Some flippin’ news:
https://www.yahoo.com/tv/flip-flop-star-christina-el-005000416.html
Redfin wins again. We updated the MLS last night about 8pm with the sold information and it is already on Redfin but not updated to Zillow (because it only updates from a feed of my agent’s brokerage computer system which is updated separately by the agent) or Trulia. But Realtor.com has the new sold information also.
Sold for $1,795,000
I negotiated the buyer’s commission down during the counter offers and I paid 3.5% commission for the sale (instead of 5% common commission in this area)
My title, escrow and closing costs were $4,000 ()includes home warranty for buyer)
Total Sale costs = $66,825
You guys can do the math
Need to do tons of paperwork today and I’m going to be waiting on pins and needles for money to get wired into account. I’ll update the detailed negotiation story later today
This morning I put on ‘nice’ clothes (as a temporary millionaire who needs to go into the bank should!) and announced to H… “I am not going to clean anything, I am not going to pick up poop, I am not getting near wet paint and I refuse to haul trash today” He replied … “that will last about 5 minutes and then you will ruin your clothes somehow”
Trying desperately to look like one of those TV flippers today. I may even curl my hair!
Don’t forget to wear your finest designer toolbelt and work boots! 
Congrats.
Wow! Was this much more expensive project worth the full year you spent on it? It’s a tidy profit from my math…but it was a full year!
cb, today you should be a Lady Who Lunches. Get a manicure and your husband and both of you go drink a Manhattan at a fancy place.
Great profit! Congratulations! I loved following the thread from beginning to end.
Yes, I want so much to be a Lady Who Lunches today!! But, don’t have any money in account just yet so I cannot rush out and get that facial and manicure 
The thing to remember, is that on a TV show, this profit would have looked tremendous because they would not have mentioned the $97,000 carrying costs or the $66,825 in closing costs. I cannot do any better in negotiating down my closing costs but I could do a lot better on managing the carrying costs. I think that was my big lesson learned on this project.
It comes out to $100/hour or so for a whole year, that’s pretty good. It’s more than I’ve ever made in a year.
Flip or Flop will mention closing costs, but they don’t really talk about carrying costs. And maybe they have enough cash now that they don’t need to borrow money. Their renovation estimates always seem absurdly low to me. $5K for a gut job on a bathroom, yeah call me a skeptic.
What did you pay your agent - $30K or so? What did her hourly rate come out to? Time to get your RE license!
I know… I am always thinking about real estate license. But I carry so much risk as it is. I am really hesitant to add a whole layer of liability onto the project. I would assume a lot of liability as the agent. Also, if I get my agent license, I still cannot execute a transaction or enter anything into MLS without working under a broker license #.
I think the best approach would be to start listing the houses as ‘For Sale by Owner’ or through one of those flat fee Help U Sell places. All I really need to do is get the listing into the MLS. I am very knowledgeable about all the forms and agreements, terms, etc.
What I have noticed for ‘closing costs’ on the TV shows, such as Flip or Flop, is that they do list commissions / closing costs, but they are very very low. I think they are only listing the commission payoff to the buying agent (because they don’t pay for selling agent because they are the selling agent). They are not including transaction costs or staging costs.
What would this extra liability would be, maybe you can elaborate. DW works with agents all the time who are selling their own properties, it doesn’t seem to affect deal-making at all.
Yes, you have to work for a broker, but that is the easiest barrier to climb over of them all. Literally any broker will let you walk in the door and start working for them once you get your license. It’s all about bodies for them.
And there are lots of companies now that are giving 90% commission splits from the get-go, or better. And you can often negotiate better than that, and negotiate out of some of the other crap like mandatory desk duty and “office fees”, etc.
You’ve got enough experience and done enough deals that you could probably pass the exam right now. The biggest hurdle is freeing up enough time to take the classes, in my state it requires 40 hours of class time.
In CA you can get a broker license directly if you have BA or MA degree(I cannot remember because I have both), You just have to take more ed hours and take a different test, you do not have to be agent first. After the broker license you can get an E&O insurance which is very expensive. I was making BIG transactions before because I was a merger intermediary (not a broker), so my insurance bill was too high that I had to take the wings of a large broker, otherwise, you can operate independently.
Good idea… maybe I can jump straight to getting a broker license. I’ll look into that. I think the flat fee MLS listing might be the best approach. Something for me to research during my down time
Speaking of down time… remember that there was a vacant lot 3 doors down from the project? And they started doing some clearing of the land. Now there is a big construction fence around the lot. I just got a call from an agent who is representing the land owner. He took the listing for the vacant lot. It comes with approved building plans and coastal commission approval. Plans just cleared through the Building Department.
He wanted to know if I wanted to buy the lot off market. I am reviewing the plans right now, just out of curiosity. But it’s an emphatic NO!!! I do not want to go down that route again
Never say never CB! 
Due to my reduced brokerage income in recent years, I actually am thinking get out of the wings of a brokerage firm. Today I called an E&O insurance company and based on potential brokerage income of $50K/year(one person company, no “employees”), the insurance is about $1400/year. However, the local board, supra and MLS charges could be amount to $2000+/year. The E&O insurance I called don’t like flippers, but I am sure you can find others to take flippers.
How much for the lot? How big of a house? Inquiring minds want to know.
Regarding build from ground up, I think what you have done is more less the same. The only thing you have not done is the foundation and you have been fixing it and know whats involved. Once the foundation is up, there is very little difference than the process you have done on the addition.
Congratulations on your profitable flip! The buyer is very lucky to have purchased a house from someone who cares about so many details, seen and unseen.