I said I would post some real estate stories on here and I've failed to do so thus far so here ya go.
I just sold a house on Wednesday which leaves me with 1 of my own that should be closing in about 2 weeks and 1 I'm selling for an investor buddy of mine which should close in about 35 days.
Here's how the one I just sold worked out:
One of the major stumbling blocks for new investors is the marketing piece ( it's tough to flip houses if you can't find any houses to flip!).
I'm not going to go into the various marketing strategies at this point but I will cover the way I found this house which covers 2 marketing methods.
- Driving for Dollars
- This entails keeping your eye out as you drive around for run down houses. When you find one, you contact the owner to see if they would like to sell.
- Obituaries
- I realize this is going to make me sound like a monster but hear me out. This method involves keeping an eye on the obituaries page in the local paper. You find out if the deceased owned any property and then find out who their kids were and contact them offering to buy the house. To the kids, it's like found money. They generally don't care about getting the highest price, they care about converting that house into cash and FAST! This allows you to possibly get a good deal, especially if the house needs work. Now, I don't call the kids and say "sorry your dad died, do you want to sell his house". I'm a bit more tactful than that. What I do is send out one of my "I buy houses" postcard to the deceased house along with the kids houses. It appears to them as they just got a piece of mail that got blasted out to thousands of people. This makes you look less like a vulture.
Ok, so those were the two sources that led me to this awesome pink (my ex's are now saying "What is up with Luke and pink!?" house:



The positive side to this deal was that the lady that died was elderly so a local non-profit group had come in 2 years earlier and installed a new roof, new windows, a slightly used furnace and updated the plumbing.
So the "guts" of the house were good and this is generally where the most expense comes in.
So I negotiated to buy it for $32,000. That's right my California friends, less than price of your car!
I then proceeded to fix it, well hire people to fix it that is.
I went way over budget. I think I anticipated about $15K and I spent about $25K.
So when it was done, I was into it for about $60K.
Here's what it looked like when I was done:



So I put a for sale sign up and made a website for the house which you can see
www.613LansingSt.com I sold this house in about 2 days for $95K. That's right my California friends, less than price of your car!
It took a while longer to close than anticipated because the buyer need her parents to co-sign but she wanted to try to get approved herself first so that wasted a lot of time. Plus my mortgage broker was taking to many vacations!
So that ones history...well until April when Uncle Sam comes for his money!
So there's one of my flip stories.
I'll post the next one up when it closes here in a couple weeks.
Later,
Luke