Posts tagged Flipping
Bullrush Glen Project 38 Update
Aug 4th
This is the property we closed on in the beginning of July in Escondido, CA.
This property is located in a gated community constructed in the 1970′s. Surprisingly, the property did not need many renovations to get it ready for resale.
The exterior of the property will be repainted as well as new plants and bark will be added to bring some color to a colorless property. Part of bringing color to any property is installing a new front door, which is what we did. In the backyard new sod was installed and a new deck was constructed.
Inside new tile, carpet, and paint was needed as well as a light renovation in the kitchen. The kitchen cabinets were painted a dark Ebony color as well as a new sink and granite counter top were installed. The existing fireplace is going to be refaced with new travertine tile and a new Ebony colored wood mantle.
By August 11 this property will be on the market.
Home depot has great deals on queen palms here in San Diego. These guys were $10 each and we mixed them in with some queens that were $25 and a little bigger.
If you have the budget and it is appropriate there palms for @ $100 are HUGE and can really make a statement.
Since this yard is so big I needed to buy more plants so tried not to spend to much on any one plant.
All the cabinets throughout were honey oak.
We sprayed them out with a color coat of lacquer which ended up being a much better finish than the new cabinets we have been buying from home depot and the cost for the whole house (3 bathrooms, 1 bank of linen cabinets) was about a 1/4 of buying new and installing.
You need good painters to do this. Don’t leave it up to your handyman.
The deck was in such bad shape that I decided to demolish the whole thing and rebuild a bigger one in it’s place. This deck is about 450 square feet and sits off the dining room. It really connects the inside and outside together and will be a great place to BBQ and entertain.
Our tile buys getting ready to face the fireplace with travertine tile.
Cheap way to really update the place and almost the first thing you see when you walk in the front door.
I always try to have a few “show” pieces in the house. I always try to put myself in the shoes of the buyer.
When they walk through I want them to think in there head that they can’t wait to show these things off to their friends and family.
To the right here is the sod we installed on the side yard. This was all dirt.
30 Day Property Flipping Challenge half way there
May 14th
OK I am halfway through with a personal challenge of mine. Buy 3 properties by June 1st and since starting this blog post/newsletter it looks like I have my first acceptance 5/14 which we will close and start construction 5/18 and try to put it back on the market within 2 weeks if everything goes according to plan (never does).
All of my hard work over the last couple weeks has really been paying off. I am getting calls each day from Realtors or Wholesalers who understand what I do to present with opportunities because they know if they bring me a deal I not only will buy through them I will sell through them. I have also been helping some agents who are new to working with investors to show them how to find deals that can be flipped in this ultra competitive market.
As a former Commercial Realtor who now focuses on Syndicating partnerships I am using the same marketing techniques that created a successful business for me in that field by tweaking the business model towards building relationships with Agents or people looking to passively invest through our firm and making them my customers instead of buyers and sellers.
I know that the best deals usually come through agents and most times if it is a great deal they call a client who they can represent and I want to be that person. My business model involves buying as a principal through anyone who brings me the deal and selling it through them on the exit.
The skills I learned being a Commercial Realtor has been in large part the key to my success. As an agent who works with investors I was exposed to the business models that worked for buying properties. I don’t believe there is anyone who is better than an agent at finding deals because that’s all you do throughout your career. You are exposed to the best business models and can leverage that knowledge to become very wealthy.You look at deals and you represent buyers and sellers and you see what works and what doesn’t.
As a matter of fact I am using that marketing right now to let Realtors know I am a buyer and am looking for Real Estate.
I am continually being asked about “What is the best way to become an investor in real estate?” and my answer
Phase 1 – save up enough money for 6-12 months living expenses, go out and get your Real Estate license
Phase 2 – Work under a successful Realtor who’s focus is on the niche you are interested in owning one day.
Phase 3 – Work you ass off and find as many investors to find deals for and pay attention to the successful ones.
Phase 4 – Start finding investors that will allow you to put in some or all of your commission on the deals you find and ask to participate as much as possible even if you aren’t getting paid for that portion. This is an investment in yourself and like all good investments you will be rewarded heavily in the future.
Phase 5 – Build relationships with clients and earn there trust. These clients and your friends and family will most likely be your money source for your future deals.
Phase 6Â – Work your but off to learn the business by working for successful investors finding them deals.
Phase 7 – Transition out of the brokerage business to focus full time on your investments if this is what you enjoy doing. This is the phase I am in but you may find out that being an investor is not always fun and may decide that you like being a Realtor instead.
If you work with investors
So if you are a Realtor or wholesaler give me a call if you find a great deal.
Here are a few reason why you may want to consider working together.
•   I need to buy 3 properties by June 1st
•   I make quick decisions and know what I want – Anything in San Diego $300,000 or less that we can re sell for a profit. I also understand 99% of the deals don’t work but I also know I am successfully finding ones that do work through realtors like yourself who know a particular market and a good deal when it hits the market.
•   I value your advice and feedback but I am not going to blame you if the numbers don’t work out the way you thought on the back end. I am a big boy and if I make a decision to buy it is because I believe in the numbers also. It doesn’t mean I don’t make mistakes it means that I have done enough of these deals that I know mistakes happen and its part of the business.
•   I have access to the MLS and the Sentry system. That means you never have to drive me around or do a bunch of homework for me. I am capable of doing it myself, the best use of your time is to find deals we can work on together and then find more.
•   Quick decisions, no financing contingencies, I can close as quick as needed. As an example to make a deal work this week I offered a 4 day escrow and waived my physical inspection upon acceptance.
•   My company has a general contractor’s license so we understand what’s needed and are capable of just about anything.
•   If I buy through you I sell through you
•   I am open to other possibilities but can’t make as quick of decisions if it is something new to me. On the other hand this is a fast changing market and I need to be open to other opportunities.
Statistics on how people are flipping properties in southern california
May 14th
Here is some slides that I was given permission to use from The Norris Group from the presentation that was put on this week.
I thought it was very interesting to see how there clients were successfully buying and flipping deals in Southern California.
30 Day property buying challenge
May 10th
Ok originally I was planning on buying 2 properties in May and recorded this video towards the end of April. In these series of videos I walk you how and what I plan to do to accomplish these buys. I will keep you posted with my progress.
Intro Video 1 – Buying 2 Flips in 30 Days
Video 2 – Relations with Realtors
Change order #1 on Flip #6 in Escondido
Feb 24th
Spent most of the day at the site today looking over some things that needed to be done at the Escondido flip now that some walls were open. Our construction contract here is a cost not to exceed and I could probably force some of this on the Contractor and win in the short term. But when I needed something on my end I would pay for it and then some and mess up the trust.
I do my best to have as strong a contract in my favor as possible and to have paid less than the work that has been done so far (they can always put a lien on the property if I don’ pay them as opposed to me trying to chase them down and sit on an empty building). I also try to have incentives with pay points so a certain amount of work has to be done by certain pay points otherwise they have to wait for the next pay period which is twice a month. This will keep them working longer to get something done they otherwise may wait an additional day to do.
I also make sure to stay fair even though I have a solid contract in most cases. On the other hand it protects me if someone try’s to take advantage of me (mistakes my kindness for weakness) or get’s behind schedule due to their effort.
I Had our first change order today for our Pennsylvania flip. I go over it more on the Penn site what I had to do and why.
The good news is I saved $150 on the roof and $150 on the Granite counters.
http://sites.google.com/a/gabhartinvestments.com/penn-construction/updates/firsthicups
to see the actual post and updated time line and pictures go to the pennsylvania flip site by clicking here
Update for latest San Diego Real Estate Flip
Feb 20th
Time flew today. I spent the first part of the morning finishing up my painting scope. I should be complete with it tomorrow. The rest of the day was spent putting together the contracts for HVAC & Water Filter. I have spent extra time modifying my old contracts from doing the conversion to be more appropriate for flipping homes.
The crew was worked hard today to stay on schedule. As a matter of fact we are 1 day ahead of schedule if you look at the bar chart below (look at the black fill in on the bar chart, each item will turn black when completed and then will roll up into the first bar for a percentage of total completion. The way it is figured out is it takes a task and looks at the percentage of completion of that task and also what percentage of that tasks time frame is of the total project.)
So far we are about 80% done with the rough electrical, windows and interior doors have been installed. Roof is in and the exterior yard is demo’d and has about 50% of th irrigation completed. You can look at the construction phase page on the time line to see what percentage completed we are at any point in the project.
to see the actual post and updated time line and pictures go to the pennsylvania flip site by clicking here
Started construction on flip 6 in escondido
Feb 18th
Allrighty then…. I set up a site to monitor the progress of my most recent flip. I set it up so our investor can take a look at the progress of the project and I had a central place to keep important information.
I originally set it up as a totally private site but have decided to share much of the information. That way everyone can how the project is going in real time. I will do my best to update it frequently.
If you have any comments post them on this board.
click here to check it out. and come back often because I will be posting information daily including schedule updates. We are hoping to be done within about 3 more weeks and on the market within 4. Stay tuned.
Below is a slideshow of todays work (if you can’t see anything let me know because that means it’s not working right)
Below that is the actual schedule I am using to keep the contractor on schedule. I will explain how the (gantt) chart works
Here is the schedule of the project. You can view more of the details on the site.
