All Forum Posts by: Ronald Ty
Ronald Ty has started 5 posts and replied 68 times.
Post: flip rehabs/returns - how do i compete?
- Posts 68
- Votes 30
Yeah, even sheriff sales are crazy high
Post: flip rehabs/returns - how do i compete?
- Posts 68
- Votes 30
It's no one's fault but my own I went 25k over budget. That being said, a flipper increases the value by redesigning.
Open concept, a 2nd faucet in the master suite, widen and deepen a master shower & would you want a washer/dryer in your kitchen? Ac is on its last leg so replace it with a new one. Put in a 6 foot wood fence.
No more galvanized water pipes and cast iron drains.
at this point, just trying to get a 5% return. Without all this, I'd probably lose my a$$.
and sorry but a 450k priced home needs special amenities.
Post: flip rehabs/returns - how do i compete?
- Posts 68
- Votes 30
Here are some of my flip returns. For comparative sake, I just took out the interest to make it easier (ie, I used a heloc on some but then you pay more in taxes on the flip profit): 19%, -9, 5, 6, 9, 17, 19 (rental sold as is $300 rehab...yes, $300), 32% (rental with a 68k rehab).
Post: flip rehabs/returns - how do i compete?
- Posts 68
- Votes 30
Quote from @Gary L Wallman:
Quote from @Ronald Ty:
Quote from @Gary L Wallman:
Quote from @Ronald Ty:
Quote from @Gary L Wallman:
Quote from @Ronald Ty:
i am having trouble competing with other flippers. i try to do things the right way (pull permits) & use contractors/hvac/plumbing/electricians who, i feel, give me the best bang for the buck. and we all know the cost of things, and labor, have risen dramatically lately.
i pay cash for my homes and hit the sales price i anticipated beforehand.
the problem i am having is getting my rehab numbers in line. i feel other investors are doing rentals or doing some/all the work themselves and/or not pulling permits.
i should also mention, i do not need to flip. i can live off the returns i get in my bond/stock portfolio (w/ a lot less taxes paid). however, i like to flip 1x/year to keep me from getting bored and get that satisfaction from "working" (i retired 4 years ago).
and no, i am not interested in doing rentals. :)
Scott,
These from the ground up flips, particularly with structural changes, are what nightmares are made of. Especially true if your using contractors who likes to charge the way yours do. I have done many higher end finishes in flips and your numbers shock me. Not to say your wrong, inflation in building materials has been crazy.
After doing dozens of flips, I now avoid any of these rebuild from the ground up stuff. If I can't make it appealing by kitchen, bath, paint, flooring and some fancy lighting, I don't do it. Too expensive and way too risky for the dollars expended, to the return.
I've also learned most buyers look at fit and finish more than the houses bones.
Gary
Not disagreeing with your idea that it takes money to make money. Just disagreeing with your rate of return, which, I believe you were concerned about in your post. I've learned, after being in the flip business and the car business, I can't compete with the car manufacturer or the Real Estate developer. If I have to rebuild a car or a house, it's usually a loser for me. Real money is made by making an ugly house look pretty, not leveling garage floors. IMHO.
Respectfully,
Gary
Scott,
I never use borrowed money. I'm in the Midwest so returns aren't spectacular. I used to shoot for between 25 and 40 percent cash on cash return in 3 to 4 months. The amount of work it took made me into a buy and hold guy.
Now own 150+ LTR doors.
Gary
Post: flip rehabs/returns - how do i compete?
- Posts 68
- Votes 30
Quote from @Gary L Wallman:
Quote from @Ronald Ty:
Quote from @Gary L Wallman:
Quote from @Ronald Ty:
i am having trouble competing with other flippers. i try to do things the right way (pull permits) & use contractors/hvac/plumbing/electricians who, i feel, give me the best bang for the buck. and we all know the cost of things, and labor, have risen dramatically lately.
i pay cash for my homes and hit the sales price i anticipated beforehand.
the problem i am having is getting my rehab numbers in line. i feel other investors are doing rentals or doing some/all the work themselves and/or not pulling permits.
i should also mention, i do not need to flip. i can live off the returns i get in my bond/stock portfolio (w/ a lot less taxes paid). however, i like to flip 1x/year to keep me from getting bored and get that satisfaction from "working" (i retired 4 years ago).
and no, i am not interested in doing rentals. :)
Scott,
These from the ground up flips, particularly with structural changes, are what nightmares are made of. Especially true if your using contractors who likes to charge the way yours do. I have done many higher end finishes in flips and your numbers shock me. Not to say your wrong, inflation in building materials has been crazy.
After doing dozens of flips, I now avoid any of these rebuild from the ground up stuff. If I can't make it appealing by kitchen, bath, paint, flooring and some fancy lighting, I don't do it. Too expensive and way too risky for the dollars expended, to the return.
I've also learned most buyers look at fit and finish more than the houses bones.
Gary
Not disagreeing with your idea that it takes money to make money. Just disagreeing with your rate of return, which, I believe you were concerned about in your post. I've learned, after being in the flip business and the car business, I can't compete with the car manufacturer or the Real Estate developer. If I have to rebuild a car or a house, it's usually a loser for me. Real money is made by making an ugly house look pretty, not leveling garage floors. IMHO.
Respectfully,
Gary
Post: flip rehabs/returns - how do i compete?
- Posts 68
- Votes 30
Quote from @Gary L Wallman:
Quote from @Ronald Ty:
i am having trouble competing with other flippers. i try to do things the right way (pull permits) & use contractors/hvac/plumbing/electricians who, i feel, give me the best bang for the buck. and we all know the cost of things, and labor, have risen dramatically lately.
i pay cash for my homes and hit the sales price i anticipated beforehand.
the problem i am having is getting my rehab numbers in line. i feel other investors are doing rentals or doing some/all the work themselves and/or not pulling permits.
i should also mention, i do not need to flip. i can live off the returns i get in my bond/stock portfolio (w/ a lot less taxes paid). however, i like to flip 1x/year to keep me from getting bored and get that satisfaction from "working" (i retired 4 years ago).
and no, i am not interested in doing rentals. :)
Scott,
These from the ground up flips, particularly with structural changes, are what nightmares are made of. Especially true if your using contractors who likes to charge the way yours do. I have done many higher end finishes in flips and your numbers shock me. Not to say your wrong, inflation in building materials has been crazy.
After doing dozens of flips, I now avoid any of these rebuild from the ground up stuff. If I can't make it appealing by kitchen, bath, paint, flooring and some fancy lighting, I don't do it. Too expensive and way too risky for the dollars expended, to the return.
I've also learned most buyers look at fit and finish more than the houses bones.
Gary
Post: flip rehabs/returns - how do i compete?
- Posts 68
- Votes 30
Quote from @Matthew Paul:
A good friend flips houses , he does the bare minimum to make the house move in condition . He sells in B areas . He uses builder grade , makes the house affordable and does it fast . His belief is let the new owner customize to their taste . His houses sell based on location , and they sell quick . He sells FSBO and makes a great return .
Post: flip rehabs/returns - how do i compete?
- Posts 68
- Votes 30
Quote from @Cindy Bowman:
https://www.charlottestories.c...
Interesting article about RE Investors in the Charlotte market. All the deals I have looked at are priced way too high to make a profit. Don't know who is buying them. Also as a real estate agent, I can say in NC pulling permits is a MUST. You would be setting yourself up for all types of problems without them.
You'd be surprised how many investors don't pull permits and some of the work they do. I HATE the government. It's so stupid. The building depth failed me cuz I didn't have their stamps on my scope of work. It was done I just didn't print out a copy as too much paperwork and their nuisance nonsense. I pointed out to then the permit is in the window and I have the receipt for the $1000 I paid you people. "Nope, can't inspect today. Sorry."
Post: flip rehabs/returns - how do i compete?
- Posts 68
- Votes 30
How do you know this? You don't even know the zip code. This is in cook county where property taxes are insane. People are leaving this state in droves. Wish I could but my wife wants to stay.
Post: flip rehabs/returns - how do i compete?
- Posts 68
- Votes 30
The typical appreciation is 2-3% over the past 100 years. That's not appealing to me. I sold 2 of my rentals and will sell 1 more this year. Then, I'm out.
I can live off of my mutual funds. I do this for fun and to keep from getting bored. This flip is only about 3% of my net worth excluding my primary residence.