All Forum Posts by: Mitchell Robert Classen

@Sam B. @David Zheng @Austin Fruechting Thank y'all. The staging makes a world of difference. I will definitely have all future houses staged!

@Dylan Keyer I spent about $38K in labor. I GC'd the project. I started out doing some of the work myself and quickly realized that doing so would add a tremendous amount of time to the project. 2 weeks into the project, I shifted to hiring subs, making material selections, getting materials on site, and keeping an eye on the budget. Towards the end of the project, I ended up doing some of the punch-out work myself because I wasn't able to find anyone who would do it how I wanted done. On the next rehab, I vowed to myself that I wouldn't put on my tool bag, and I would even consider hiring a GC to handle everything turn-key.

Paul Bowers They call it LVT or luxury vinyl tile/plank, I ended up purchasing it from Home Depot and hired a subcontractor to do the install. It gave the house a slightly modern feel with the gray and was fairly fast to install. http://m.homedepot.com/p/Home-Decorators-Collection-6-in-x-48-in-Antique-Brushed-Oak-Resilient-Luxury-Vinyl-Plank-19-39-sq-ft-case-60019/206268083?MERCH=REC-_-mobileweb_navplp_rr-4-_-NA-_-206268083-_-N

Thank you @Sean Walton. I learned a tremendous amount, many that can't be taught through a book or class. 

Cash

In case anyone was wondering what I've been doing over the past few months...The flip is flipped.

https://www.biggerpockets.com/forums/223/topics/446029-23-years-young-first-flip--36-k-p-r-o-f-i-t

The last time I made a post I had just closed on my first house. I bought it to flip. The rehab took about 5 months. Once it was listed, it was under contract in 2 days with an over-asking price offer. 

Rehab Scope: 

- Exterior siding

- Extensive plumbing work

- Electrical upgrades (power panel)

- Stripped master bath down to studs

- Stripped kitchen down to studs

- Flooring throughout

- Texture/Paint 

- Baseboard/casing

- All new electrical fixtures

- Plumbing fixtures

- Landscaping package

Lessons Learned: 

- Do what you do best, and delegate the rest.

- You will make more money with a cell phone than you will with a hammer

- If you spend all of your time managing the project, you will finish the project and not have another project to work on.

- Flipping houses is a "job", not passive income, hire a GC, focus on deal flow.

Here are some rough numbers:

Purchase Price: $80,000

Rehab: $78,000

Commissions/Closing:$10,000

   Utilities/Taxes: $3,000

              Total: $171,000

Sales Price: $207,000

Profit: $36,000

@Lisa Renee Thank you Lisa! I've been inspired by many people on here as well. The one that sticks out the most is Devan McClish on podcast 180! Good luck on the search, keep me updated!

@Ayodeji Kuponiyi Thank you sir! I'll definitely keep everyone updated.

@Joshua D. Great question, I've thought about this myself as I worked through school. If you want to work for a home-builder, no it's not worth it. If you want to own and grow a successful home building company, yes I would say it is worth it. The degree program I went through is geared towards producing construction managers, estimators, project executives, etc. for large commercial general contracting companies (corporate-atmosphere). I decided that I didn't want to be a "cog in the wheel" on a $120 million dollar construction site, working long hours, and becoming specialized in a particular aspect of the construction project. I'd rather be able to call my own shots, be compensated for my efforts, etc.

Having said that, I graduated with

• A piece of paper that says I graduated
• A huge network of alumni who are all in the same business as I am (architects, GC's, subs, developers, suppliers, etc)
• A technical knowledge of the business (Enough to keep me out of trouble, and to know when to consult an attorney, engineer, architect, or more often than not, a veteran tradesman)

The network I developed is worth ten-fold the cost of the degree. If someone wanted to learn the nuts and bolts of how to build a house and the construction process in general, I'd tell them to go to work for a GOOD custom homebuilder for at least a couple of projects (6-18 months depending on the size of the home).

@Shenice B. The seller was an absentee owner, who had previously rented the home. There were some back taxes owed on the property as well and it ended up being a short sale! It was a cash transaction.

@David Fink Yes sir! The Cats are alive and well! The campus is growing like crazy, have you seen the amount of multi-family construction lately?! I don't foresee myself having to travel far for opportunities any time soon, knock on wood!

@Anthony Geren Thanks Anthony! I'm glad to be here, what an awesome group @Joshua Dorkin and @Brandon Turner have created!!!

@Jeff G. Thank you Jeff! Persistence has paid off, or will pay off in a couple months!

@Cameron Whitehead That's awesome Cameron, I'm still building my team. I've considered getting my license but at this point would rather focus on the next deal. I'll send you a request and we can go from there!

@Colton Cook Thanks Colton, I really appreciate that. At this point for me, it has just been about getting on the board (in a safe and calculated way). What worked best for me was getting out of the office, driving around my town (picked up a map from the Visitor's Center, and marked off streets as I went down them), looking for run-down properties, calling listing agent's on signs, and quite honestly just going out making some noise. For sure, I make it up to Dallas a couple of times a year, I'll definitely give you a shout!

@Michael S. The Kyle area has grown considerably over the past couple of years, Lockhart seems to be slowly following in its footsteps.