All Forum Posts by: Mike Hibbs

@Nik S.

@Bill Hinshaw

Thank you both for the kind words.

@Nik S.June 9th was purchase date - Oct 5th on the market date. (WAY TOO LONG FOR SOW)

We received an offer the day before it hit the market (agent friends brought a buyer), but we couldn't make the numbers work.  In retrospect we should have taken it to lessen the holding costs..My now end net will only be higher due to rent income.  Lesson learned, take a profit.

The home was on the market for 77 days before we received this accepted offer.

The wood grain direction, I agree with you @Bill Hinshaw it wouldn't have been my choice either.  I only refinished the floors, it is our guess originally the living room was carpet and at some point the put a hardwood down there.  Why they didn't lace in boards at that time we are unsure.  The color matches, but the hardwood thickness is not the same throughout.  (lesson learned via a sand through)

Permitting issues arose when the city put a stop work order.  Before staring I  spoke with several other investors in my area, none of which pull permits so I decided to go the same route.  I've learned Huntsville is going through a crackdown of unpermitted flips.  Since this was a flip I had to hire a licensed builder to be my project manager.  This cost me an extra $5,000 originally not in the plan.  This had me shut down for three weeks, because many of the builders didn't want the hassle of such a 'small' job and gave outrageous bids for the SOW. ($15,000+)

@Nik S. Granite color I believe was 'oriental light.'  Look forward to reading about your first flip. Congrats for taking the first step, and hopefully we have many more in 2016!

Dana Whicker I should clarify, as an agent I found homes and got outbid on several homes before getting this home.

Thanks Donald.

Hi BP, I wanted share my first full flip results. After Pics here -- http://www.tourfactory.com/1439937/r_BP Purchased on Auction.com - $147,000 Rehab - $35,000 Holding costs - $~1,500 Contract price - $239,000 Estimated net $40,000 The contract is contingent on buyers selling their home (relocating to area). They will rent home for $1,500/month up to year. They will close 30days after sale of their home, and if they can not close in one year they'll forfeit downpayment of $5,000. I realize this is risk accepting such a low downpayment. Buyers Household income was such, that I felt the reward (extra cash flow) was acceptable. Things I learned-- It took MUCH longer to find my first flip than I anticipated. I was very cautious figuring for worst case. Contractors over promise, and under deliver. I should have fire my first one MUCH sooner than I did. Permits can be important, even in a 'cosmetic' flip. The city permitting dept, is no joke. :) Timelines and budgets are tough to stick to starting out. In the future I will hire even the things I enjoy/can do. I take too long, and too many trips to Lowes...cheaper in long run to hire! Interesting twist-- Today while getting the mail at the 'flip house' I received a 'yellow letter' from another investor attempting to buy it. While he was 6+ months too late, I decided to call him. He is a wholesaler and is signing a contract tomorrow for a project that I am very interested in. Thank you BP community, and I can't wait for the 2016 projects

I do some 'exterior' only appraisals.  It consists of literally taking 4 photos and rating the property.  They only pay $21 per home, but it's easy money if you are already in the area.  I use the windshield time to explore subdivision I'm not familiar with...looking for homes in distress. 

If interested, send me a message with your email and I will 'refer' you to this company.

Hi Gene, I've recently used Neal Bunn construction - (256) 424-5880 and liked him and his crews. I will also be using Rocket City Preservation - J.T. Thorton - (256) 990-8861 Hope this helps. Let me know if you have any other questions. Welcome to pm me. Thanks.

I was referring to the foreclosure deed which I had a copy of before bidding.  Unsure if this information is available everywhere?

@Mark Gee the whole process was surprising smooth and straight forward.

I bid during the pre-auction period, and was contacted by Auction.com via phone almost immediately. I was told the home must be 'advertised' on their site for five days before the bank would accept any offers. (Home was NOT on MLS) I was told my offer was 'slightly' lower the the banks reserve. (Also told I was only bidder at that point) I increased my bid by 2k, waited until the next day (5th day). I was called next day at noon to confirm bank accepting offer.

I do not know if the bank reserve would have changed if it went to auction, knowing the numbers I doubt in my case.  I purchased 40k (22%) under the foreclosure amount.

I no longer hate or are scared of Auction.com listings.

Hope that helps?

Thanks for the advice @J Scott and Bill Hinshaw.

Turns out it seems they are hammering anyone flipping, to ensure the person in charge has a 'Home Builder's License."  You have to have this in order to pull a permit on a home that you will NOT be living in.  

Since the OP I have spoke with a few other flippers in the area, and none of them have this license BUT admittedly haven't got caught.

Currently I am looking for someone with this license to get the permit, get back to work and finished.

Future I will be getting licensed, to skip this middleman step.

Thanks again.

I am underway on my first flip.  This home is a simple paint, floors and kitchen cabinets.  I received a stop work order, and had a inspector walk thru the home.  I am being told that "this amount of work has to be all done by a contract."  Apparently any reno over $250 (labor and materials) I will need to have a general construction permit....Even if this was only painting I'm over $250.

The big sticky point seems to come from the "gutted" kitchen, and installing cabinets.  She is adamant that this MUST be done by a licensed professional.  Also the re-installing toilets (removed for tile demo), and hooking up dishwasher must be done by a licensed plumber/electrician.  

I think my lesson learned is apply for general construction permit with all working cabinets/appliances in the home.

Does anyone have any advice for me on this, as I prepare to meet with her boss this afternoon?  

Thank you all