design?
- Posts 9
- Votes 3
Usually, and I've been taught by my mentors, to base my finishes on the available comps (sold in last 6 months), some of which are super poorly designed and not selling for the higher ARV I want. I can't shake the idea that I could get top dollar if I design my flips based on the *finishes* of the homes sold in the neighborhood with way higher price per square foot, regardless of comp design.
For example: I have a 3/2 with 4-5 comps rehabbed with minimal effort sold for an average of $210/sqft. But just down the street a 4/2 sold for $300/sq ft (similar overall square footage, nowhere near year built 🫣). The glaring difference? Beautiful finishes and thoughtful design.
My gut tells me to try it, the veterans say I’ll spend too much on rehab for minimal gain.
In my last example, if I pull off a $300/sqft on my ARV, my profit quadruples. I'm too new to be brave and try without hearing from you guys first - investors, rehabbers, realtors and contractors to comment!
I’m new at this and can tell that these renovations don’t sell for top dollar, but flippers insist on gray floors with gray walls.
Why?
I love the process of renewing a house for someone to live in and love, and on the business end I like the non-committal aspect of a flip. Once it’s done I can wash my hands of the thing and walk away with the profit. From a tax standpoint, I’ve seen there are lots of creative and legal ways to reduce the impact of capital gains taxes - with the right CPA!
Thanks for the input! I’ll definitely take it into consideration 🙌
I'm new in the fix and flip game. I have learned a LOT, but as the saying goes: The more you learn, the more you realize you don't know anything at all. I'd love to find out if anyone has a mentor who would be willing to help me with my first flips. Gotta get over the hump and get my first deal under contract, but I desperately need a sounding board. I'm looking for someone with experience, who doesn't mind taking random calls and answering sometimes obvious questions. Let me know who helped you, why they're so great, and let me know how I can get in touch with them. Thanks guys!!! Looking forward to hearing from you.
Post: Looking For an Investor Friendly Agent in Minnesota
- Posts 9
- Votes 3
Quote from @Suzanne Griffiths:
Hi @Brad Cornell I am an agent in the Twin Cities that works with investors. I am an investor as well.
Maybe take this comment down since she's in prison now for investor fraud.
https://www.justice.gov/usao-mn/pr/twin-cities-house-flipper...
Post: Do contractors hate all flippers?
- Posts 9
- Votes 3
I ran across a YouTube video that surprised me. I’m one of those starry eyed beginners hoping to make a name for myself in real estate fix and flips.
It was the comments that made me turn my head! Contractor after contractor throwing flippers under the bus, lumping them together and generalizing.
Do I have to be a J.A. cheap skate underpaying my team and selling second rate craftsmanship to make a profit? Or are there contractors out there with fair prices that love working with flippers??