Hakrjak Finishes His Most Recent Flip....

[hakrjak]

Phew, that went smoothly for once
:fastlane:

Check out the pictures & details on my sale site here:

http://www.coflipper.com

Now to the selling it part, which is easier said than done in this market Although there is a comp that just happened down the street for $129k.... And the flippers 2 doors down have theirs listed at $115k (Not nearly as nice as mine of course) -- So we shall see.......

Cheers,

- Hakrjak

 

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[Bilgefisher]

The places look great. Nice work...got any before pictures?

 

[eTyler19]

Phew, that went smoothly for once
:fastlane:

Check out the pictures & details on my sale site here:

http://www.coflipper.com

Now to the selling it part, which is easier said than done in this market Although there is a comp that just happened down the street for $129k.... And the flippers 2 doors down have theirs listed at $115k (Not nearly as nice as mine of course) -- So we shall see.......

Cheers,

- Hakrjak

Nice job! :smx9: Do you do most of the work yourself? Where do you get the funds for the updates and repairs, the equity after you get the house on a deal?

 

[hakrjak]

The before / in progress pics are all on my REI blog at:

http://www.coloradospringsrei.com

It was pretty much a dump Sub-rental grade when I started on it.

Cheers,

- Hakrjak

 

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[hakrjak]

Nice job! :smx9: Do you do most of the work yourself? Where do you get the funds for the updates and repairs, the equity after you get the house on a deal?

Nah, I hire a lumper to do 90% of the physical labor. I teach him any skills he needs to learn, and he implements my ideas at about $10/hr.

As for funding a flip -- If you can't pull $10 or $15k out of your butt, then you shouldn't be flipping in the first place

In my case I always charge it, so I get the reward points -- and after 2 flips, I have enough points to buy a trip to Cancun or a $300 gift card to Best Buy to reward myself for my efforts.

- Hakrjak :thankyousign:

 

[mtnman]

Congrats!!!

 

[tchandy]

Excellent post! I was wondering if Flips were still going on these days.

Tom

 

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[skeebadeek]

Nice work! Have you given any consideration to staining the fence in the rear? Fences are huge focal points for back yards. This one is elevated which seems to make it stand out even more.

It's really easy to do with wooden fences and yours looks to be in decent condition. You can scrub the fence with a mild detergent, baking soda or bleach dilluted with water; and metal scrub brush.


After it dries you can paint or stain it and it will look brand new. I prefer stain myself although painting is easier.

 

[hakrjak]

Yep, I have thought of that. We might stain it this weekend. Only $80 bucks for 5 gallons of nice transparent red stain, and a nice stain brush. Would take me about 3-4 hours if I wanted to do it myself. I've probably got nothing better to do on Sunday! haha

- Hakrjak :3some:

 

[hakrjak]

Excellent post! I was wondering if Flips were still going on these days.

Tom

Flips will continue regardless of market conditions. People who depended on hot markets to make money flipping were people who didn't have sound enough rehab/remodel skills to truly add value to a property. I hated watched these people fall a$$ backwards into money over the past 5 years... They could have bought a ham sandwich in some of these markets and resold it a week later to make $10k...

If you produce quality work -- You can sell it at a profit in any market.

- Hakrjak

 

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[hakrjak]

Had lots of showings but no written offers yet. I dropped the price to $119.9k from $124.9k this week to see if I can get a quick sale. Last time I sold one of these and listed it for that, I had multiple offers in a week and the price was back to $125k anyway

Cheers,

- Hakrjak

 

[Adam K]

Hey Hakrjak,

I went and put the before and after pics right next to eachother. Its like night and day difference between the two it looks great.

Adam

 

[rugreedy]

Good luck to you!

 

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[lightning]

Nice work Hakrjak!!! Place looks/sounds beautiful!

As I am trying to get started in the buz, I appreciate you taking the time to show us what you are doing.

 

[hakrjak]

Under Contract!

Wh00t wh00t... 20 days until pay day, and then let's do it all over again 1 more time!!!

- Hakrjak

 

[TaxGuy]

congrats!!! can't believe houses in CO Springs are going for $119k

my "castle" in the Chicago Burbs that is about 1600sq ft, but sits on 1/2 acre of land(which means big backyard) is worth $337k which in that area would probably only be about $150-180k

i think the best part is the teaching the skills and getting the labor done for $10/hr since your time is worth much more and I'm sure whoever you have do the work is very appreciative of the income

 

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[hakrjak]

Welp, the appraisal came back late so the closing was pushed back a week -- and now I'm being told that the appraisal came in LOW (And not just a little bit -- $20k low, which is my profit) because it's FHA and they are being super cautious, so my realtor spent a day arguing with the appraisor, and we have our fingers crossed that he accepted the comps my realtor brought. If not we can ask for another appraisor, but until then -- I'm going to be sweating bullets and having nightmares.

I've already started on the next flip, so I'm carrying 2 extra mortgages right now (In addition to my personal residence), and am going to be carrying all the debt for the flips in the meantime.

Should make Hakrjak a not so dull & laid back boy for awhile

- Hakrjak:bgh:

 

[MJ DeMarco]

Thanks for keeping us updated ... I love to hear about people doing things. Let us know if you get the appraisal. (Speed+++)

 

[Mrs. BRKb]

Eek, Harkrjak!

Keep us posted.

 

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[andviv]

What if you bring a renter to minimize the bleeding? would that help?

 

[hakrjak]

What if you bring a renter to minimize the bleeding? would that help?

I'm not in danger of going broke -- I'm just pissed that the "Gubment" is trying to help people to the point where they are hurting honest sellers like me. They are trying to block this deal from happening, and in turn they are blocking my next deal (Which I've already got a construction crew working on right now -- costing me money every day)...

Last year I sold the identical house, not as nicely done for $125k -- And now the appraiser from FHA has the NERVE to tell me that my house is only worth $100k!? That is absolutely ridiculous.

Renters are a last option for me once I've flipped, because I've got $12k of my money into the house at this point, and it would take a few years to recoup that if I use the property as a rental. Also the renters I usually get in this part of town will return the place to me absolutely destroyed in 1 or 2 yrs time, so it's not like I'll be getting something back after renting that I can turn around and sell pretty easy. You're talking about sinking in another $10k at that point to return it to new condition.

- Hakrjak

 

[hakrjak]

Realtor called me this morning and told me that the appraisor is no longer returning his phone calls, so FHA has assigned another appraisor now to our case, and we have to keep our fingers crossed that he will appraise it higher.

Given my experience in the past -- I've rarely had 2 appraisors come up with numbers that were much different, so needless to say -- I am sweating bullets. Not good at all...

Anybody out there have any tips for dealing with these people?

There has not been a similar house sold in the neighborhood in over 6 months, so there are no neighborhood comps that are even useable...

- Hakrjak

 

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[SteveO]

Appraisers have fallen onto the same bandwagon as the lenders. They have pulled back and become conservative at the wrong time.

Your agent should be able to guide the appraiser to a point.

 

[AroundTheWorld]

Interesting development.

I haven't had a SFR appraised in a year or two, but back when we were in that game, it was so apparent (atleast in our area) that appraisals are total shams.

They always got ahold of the buy sell and somehow, the appraisal always came in at $500over the settled upon price in the purchase agreement.

Maybe your realtor can supply this appraiser w/ some better comps.
Has this spooked the buyers at all?

 

[phlgirl]

Hey Hakrjak -

It is going to be tough, if the comps are not there. Unfortunately, this is something you want to check before the purchase, particularly if you know upfront of your intention to sell.

However, what's done is done (we are guiltly of the same mistake).

We always go out to meet the appraiser at the property. Walk him/her through the house and explain, in detail, the repairs you have made. Talk dollars and let them know how much you spent on improvements - offer to prepare a cost report for them. Also, explain your business model and that you have been investing in real estate for a long time. Mention that the appraiser can feel comfortable being agressive with comps, because you are good for the payment. Appraisers are concerned that, if they overstate, and you get behind on the loan, they will be removed from the bank's list of reputable appraisers. Assure them, as much as possible, that this will not be the case.

If you can find any comps - even outdated or just outside of the area (find out how far the appraiser is able to go), I would bring them with you.

Try not to be pushy. You want them to feel like you understand their position and are trying to make their life easier. Talk about the industry and how things have changed. Talk about the neighborhood and make it clear that you are knowledgeable and this isn't your first party.

Sometimes this works, sometimes not. It really depends on the character of the appraiser.

Appraisals are certainly getting tough. I feel your pain.

Good luck!!

 

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[hakrjak]

Hey Hakrjak -

It is going to be tough, if the comps are not there. Unfortunately, this is something you want to check before the purchase, particularly if you know upfront of your intention to sell.

The purchase was made 3 yrs ago for $78k on a bank REO. I also owned 2 more identical units on the street. 1 I sold last summer for $125k. My good friend down the street sold his a few months before mine last summer for $126k. I've got this one that I've got under contract at $120k to sell, and then I'm working on another one at the end of the street which I hope to sell for the same. My buddy is working on 1 around the corner which is a little larger, that he'll probably sell for $135 or so.

We've made some amazing contributions to the neighborhood, and are going to continue doing so -- if the government can get out of our way.

- Hakrjak

 

[phlgirl]

No offense intended. Just sharing my experience and trying to help here.

Apparently I misunderstood, as I was under the impression that this was a 'flip'. I do not know of a formal definition but, in my book, a 3 year turnaround is not a flip.

Hope it works out for you.

 

[MJ DeMarco]

Wow, money is tight. They are fretting over $20K? Unbelievable!!! 3 years ago you could get a $750K loan with no doc, interest only and appraisal at whatever you wanted. Times have changed with the losers being the folks who played by the rules.

 

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[Russ H]

The purchase was made 3 yrs ago for $78k on a bank REO.

I'm with ya, Phlgirl.

In my neck o' the woods, any prop that takes longer than 3-5 months to turn around we call a REHAB.

No shame in rehabs. I've never done a flip.

Well, actually, using hakrjak's phrasology, I guess I've done a lot of 'em!

-Russ H.

 

[lightning]

I had an appraiser come out to my house for a possible refinance a few months back (personal residence), and I was very dissapointed in the results. I shouldnt have worried so much about it, but I spent a few hours making the place look its BEST (just for curb/interior appeal), and the guy walked through the house so casually (and so FAST) it didnt even look like he was paying attention. He didnt go inside ANY room except the ones he walked through on his way through the house (no more then a glance into the bedrooms, bathroom, etc.. He jotted down guestimated dimensions of the rooms on a peice of SCRAP PAPER (no legal pad, no forms, no files, nothing), and took a quick measure of the exterior sides of the house with a tape measurer. He didnt go inside the garage, into the basement, even glance at the large backyard, etc. He was probably at my property for no more then 5-6 minutes (no joke). At one point he commented on my friends car that was in the driveway so I moved on that trying to strike up a conversation with him (you know, build a little rapport ), but he wasnt biting at all. When the appraisal came in a few days later, it came in at about 20k less then we were hoping, and for the exact amount I OWE on the property (which means = NO refinance). I was pretty bummed out.

Good luck Hakrjak, i have enjoyed reading about your progress and learning from your posts so I wish you the best outcome! Keep us posted.