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First Solo Flip & I'm in Trouble

PopEmersen

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So I have done 6 flips before using a partner. This time I did one solo. I found a home in ATL in a great location, but a horrible driveway.

Here is the listing
http://www.zillow.com/homedetails/1900-Harper-Rd-NW-Atlanta-GA-30318/35916027_zpid/

Here's why I am in trouble. I took at 6 month loan from a Hard Money Lender. The loan is due 7/10, I don't have a buyer, I got turned down for traditional refinancing, and I'm out of capital. I've had showings and everyone says it's beautiful home, but everyone hates the steep driveway.

I've called 5 different concrete guys, 3 ignored me and 2 called me back to say the same thing, nothing can be done. They driveway has to go from the street to the garage floor, and you can't lower the home or raise the street.

I have had several rental inquiries and I am willing to do that, but I couldn't get refinancing. I dropped the price this weekend and we have had increased activity so that's good, but no offers. I had an idea of actually getting a tenant, go through the whole process of signing the lease and getting the deposit, take that to a bank and see what they say.

What do you guys think?
 
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tafy

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Extend the loan?
 

CashFlowDepot

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Contact Dyches Boddiford in Atlanta www.Assets101.com He might do a new private loan or equity participation financing ( put up $ for share in profit)

Do a Highest Bidder Sale this weekend. Advertise the house below market to get a lot of people there, then sell to the highest bidder. Have a mortgage broker at the house to qualify buyers on the spot. I routinely sell houses at, or even above, market using this method. See more details at http://www.cashflowdepot.com/home/highest-bidder-sale.aspx Use LOTS of SIGNS to attract attention. Make it seem like the circus is coming to town with all your signs to help create a BUZZ about the property.
 

D11FYY

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Not sure how American sales work but it surely doesnt help showing how much you paid for the property on that website?
Have you got for sale signs etc outside ? Can you offer any incentive to the buyer?
What about selling the house for cheaper to clear your hands (and bills) but remaining holding a 25% share in the house? Meaning if they sell it you can still Either offer them a 3-5-7-10 buy back period of this percentage? Or charge a cheap yearly figure each year until this share is bought? Or keep hold of it whilst the property prices grow again and maybe make a tidy figure if someone decides to buy you out.
Might not make sense just the first idea that's came to my head.
 
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Unknown

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I wouldn't pay a dollar to live in Atlanta...with that said the auction idea is probably your best shot to sell it fast if you can't get financing.
 

T14

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I see on the zillow listing that you've lowered the price to $320K from $380K. That's a HUGE reduction.

I think you may have overestimated the ARV on this one. Typically when houses aren't selling, especially when they're in nice areas and in good shape, it's a price thing.

My recommendation is to first try the auction method and then keep lower the price as long as you can afford to.
 
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ChickenHawk

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Beautiful house. It looks like you did a great job on the renovations!

Hey, a small thing that might help... The house sits high up on the street, which equals a problem, a steep driveway. However, usually in houses like this, there's also an upside, meaning a kick-a$$ view from the front of the house. Is there a great view from the house? If so, consider adding a few photos of the view, maybe a shot or two from the front entrance, or even from the upper floor.

Personally, I hate houses with a steep driveway, but when there's a kick-a$$ view, I find myself stopping to consider them anyway.

Also, did you try an open house? If you're that desperate, it might be worth doing.
 

ChickenHawk

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Are open houses not typical? I know nothing about real estate so I'm curious.
True, they're fairly common, but lots of sellers and real estate agents view them as a waste of time because very few of them result in an actual sale. But maybe an open house, combined with the recent price reduction, might bring some buyers out of the woodwork.
 
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CashFlowDepot

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That's why a HIghest Bidder Sale is different than a typical Open House. Yes, you still do an open house for 2 days with a short fuse on the times that the house is open. By getting as many people there are the same time it create competition and helps the price go up up up. The big different with a HIghest Biddder Sale is that you advertise the house about 25% below market to attract bidders. People submit their bid on a bid sheet during the open house. After the 2 day open house you call back all the bidders, in highest to lowest order. Tell them the high bid and ask if they want to advance or increase their bid. Some will drop out. Some will increase the bid. Auction fever always kicks in so it is just as much about winning the bid as buying the house.

I usually have 200 people come through the house in a two day open house. I will get 25-30 bids. And I always sell the house. Plus you have a built in back up bidder if the high bidder bombs out.

Put up about 50 signs within a 1 mile radius of the house. Also blanket the neighborhood with flyers ( at houses, 7-11, cleaners, restaurants, etc_

I always get a property inspection done so potential buyers can see exactly what they are getting in to. Then there is no excuse to write a contingent contract subject to an inspection. Often the lender will accept that inspection report so it helps to expedite the loan ( if there is one)

Here's part of an article I write about a Highest Bidder Sale I did in Colorado a few years ago. The house sold for more than market value. Even realtors were stopping by to ask me how I got so many people at my Open house.


500 buyers at your open house in two days


That’s how many buyers showed up at the Highest Bidder Sale I did in Loveland Colorado last month.

I usually attract at least 200 Buyer to each Highest Bidder Sale.

Here are some other advantages of doing a Highest Bidder Sale:

(1) The great thing about a Highest Bidder Sale is it has a built in back up buyer just in case the high bidder backs out.

(2) But think about this…You also build a HUGE buyers list in just 2 days. Many buyers at a Highest Bidder Sale are CASH buyers so you can get your houses sold and CLOSED even faster.

(3) With all those CASH Buyers, you get to meet a lot of potential “private lenders” in just 2 days

(4) And I have never done a Highest Bidder Sale that I did not generate interest from other Sellers who want me to do a Highest Bidder Sale for their house. I usually get at least 1-2 options every time I do Highest Bidder Sale. More deals! More profits!

Bottom line, a Highest Bidder Sale is a great way to get your house sold fast, build a buyers list, find private lenders, and get even more deals all in just TWO days!




To Your Extreme Success

Jackie Lange
 

CashFlowDepot

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INTERNATIONAL BUYERS

International buyers see all real estate in the USA as a blue light special. Make sure you get flyers about your property to the international schools in your area.

Also send out a PRESS RELEASE to local media and also free online PR sources and PRWeb.com The press release helps attract buyers worldwide

Focus on the positive attributes of the property and the house.
 

randomnumber314

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INTERNATIONAL BUYERS

International buyers see all real estate in the USA as a blue light special. Make sure you get flyers about your property to the international schools in your area.

Also send out a PRESS RELEASE to local media and also free online PR sources and PRWeb.com The press release helps attract buyers worldwide

Focus on the positive attributes of the property and the house.

There is so much great info in this forum. Awesome advice CashFlowDepot, rep transferred.
 
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PopEmersen

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We had an open house but it didn't go well due to weather and it was a quick turnaround. I can't do the signs because the City of Atlanta has a strict sign ordinance law with fines BUT I think I can do the flyers.

@CashFlowDepot THANK YOU SO MUCH FOR THE ADVICE!
 

randomnumber314

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We had an open house but it didn't go well due to weather and it was a quick turnaround. I can't do the signs because the City of Atlanta has a strict sign ordinance law with fines BUT I think I can do the flyers.

@CashFlowDepot THANK YOU SO MUCH FOR THE ADVICE!

what are the fines? Think of it as a cost to advertise. $100 a sign, at 50 signs is still cheap.
 

CashFlowDepot

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a Highest Bidder Sale is not your ordinary boring open house. YOu really need to try a Highest Bidder Sale. It is important that you follow the instructions which I emailed to you.

THINK CREATIVELY!

Even though you can't stick signs in the ground,

you can have cars with signs on them strategically places to drive traffic to the house.

You can hire people on craiglist to stand on corners holding signs

There is always a way!
 
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CashFlowDepot

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I was doing a Highest Bidder Sale in Plano Texas. They have a $100 per sign fine but they usually just take them up.

I was getting steady traffic at my HBS, but all the sudden it stopped. I knew Code Enforcement probably took up my signs.

But I always have more signs to put up and did that.

Traffic at the house started up again.

But an hour later, it slowed down.

Sure enough, Code Enforcement took down my signs again.

But I had four big 3 foot x 4 foot signs in front of the house.

I punched a hole in the top right and left corner of each one
then used a zip tie to turn the signs in to two sandwich boards

My daughter and her friend were helping with the HBS.

I sent them out on the sidewalk next to a busy street to walk up and down the street with their sandwich board on.

We kept plenty of traffic, got lots of bidders and sold the house for more than I thought it would sell for.

Moral of the story... have a plan b, a plan c, etc... and come to a HBS prepared for anything.
 

codo3500

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I'm a realtor, but in Australia, so it may be a bit different here.

Here's some VITAL bits it seems like you're not doing (as nobody probably does them there):
- Stage the house. This means renting high-end furniture, including paintings and everything. You need to make it feel like a home - people don't have an imagination, so help them visualise it with gorgeous furniture and decorations.
- Get professional photography - for the sake of $150, once it's furnished, get a professional to come and do it. They'll bring proper lighting and everything, it'll look 100x better than it currently does.
- Do an auction - and leading up to it, do 15 minute open houses, just a couple of them. By cramming everyone through in a short period of time, they'll think competition is through the roof.

This may all cost you a grand or two, but it works every time here. People really don't have an imagination; by doing the place up with great furniture you're letting them walk in and go "Wow, I could afford to live here!?"
 

ZCP

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5 day sale http://www.howtosellyourhomein5days.com/
It works. Did it in the Acworth area. Friend of mine did it twice in Alpharetta.
As a tip, bake (don't burn!) cookies while everyone is going through the house..... It keeps you in the kitchen talking and makes the house smell great....
 

D11FYY

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5 day sale http://www.howtosellyourhomein5days.com/
It works. Did it in the Acworth area. Friend of mine did it twice in Alpharetta.
As a tip, bake (don't burn!) cookies while everyone is going through the house..... It keeps you in the kitchen talking and makes the house smell great....
Lol make bacon then its guaranteed to sell .. Unless their vegetarian .

@CashFlowDepot is giving some great advice as has @codo3500

Have you not had any luck at all? Even a offer?
 

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I am curious what kind of work you put into it . What percentage do you usually make off these? In my area the banks have gotten better at controlling the foreclosure market so the value is not taken down so much, meaning flippers are not left as much room to make profit. For that price range I would expect it to be immaculate and staged. The bathrooms are a turn off. Just trying to help.
 

Unknown

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The bathrooms are a turn off. Just trying to help.

I have to agree. If you make it out from under this house and you decide to do another one put more effort into the bath/kitchen areas.
 

CashFlowDepot

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I am curious what kind of work you put into it . What percentage do you usually make off these? In my area the banks have gotten better at controlling the foreclosure market so the value is not taken down so much, meaning flippers are not left as much room to make profit. For that price range I would expect it to be immaculate and staged. The bathrooms are a turn off. Just trying to help.

You definitely need more CURB APPEAL. Flowers near the street and at the entrance to the property.

Half of the battle is getting them to the property. The other half of the battle is getting potential buyers to WANT to come inside. Flowers Flowers Flowers will draw them inside.
 
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MJ DeMarco

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Is it staged or vacant?
 

CashFlowDepot

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I did a quick search for staging companies in Atlanta. found this one
http://www.thesimplystagedhome.com/

I don't know anything about them

But some furniture in the house would sure help!

Or try this...

For one of my high priced Highest Bidder Sales on a vacant house I had an option on, I went to a nice furniture store in town to ask if they would stage the property. They could advertise the furniture for sale.

I sold the house faster because it was staged
It did not cost me a penny because the furniture company did all the work
The furniture company sold most of the furniture to the home buyers.

try it!

win win for all

You definitely need a lot of flowers at the entrance near the road and at the entrance to the house and on the back patio

Make the house feel like a HOME
 

CommonCents

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what are the comps?

I'd look at taking new pics and having them brighter on a sunny day. Was a little dark inside.
 
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PopEmersen

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Is it staged or vacant?

Vacant, I did staged on a home before and it didn't add value. The home didn't sell faster or for a higher price.

For one of my high priced Highest Bidder Sales on a vacant house I had an option on, I went to a nice furniture store in town to ask if they would stage the property. They could advertise the furniture for sale.

Great idea

I'd look at taking new pics and having them brighter on a sunny day. Was a little dark inside.

Everyone is saying new pics. Need a new realtor seems like.
 

D11FYY

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Vacant, I did staged on a home before and it didn't add value. The home didn't sell faster or for a higher price.



Great idea



Everyone is saying new pics. Need a new realtor seems like.

Just because it didnt work once previous dont write it off just yet give it another go, you dont have anything to loose by trying.
 

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