It’s days like these that I’m especially grateful for actually getting paid to do something I love. The Painted Lady closed escrow today, for full price at $499,000 to a really nice VA buyer. Some people shy away from VA offers, but this is my second deal sold to a VA buyer and we don’t mind at all accommodating buyers whom have served our great country. This buyer actually found the home from my Craigslist ad and after then searching online he stumbles across Jim’s online coverage and my renovation blog, seeing the great lengths we went to in order to bring the grand old lady back to life. I received a really nice email from his agent stating that the buyer was even more excited about the home after seeing 10 YouTube videos of the whole renovation process and was now a big fan of ours, its great how just plain old doing things right and sharing stuff on our blog pays off.
There was a back-up buyer in place who had initially offered $460k for the house without agent representation. They then returned after finding an agent and wrote up $479k, which after paying the 2.5% would have really only been a 4k stronger offer. The new agent proceeded to tell me that an appraisal wouldn’t use Golden Hill or South Park comps. That weekend JtR launched it in MLS, did his killer web blast and we held the open house, by Monday the next week we had it under contract in just 4 days official market time. The first buyer came back and was willing to pay $499k with no realtor, after seeing that they lost the deal and then waited anxiously in back up position. At this point we’re wondering what happened to the mystery agent who said it wouldn’t appraise. I’ve made a new friend with this other buyer who now wants first dibs on our next project or possibly my remodeling services if they find something that needs a redo. It’s funny how buyers want something even more if they cant have it and its interesting to see how such emotions play into these deals. Thanks to Jim Klinge & the whole team at Klinge Realty and Nancy and Gloria at Fidelity Title for all the professional help. That’s all for now, Merry Christmas to everyone and please let me know if you see any deals that I might like! New project coming soon: )
Good work! Fun to hear about your successes.
Did you net enough profit for the amount of work you put into it? I know you really toiled a long time on that baby.
Thanks guys, yea kyoung we did o.k. with this project. Acting as owner/builder and dealing directly with sub contractors as well as doing a lot of the work myself enables me to keep the budget down. I know a guy who literally spent twice as much as I did by hiring a GC for the same work. I’m surprised that we were able to come right back home after being in Texas for 5 years and nail this big project right under the noses of half the city who are all flipping now. Funny thing is, this house was waiting for me, it had been on the market for a year and I was looking at it online from 3 states away. Even when I got here and saw it I really didn’t want to do it at first. It took a little longer than expected, mostly waiting on City approvals and historic stuff. The hardest part was finding inexpensive sub contractors who do good work. My goal is only 2-3 of these size projects per year, if I can get to that level I’ll be happy. I’m really hoping to stay away from the little cosmetic deals where all the competition is. Plus, when the market turns around and there are no more courthouse pickings and very few reo’s, those guys are dead in the water. I’m trying to also think long term. Thanks for following along!
There is no doubt that all of the time and effort you invested have paid off!
Wow, what awesome taste you have! I am currently getting my Marketing degree at California State Long Beach, but the real estate industry is whispering my name. I would love to experience house-flipping in person to truly see what it entails. Do you ever enlist the help of interns of assistants? I know you are incredibly busy, but I would love any sort of advice you could give me! Love your blog, and thanks for your time!
Thanks Molly, That’s great you are getting a marketing degree, it will come in handy no matter where you end up in business. We haven’t used interns yet but if anything changes I’ll let you know. I always tell everyone that there are tons of free resources online, all you have to do is have the passion and drive to learn it. Don’t quit your day job to become a real estate investor, you can still work 9-5 while you do your first few deals to get started. Jump in and don’t be scared, just surround yourself with a good team of realtors, contractors and lenders. Good luck!
I really enjoy your blog. I toured the painted lady when it first went up for sale with some clients and it was just too much of a project for them. We were really happy to see the results you ended up with. I hope that is going to be a driver for that entire neighborhood.
Best of luck,
Thanks for the comments. I’ve ran into several other people who saw this house before I got it, it was on the market for so long I guess it makes sense. It was a lot of fun once i got past the demo and foundation. In retrospect, I’d do it again in a heartbeat. Glad you liked the outcome and thanks for sending me that lead today. I saw that house a month or so ago, great potential, great area/street/view. Their price is way too high though and I didn’t write a lowball.
Saw your new project over on Bubbleinfo. Oh, boy! A mid-century remodel! Just what I’ve been hoping for! Those ceilings are handsome.
How about a modern bathroom with wall-hung vanity (IKEAs got some), curbless shower, and radiant heated floor!
Congratulations on the Painted Lady and the new baby. Seems you’re having a great year. Looking forward to watching this project unfold.
I’m glad you are excited too Halbert. Sounds like you like this style, hold tight I’ll post some pics so everyone can give me some ideas. Thanks for the congrats on our new baby too, have a Merry Christmas!