Whenever you hit a major milestone in your business, it’s hard to look back where you started and how much you’ve grown along your journey.We already have weekly and monthly renewal meetings and then review every year, but when we reach our 5 year mark Flipping businessI decided to look back on the entire portfolio.
With all my construction experience, and after reading dozens of books and articles on this subject, I didn’t know what I didn’t understand. To date, we learn something new in every home we buy.
With that in mind, I have created a list of lessons learned over the years. system.. Below are 10 of those lessons I think can help others when they are flipping through the house.
10 Tips for Fixes and Flippers from Veterans Playing Home
1. Note the double line
When I read the feedback about the show from one of our homes, the agent just said “I’m not interested”. Double line. At first, I didn’t know what she was talking about. She then noticed that she had a double yellow divider on the road in front of her house.
In our area, neighboring roads have no dividers, residential roads have a single divider, and congested roads have double dividers. This agent’s “double line” comment informed us that her client would never buy a home on a busy road.
In our experience, selling prices can be affected by about 10% when on busy roads. In addition, it dramatically limits your buyer’s pool. For this reason, whenever you buy a home on a busy road, you take into account lower ARVs and longer holds.
2. Profit is being followed up
In the second year of the business, we acquired the property only by follow-up. According to the list, the house failed in the septic tank and needed to repair the plaster. Follow-up revealed that the homeowner replaced the septic tank and repaired the plaster after the property was first listed and the first offer was submitted.
Fortunately for us, the list wasn’t updated and the property prices weren’t adjusted. I got a house by increasing my offer by thousands of dollars.
3. There is no unsightly loose
It no longer allows future buyers to enter the house before it is ready. So far.
There’s always talk about why they need to see it early, and it’s always compelling. The truth is, most of the time, it’s just an agent trying to show their clients that they’re working extra by finding a house they haven’t listed yet. Not only is it a responsibility, but buyers looking for a renovated home do not have a vision of the finished project you do.
None of the early onlookers led to the sale. In fact, we got the buyer to see it early, say “no”, and when it was done we came back and bought the house. People don’t know what they want until you show them to them.
4. Howdy Neighbour
Neighbors, good or bad, can have a big impact on your project. Whenever I buy a house, I introduce myself and give contact information to all my neighbors.
Everyone has heard a lot of horror stories about their neighbors, but they can also help you. I had a neighbor discover the possibility of theft and called the police at 2 am. Nothing was taken because of its neighbor.
I redesigned the original layout to reflect another house on the block when my neighbor showed me a recent remodeling. When I bought the twin house, it was cheaper to do it together, so I asked my neighbors if they were interested in painting the exterior. They said — even if we were ready to pay for them. 🙂
A little friendliness can be very helpful.
Zillow is a great tool for quick searches and is improving day by day, but you can’t always rely on Zestimate. We bought a house for $ 235,000 and Zillow rated it over $ 300,000. After our refurbishment, the house sold for over $ 540,000 in less than a week.
If you pay attention to the surrounding market and catch something before Zillow, you may find the best deal.
6. Inspect this
Like most flippers, I’m not a big fan of inspectors. It’s a crazy, unregulated profession with no accountability. That said, they’re just trying to get paid for what they’re doing (or looks like).
The more items you can put in your report, the better they look like they did a good job. No one would accept a blank test report that the house is perfect. So why do inspectors work harder than they need to do to find the problem?
We like to keep a lot of unfinished and easy-to-fix items so that inspectors can find them. We especially like code violations that homebuyers don’t notice, but they’re pretty easy to fix. Inspectors love code violations. It makes them feel wise. The bathroom lacks caulking and the stove does not have a fall prevention device. It will take a few minutes to complete.
Want to take it one step further? It leaves the inspector with a list of items that have not yet been completed so that the inspector can include them in the report.
7. Pay attention to glossy objects
It is always safer to stick to the original plan. I know you mentioned earlier that you changed the layout of your house after talking to your neighbors. However, 9 out of 10 times do not finish well if they deviate.
If you bought a house and didn’t plan to finish the basement, don’t decide to do it along the way. Changes usually cost more and delay the entire project. You won’t always get that extra premium you think, and cheaper homes sell faster anyway.
8. Always submit
This is where your agents hate you, so you may have to get your license after this. Always submit an offer, no matter how ridiculous the price. I saw a $ 350,000 home last week. I offered $ 135.
A few years ago, we went to see a house listed for $ 499,000. It was outdated, but in decent shape, end buyers could easily get in quickly. It was only on the market for a week, so we argued if it was worth even offering. However, the listed agent insisted. We offered $ 315K and they accepted it.
9. Talk talk
Brandon Turner I always preach to tell people what you are doing, but I take this one step further: make yourself memorable. In the construction sector, I have an advantage in that department, especially because there are few young women who have partnered with their father.
The company name is also clear because the company was branded with the catchy name HouseItLook. We once received a lead on a property that led to a purchase just because someone remembered our name in a previous transaction.
You will be surprised that many people know who knows who has just inherited. You can give them your card (do you have one right?) And if your card sends them to your website (you also have one of them) You might be able to sneak into the top of the line in front of them, right?), A nasty agent sharks start spinning.
10. Seasonal depression
When we first started, we understood that the market was slow during the winter, but we didn’t know how much it was. Most families want to live in a new home by the summer, as school districts are the most important in our area. Spring is usually the most buying activity, coupled with the start of sunny days.
What we didn’t understand was another negative factor in the expansion of winter. Steep driveways look even steeper in winter (people will consider plowing snow or driving snow in the frozen state). The neighbor next door has no leaves on the trees and looks a little closer. Highways that seemed miles apart during the summer suddenly stand out much more.
If you can help it, try putting your home on the market before all of these issues appear. But if you can’t help it, plan longer holds and more price cuts.
This list is just one part of all the “growth opportunities” we have brought over the years. Every day we are learning something new, and our business is better for it. The biggest challenge we face today is not to overlook past experience in order for trading figures to work.
As markets bubble and transactions decrease, it is more important than ever to continue learning from the past so that we can continue to do business in the future.
Is there a wisdom nugget to add?