All Forum Posts by: Michael Leung

I should claifiy...yes those conditions have to be met before a final plat is issued. I thought he wrote tentive plat.  After receiving the final plat you have to pull the permits, public report, CC&R's, and get bid for the underground and site construction

Are you closing the land deal contingent that the developer delivers approved site construction documents? Assuming that you are, do you have electric, water and gas service construction documents and will serve letters? How about CAGRD assured water supply agreements?  Game and Fish approval? Soils test? Archaeology? Any 404 issues?

Theres a million other things before you are shovel ready.  

In Arizona...Trustee auctions there is never a open house and almost half are occupied.

You seem to missing a few things on your estimate.  Your fixed costs is way too low.  With a sale price of $130k...your sales commission is going to be $7800.  Im going to guess that at $130k that its a lower end house...so you need to figure 3% buyers assistance.  Also you have around $1100 in closing costs.   So fixed costs are going to be closer to $12,800

Dont forget with most Hubzu auctions have a 4.5% auction fee

 No Caliche is like bedrock.  Its the native ground and under the top layer of soil

This a pretty common negotiation tactic, to use the inspection reports to get a better price.  

If it was me, I would say no to most of the repairs, but yes to some the minor stuff and any legitimate repairs that would show up on different inspectors report.  Its a risk that they might walk, but considering that you had it sold in a week, its low risk.

There is no substitute for driving the house and accessing the rehab costs.  Unfortunately pricing is based on experience and knowledge.  If you have neither, go find it with someone who does.  Using sqft estimates is a sure fire way to lose money. 

So my partners are into your third year of flipping houses. We did 12 homes last year and have done very well for ourselfs in a very competitive market, Tucson AZ. We focus almost entirely on buying at trustee sales, rehabbing the house and flipping them. So last month...right before Christmas, there was house going to auction that openned at $21k. I check the previous MLS listings and go drive the house. I discover that the house was completely updated and sold the year before by a flipping competitor. The house was is great shape and I comped it at $165k.

So the day the house is going to auction, Im feeling lazy and was looking for any excuse not to go.  I figured with the low opening price, that everyone will be there and a bidding war was going to ensue. 

I when I showed up at the auction, I was surprised to see that it was only me and the auctioneer there.  I was shocked when the auctioneered told me that the house was released by the trustee for sale.  I was completely flabbergasted that there was no reserve by the trustee and that I brought the house for $1 over opening....$21,001. 

A month later, with just cleanup and a little paint...we sold the house for $145k cash.