Hakrjak starts 2 new flips....

[hakrjak]

I can't guarentee I can make my posts as interesting as JScott's, but for those of you interested in following along on some real life projects -- I've got 2 new ones under contract to become short term flips... Closing Oct 15th and Nov 1. You can see before pics below:

Flip #1:
Hakrjak's Guide to Real Estate Investing - Pics of Flip#1

Flip #2:
Hakrjak's Guide to Real Estate Investing - Pics of Flip #2

Enjoy 1 is a royal dump! haha


- Hakrjak :fastlane:

 

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[hakrjak]

Details:

House#1:
My price was $119k + $4k of closing costs paid by the seller. It's a bank REO foreclosure, and it's actually in relatively good shape. It's a 5 bedroom, 2 bath, at 2200 sq ft with a 1 car garage and a large lot in a decent neighborhood. It's the traditional style ranch home that people love, with a full finished basement that will definitely add a lot of functionality for the right buyer. The comps in the neighborhood are all above $165k -- So if I can put $10k or less into it, and get it back onto the market quickly and sold, I could stand to make around $30k after commissions are paid, and if I can keep carrying costs low. (* I may have a lease option buyer for this place already, which would require me to invest even less)

House#2:
6 bedrooms, 3 baths, 2500 sq ft., great sized lot -- nice tri-level home, 2 car garage for a net of $112k. Holy snikees -- This could be the best deal I've ever made. House should be work close to $199k by the time I'm finished with it!

 

[djs13]

House#2:
6 bedrooms, 3 baths, 2500 sq ft., great sized lot -- nice tri-level home, 2 car garage for a net of $112k. Holy snikees -- This could be the best deal I've ever made. House should be work close to $199k by the time I'm finished with it!

Wow! That's amazing. Congrats man keep us updated.

 

[Jito]

Thanks for sharing. Always good to see fastlane members taking action!

 

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[NoMoneyDown]

Good job keeping the gravy train rolling along!!

Just curious, but were those comps recent? My wife and I have been looking for a new home (personal residence) for the last 4-5 months now, and recently found a nice property. Our agent ran comps, but said the earliest she could find was for back in May. Of course a lot of stuff has happened since May in the RE market, so the comps she got were pretty much useless.

It sounds like you're selling retail. Any chance of selling on a wrap/aitd? Could be a broader pool of buyers.

 

[hakrjak]

Comps are recent, and I'm in line with current homes listed in the neighborhoods (That aren't anywhere near as nice as my properties will be once completed). One of them I think I have a lease-option buyer for, which would cashflow for 2 years, and then cash me out with minimum investment. She won't want all the bells & whistles I normally put in, just a nice clean home with white appliances, new paint & carpet. The other one I'm looking to sell on the retail market, slightly discounted under what I think it'll be worth to get a quick sale. It's the 6 bedroom, which will take a lot of work, but it's definitely a diamond in the rough. Even in Colorado Springs now it's difficult to find a gorgeous 6 bedroom 2500 sq ft home for under $200k.

Cheers,

- Hakrjak

 

[cmartin371]

Hakr,


Keep it coming. I am definitely interested in the progress here. Good job, and Good Luck!

Chris:fastlane:

 

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[Yankees338]

Good luck! Thanks for posting. I'm looking forward to reading up on your progress.

Did you find these properties through an agent, or did you find them on your own?

 

[hakrjak]

My agent brought them to me, they were right out of the MLS. I could find 20 more just like those right now if I had the money here in Colorado Springs... I'm already shopping for #3, since 1 of these looks to have a tenant already for a lease-option style purchase. Both from banks that we've worked with before, so I think that helped when it came time for negotiation. They also looked past some other offers to us because we told them we could put down 20% if needed.

Cheers,

- Hakrjak

 

[snowbank]

My agent brought them to me, they were right out of the MLS. I could find 20 more just like those right now if I had the money here in Colorado Springs... I'm already shopping for #3, since 1 of these looks to have a tenant already for a lease-option style purchase. Both from banks that we've worked with before, so I think that helped when it came time for negotiation. They also looked past some other offers to us because we told them we could put down 20% if needed.

Cheers,

- Hakrjak

Could you handle a 3rd at the same time? I'd consider potentially partnering up on one since I've got some money I'm not doing anything with.(at least not right now but looking into a few things.)

 

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[hakrjak]

With 3 at the same time, my crew is gonna be pretty booked. You can play poker from anywhere man, why don't you just get an apartment here for 3 or 6 months and run the project yourself?

- Hakrjak

 

[snowbank]

With 3 at the same time, my crew is gonna be pretty booked. You can play poker from anywhere man, why don't you just get an apartment here for 3 or 6 months and run the project yourself?

- Hakrjak

I've found when I try to deviate from how I usually make my money on something I don't like/am not good at(rehab/construction stuff in this case) I usually just spend time doing something I don't like/am not good at for the same money or less than if I had focused my efforts on doing what I'm good at.

 

[Bilgefisher]

Keep it up, been following the flip folks quite a bit lately, I enjoy the progress reports.

 

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[venom]

Why would you be doing any bells and whistles these days ?
Of course mine are rentals. So we do the minimium to get the next person in.

 

[hakrjak]

Market is slow out here, but not dead -- So we find that making a house nice and adding some cool bells & whistles always helps it sell faster. i.e. stainless appliances, a front loading washer/dryer, gas fireplace, whatever it takes

- Hakrjak

 

[Bilgefisher]

Hakrjak, curious where you came up with the cash for these two new flips. Hard money, credit line etc?? The subject is near and dear to me atm.

 

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[hatterasguy]

They both look pretty good. A little spit and polish and they are good to go!

 

[hakrjak]

Hakrjak, curious where you came up with the cash for these two new flips. Hard money, credit line etc?? The subject is near and dear to me atm.

I just took it out of my checking account. I had it from the profits on the last 3 flips

- Hakrjak

 

[ptiz]

good luck with those

 

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