Resources Husband and Wife Team x2 Home Flip – GRRR LLC

November 17, 2023

Imagine the rush of excitement when you stumble upon that perfect property- just brimming with potential. Picture yourself standing there, armed with a vision, a solid plan, and a team ready to turn dreams into reality – talk about an adrenaline boost! If you want to learn more about how our husband and wife team (x2) flipped a house, keep reading.

We wanted to let you in on our latest house-flipping adventure. Now, we’re not claiming our way is the only way, but we’re offering you a sneak peek into how we turned our wild ideas into a tangible masterpiece.

Heads up, real estate investing is a bit like a rollercoaster ride – thrilling, but it comes with its twists and turns. We firmly believe it’s a savvy move, but let’s be real, risks are in the mix. If you’re ready to take the plunge, just remember: surround yourself with experts, like your realtor, who can sprinkle some wisdom on your path!

Genni and I are personally licensed realtors and experienced investors. We also surround ourselves with other areas of expertise including CPAs, legal counsel, credible lenders, and our “not so silent” partners, our husbands- Ryan and Ryan.

Financing

We tapped into one of our sister companies, Equisset, to help gather the capital for this project. Equisset offers asset-based financing solutions that came in handy when we saw an opportunity we were ready to jump on. We used the fix and flip option.

The Search

We began the hunt for our distressed property.

Being realtors, we’ve got the inside scoop. With access to exclusive databases, we find homes hitting the market and always tap into our cold-calling prowess. We also have insight through our systems to fully understand what comparable properties are selling for to begin a market analysis on the purchase price and after-repair values.

Enter the quest for the perfect distressed gem. To us, distressed meant solid bones but in need of a glow-up – no major surgery required. We scoped areas in close proximity to work or home so that we’d have the ability to oversee the project and be on-site when required. In residential real estate, a golden rule is never owning the best home in the neighborhood. This is almost the opposite in house-flipping.

Our golden rule: snag homes in decent neighborhoods, surrounded by well-kept gems. With our network, we spotted the jackpot – a property priced for its current state but primed for a glow-up that’d make Cinderella jealous.

 

Teamwork makes the dream work

After finding the property, we brought in our team. For us that included ourselves- two realtors with a creative vision and also our reputable contractor who could assess the property to give us advice on the upgrades we thought would need to be made.

While some perform their own work-referred to as “sweat equity”, for us, it was more about speed. We wanted to determine a price-conscious contractor that performed quality work but also worked quickly.

Price. Quality. Time. While these factors seem very logical, finding those contractors that could accommodate all three was not a simple task.

We walked the home and came up with a quick estimate. We ran a quick proforma to determine the price we’d have to offer to secure the home, the estimated repair costs, and what the comparable properties were telling us we could resell for.

Value added improvements

Determining value-added improvements is a critical step in the house-flipping process. You have to understand what will add value vs. things you’d just “like” to do.

For instance, while it may be nice to have a large newly remodeled deck on the back of a home, that won’t necessarily add the same value you’ll pay for those improvements. However, fresh floors, paints, and upgrades to the bathrooms are all value-added upgrades.

The quick assessment of this home proved to be the latter. One improvement we determined to be valuable was the location of the laundry. Due to the age and size of the home, the hookups were in the kitchen. We worked with a contractor and turned a bonus room into a dedicated laundry space and just like that- problem solved and space-optimized!

Laminate vinyl flooring, fresh wall and trim paint throughout were much needed. Light fixtures were very dated and could use attention- in addition to the kitchen countertops. The bathroom vanity was old and while functional, not the most appealing. A quick new vanity add that already had the countertops on it plus a cute mirror and a new vanity light fixture transformed the bathroom quickly from 1970’s to 2023.

Curb appeal—is so important. Need I say more? The yellow exterior siding of our subject property needed some attention. We went with a green to modernize it and create a “pop” of color on the street. The landscaping beds needed attention. A little mulch and some plants can make a dull exterior look so much better!

Pro tip: Budget wisely and stick to it- otherwise, your profits may become extremely thin! You’ll want to put some cushion in there in case your determined list price has to be decreased if a buyer asks for any inspection items or additional improvements. You’ll also need to be sure to allocate for lending costs. Even if you’re acquiring with cash, there is a monetary value to having your cash tied up in your project.

The other model we used to lessen our risk is to study the rent value you could receive IF your property doesn’t sell in the timeframe you need it to- or market conditions change and you’re unable to reach the value you originally plugged in.

Again, real estate is rarely a “bad” investment so worst case you add another door to your inventory, rent it, and keep marching down the road until market conditions change or improve.

We hope this helps create another perspective on home flipping for you. Is completing a flip part of your 2024 goals? We are here to help you make informed decisions by leveraging the latest creative trends and opportunities- making all your real estate goals come to fruition. Make sure to give us a call for any of your real estate and investing needs!

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