Another flip that got tangled up again today, a guy who came to me from her call rang to consult about ...
Another flip that got tangled up
Again a phone call today, a guy who came to me from her turn rings to consult about Flip who did not succeed.
(Here is a summary of the conversation that lasted for many minutes)
He says he attended a luxury real estate course (never mind names) he has one rental home in Jacksonville and very much wanted to do flips.
It turns out that he learned a lot of material about flips in the course, and many of the students started making deals and he really wanted to start.
He understood some of the things that were learned there that didn't really have to go to the US and that could be done from here ...
In short, he contacted a number of realtors in the area, one of whom convinced him that he knew how to find off-market deals and was working with investors from the US and abroad.
He sent him deals and comps. And he claims that he relied on the mediator who sounded professional to him.
The conclusion was that he would pay something to the mediator at the beginning, that the broker would manage the project with the contractors and of course would sell the house afterwards.
The nice guy just has to bring the money and approve the deal.
In short, 7 months later, the renovation budget increased by almost 40 percent due to additions he did not know about at the beginning and now towards the end it turns out that the price he described as the sale price is not exactly accurate.
According to his understanding he is going to lose 25K in this deal.
It is important to note, we also had a hard time in the beginning, doing a real estate is not a hobby (you can but with some limitations), doing a real estate is a profession, which must be understood, learned, done internship, experimented with and the road is long.
Need to understand: (a very partial list)
How to analyze market
How to find deals below price
How to be precise and understand what the VV is
How to negotiate in Kenya
Teitel and Contracts
How to find professionals or how such devices
What is redevelopment and what it includes
How much should each item cost (how much does a kitchen cost and what its level, ceramics, color, uncle etc. and more and more)
How much labor cost should be for everything.
How long it takes to do anything
What level of finish and what materials are needed to sell at the price you expect.
How do you pay contractors
What a contract to do against them
How to supervise the project and make sure that the contractor is doing a high level of work
How to finish the project (most projects are stopped and stuck in the final stage)
And who goes and how to sell you the property !! Which is critical.
So I can say that it is possible but this hobby sure is not!
Photos from a trip in the Bagely neighborhood of Detroit that ended in January and was sold in the winter. With all our experience and the dozens of projects we have completed. We replaced 3 contractors during the project and if we did not know how to save the money and how to check every screw that the contractor gets from a screw before transferring a dollar, we would lose here.
In the end we went over the 7K renovation (we added another shower in the master suite), luckily we bought good and it sold at the price we asked and everyone received the profit promised them.
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
Excellent post Yoav?
Sagi Traybel
Shaul Mori will read
There is nothing like being present in the field !!
All the more so in the first deal as long as you build a team you can trust
Vadim Lichtik Saar Bam