<p>Ok… Thanks.</p>
<p>Just found this thread. I got back inot the real estate market right at teh downturn when I left an executive postin wiht a nice golden parchute and lots of cash ( which no one else seemed to ahve) I decided to buy and flip while searching for new employment) My ipetus was to make my son’s tution each time… well that did not happen but I made enough…</p>
<p>I just closed yesterday on a house in Mays landing NJ (#5) Going to need to keep going as long as the buyers don’t keep sending prices beyond profitable since my daughter just got accepted to BU Uhhg-gonna make my minimum now 56K per deal instead of 43 when it was my son at W&M</p>
<p>WE HAVE CLOSED!!!</p>
<p>We finally closed yesterday after quite a mess of late documents flying around. January 14 was the original escrow closing date on the contract, but the Buyer really wanted to close last week and move over the weekend. The poor lady had to empty out her home six hours away on Saturday and has all her possessions stored in some moving truck somewhere and has been waiting to move in. </p>
<p>So here are the final numbers on this transaction, not as good as I had hoped. I would rank this as an average transaction, but it took too long so the profit per month is very bad. I have to be really really careful on my next purchase because I cannot keep trudging along barely making any money. Market has really changed in our area so I have decided that I am going to change my strategy on the next buy. I want to target retiring baby boomer ‘down sizers’ who are looking for a special property, single level, room for gardening, move-in ready, etc. and in the $600,000 purchase range.</p>
<p>Total Costs for Project (including business overhead) remain essentially the same = $397,500</p>
<p>Sale Price = $462,000
Seller Credit 5,000
Commission (4.5%) 20,565<br>
Title and Escrow 817
Termite Fumigation 1,000
County Transfer Tax 508
Natural Hazard Disclosure 89</p>
<p>TOTAL NET PROCEEDS $434,021</p>
<p>TOTAL NET PROFIT $ 36,521</p>
<p>See, in the end it just was not that glamorous. I don’t understand why my spreadsheet just doesn’t show those same types of numbers that the Flipping Shows put up on the screen at the end of each show. Although I can guarantee that they don’t include general business overhead. If I did not include that into the equation, the Net Profit would be $42,021.</p>
<p>And, I did not come to terms with the Seller on that property. We were $20k apart in pricing and he would not budge. He has decided to take it off the market and do the renovations himself and try to sell higher. Just for kicks I went through the house again yesterday and in 3 weeks he has only demolished out the kitchen. Hasn’t even removed anything else. At that rate, he should be done in six months :)</p>
<p>Coralbrook, good luck on your next endeavor.</p>
<p>Jssaab, good luck to you too.</p>
<p>Congrats! Those flipper shows often omit real esate commision - very misleading.</p>
<p>Congratulations CB! Your buyer got a great house, thanks to the fabulous job you did.</p>
<p>Great to hear that you’re done. It’s always a good feeling to finish a house. </p>
<p>Lot of (dirty) hard work and risk for no guarantee of a good payoff. Let us know your search goes from here. Do you give yourself a break now or is it into the next project?</p>
<p>“Those flipper shows often omit real esate commision”</p>
<p>Some flipper shows the owner sells the home themselves, therefore the RE commission is omitted. </p>
<p>CB whats there for 20K? In flipping, if you flick the wrong switch, the 20K is gone. Can’t you budget for another 20K in the selling price?</p>
<p>There were no financing charges in Coralbrook’s deal. </p>
<p>Financing charges cut the profits while increasing the returns if the project works.</p>
<p>If I were CB, I would price out the house selling price with all electric, then install large solar panel to accommodate. It should not be more utility charges than gas/electric. That will eliminate all those new vents and new pipes costs. To me the most expensive part of the electric is the winter heating and swimming pool, but San Diego should not have such large heating charges. Don’t know if swimming pool is present.</p>
<p>I really was not comfortable offering any higher on the house because it was in below average condition (not as bad as the bungalow) so I just didn’t know what surprises were under the covers. Also, it is in an area without solid comparable sales so i wasn’t absolutely sure on fixed up value.</p>
<p>I had to pass.</p>
<p>I don’t know whether there is any further interest in this thread. I am definitely working hard right now making offers on properties. I’ll start a new thread with the buying process and see if anyone is interested. </p>
<p>Maybe I won’t promise to be honest, I can put on some high heels, curl my hair, wear nice clothes and try to make it more glamorous!</p>
<p>Its very difficult to sell an All Electric house, not just for utility costs but people are adamant they want gas stoves.</p>
<p>Interestingly, I talked to SDGE and they will install lines to house with new meter for no cost. The issue is I have to pull permits for gas lines from meter through house. I don’t have to go far for furnace and kitchen. But my previous experience with new services from SDGE adds about 3-4 weeks to project waiting for their schedule. And, I just don’t want the City nosing around everything again. </p>
<p>I need to move faster on next project.</p>
<p>^^interesting enough my wife insisted to switch her stove from gas to electric. I had to pull a “0” cable from the panel to put the electric stove top in. Ever since that was done my gas bill during the summer dropped to under $10/mo. Total bill is about the same though.</p>
<p>Coralbrook, I want to see you dressed up as the wife on that HGTV show, “Flip or Flop.” ;)</p>
<p>Seriously, I’d be interested in hearing your thought process about what to buy next, and all about your next project.</p>
<p>Finally got loan approval of my property, after several weeks of struggle. I should be closing next week.</p>
<p>Am looking at and has visited the two vacant properties on Auction.com and it does not look good. One hour from closing and the bids are already too high for me. One 1350 SF house is currently at 160K (168K after commission) next bid is 173K after commission. It is empty and l think its a easy fix at 20K, mostly kitchen cabinet, paint inside and out, carpet/floor etc, the most I can get is about 220K, really not worth my time.
The other one has been ransacked by squatters, lost everything, wire, pipe and air conditioning. Huge holes on the wall, cost of fixing is at least 30~40K and margin right now is just that. I am not going to touch. Besides, it is 50 miles one way from home.</p>
<p>Artlover,
Are your buyers the same buyers as original contract? Or do you have new buyers going through escrow now? Keep us updated as the saga continues. I’m guessing that you spent the money to do the sewer line fix already.</p>
<p>I personally don’t like anything in our area that is on the Auction.com online auctions. They really are the dregs of the dregs down here. Banks can sell too easily on MLS, they don’t need online auctions to sell properties.</p>
<p>yes the same buyer, they refuse to give up and sign the escrow cancellation. So I sent them an extension with $100/day penalty if they do not release loan contingency on certain day and an increase in deposit of 30K, total 40K. They did agree to that and sent in the additional deposit.</p>
<p>I am making $100/day now.</p>
<p>I think on vacant homes, you just compete who can do it cheaper and faster. There is no secrete about it. Only those occupied homes have “soft” problems, such as a feisty prior owner, you can profit from it. </p>
<p>If we follow the costs to do bathroom remodel as the other thread did, basically, all flippers are out of business. 30K for a Bathroom?</p>
<p>Ok, the two houses I am looking at, The 1350 SF one is closed at 175K or 187K after commission, title insurance and escrow fees. There is no margin for me because paint, floor, bath(2) and kitchen together will cost more than 20K and the 2300 sf house next door sold for 230K not long ago.</p>
<p>The other house of 960 sf is totally ransacked, but they are bidding as if it can be flipped right away at 132K plus. In auction.com bidding increments started with 10K and at near the end it dropped to $250 then you know it is about to finish. This house right now is at that stage 250$ increment. But the guys are bidding as if it is a gem, totally ignore it requires everything including the electric panel.</p>
<p>I cannot add now, but who can provide a clue about fixing up cost for a 2bed/1ba 960sf 1 level home that requires everything inside(from studs out) and air/heating? Exterior and roof is fine.</p>