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Hey everybody, we’re here with Jared lichten. in Cleveland, Ohio going through one of his fix and flips one of his rehabs you want to introduce yourself, Jared, what’s up guys? My name is Jared, LinkedIn is this huge car rolls past. I’m a real estate investor from Cleveland, Ohio, I started investing in real estate in like 2012. Right after I got out of law school, works as an attorney for a couple years, and I pretty much started flipping houses on my own quit my job in 2015. I’m a full time real estate investor, me and my general contractor, which I met back in 2017. We basically transition from doing these single family fixin flips into even bigger projects, I do stuff with other investors, I do partnerships, apartments, all sorts of stuff. So I run my own construction company now and I do projects for myself,
I got a lot of stuff going on. So this is my biggest flip in Shaker Heights, Ohio, it’s Belvoir, I bought it for 166,000. It was a private sale, our rehabs about halfway through, so you’ll get a chance to see like what a 5050 flip is like, and then we are putting about 130 $240,000 into it. I know when I say that, it’s probably gonna end up being 150. But you know, it’s just how these things go, you know, construction is very tricky. And you have to have really, really good people working with you. contractors are one of those things, especially starting out, we got to be very, very weary of who you’re working with, especially in a city like shaker, if you’re not bonded and licensed and insured, they’re not going to deal with you. I mean, that houses you can see over there actually go down and rise see that dumpster over there, they got cited by the city and the city turned right around and turn over to our house. And then they started, you know, scheduling inspections with us. So they were definitely working without a permit. We had our permit. But luckily, we had to go through a framing, plumbing, electrical and insulation inspection here that is not typical for something like what you guys might be getting into as your first flip.
Typically, a lot of people, especially in Cleveland, and a lot of these other mid level markets, they’re going to buy something 30 4050 grand, they’re gonna put about 3040 into it, and they’re gonna try selling it for like 121 50. That’s a lot of typical flip numbers on your first deal. And you definitely want to not pick up something this large and extensive on your first one. And especially when you’re working with a contractor for your first time. You want to develop some familiarity and trust with them by like, how they like to get paid and how they like to order materials and to make sure you’re not getting ripped off and that they’re getting a good price and all that quality is always got to be there no matter what, if you’re paying a low price, high price, quality has got to be there. If you’re not, you’re going to get dinged, you’re going to get dinged on home inspection, the home inspection is going to, you know, dictate whether or not you can sell the house in the first place. So your plan is for this home. So you said you’re about 50% way down on the split. Yeah. So as you can see, we had a lot of framing done in here, we actually had to tuck these 12 by twos up into the floor joist and our carpenter who is really expensive, but does great work. Again, like you said, you get what you pay for in construction. This whole entire thing had a wall right here and then you walked right in front of the front door and you walked right in this frickin coat closet. And that’s like such not like his houses built in 65. So like it wasn’t a great use of space. But typically you come in people like their house a little bit more compartmentalised back in the 50s and 60s, which is kind of like when building code started to get a little bit more extensive. You know, this, I just like parquet floors and like just a bunch of other like dated stuff. As you can see there’s older windows here, we’re getting replaced here in a few weeks. It’s just pretty much everything other than, you know, this, pretty much everything in this house. So this is the framing this is the only thing that’s going to stay we’re gonna have two columns. And it’s gonna look really nice because that the whole goal of these high end flips is you want to open up the first floor and really get people allowed to see what’s going on in the kitchen when they’re in the living room. And what’s going on in the dining room and they’re in the kitchen. Just people love that open concept. And if you what I see a lot of people in Cleveland, they’ll pick up something it’s dated, and then when they’re gonna open up, nothing, and they’re gonna leave this compartmentalised kitchen, and they’re just gonna have the formal dining room, which is really stupid in the first place, you know, just a room this size and that you eat in with a wall right here. And there’s going to be no open concept to hear maybe they’ll open up a wall a little bit and do a peninsula. But ultimately, I mean, this is 29 by 48. So like when you are 29 by 40, until you hit that brick wall. But like when you walk in, you’re going to see this like grand was like open like all the all the light from those windows come in here. All the light from the living room in the dining room comes in the kitchen. It’s going to be beautiful. There’s absolutely no lights on right now.
But yeah, this is so bright in here. And it’s not even a sunny day. Yeah. And we still have yet to like rip all these stupid old curtains out so it you know, a lot of the shit is like, you know, not even you can’t even see anything. So, you know, I bought the house was super dated. Typically when you go through rehab, I want to give you guys a little bit of the numbers. So I purchased this house as a private sale. These were family friends of mine. They texted my family and we’re pretty much just like hey, heard your son’s in real estate. We’re looking to downsize into a condo. Do you think you’d be interested in buying our house? I showed up not thinking it’d be a big deal. Like I do a lot of lead generation talking to people about their house all the time. I didn’t think that this would end up being my biggest project. But they were pretty much just like look, we’ve
In the south since the 90s, you know, we’re getting older, I don’t like going upstairs. A lot of people in Cleveland and all these other mid markets are getting older, they don’t like going upstairs, they have a lot more space than they need to take care of like, this is a pretty big house for two people. As you’ll see. We’re just in like one room. And you know, it’s a lot to clean, it’s a lot to take care of. It’s big utility bills, it’s everything. So a lot of people in their 60 to 75 range are kind of downsizing into either a smaller house living with a roommate or friend if their spouse has died divorce, like there’s so many different options to like, get out of a house like this. And but they wanted a quick sale. They didn’t want to work with a realtor, you know, a lot of people, you know, if you’re talking to them about a private sale, it’s just convinced them that hey, do you want to pay five 6% realtor commissions? No. Do you want to pay? You know, do you want to deal with the city and escrowing all this money for repairs? No, you know, Shaker Heights as the point of sale. So I know, you wanted to talk about the point of sale programs, some people may not know what a point of sale is. So Shaker Heights is a suburb within Cleveland, Ohio, explain a little bit what a point of sale is. So the point of sale programs that Cleveland heights and Shaker Heights have a couple of their cities do have it but you want to escrow money, the problem in Cleveland and shaker is you have to actually escrow a portion of funds to the city before you finish the project. So like basically, if the city digs you for 18,000, and repairs, then you’re gonna have to escrow an extra $18,000 to the city, do the project, pay for the rehab, and then at the end of the rehab, you’ll get your 18,000 back. So typically, I have to bring in Capital Partners sometimes to do that. And now I’ve built enough familiarity with the cities where I don’t have to think about escrowing as much money, they’re super lenient with me, after shaker came in and saw the quality of how we did I mean, we had to cut all the floor joists and actually pocket this thing up here. If we didn’t do that, and we were kind of lazy, this would actually be about six inches lower, and you’re gonna actually see the frickin header running all the way down, which is like not as sexy, you typically don’t want as much framing to show, but we’re gonna have to dry all around it, it’ll look beautiful in the end, and it’ll be good support. So and then you can see all the rest of the framing across. We passed all our inspections, ultimately, you know, the city came through their plumbing, electrical, that passed the framing, obviously that passed, I knew it would. And then the installation, which is not that big of a deal. So is that that’s enough about the point of sale, you guys want to talk about like kitchens and bathrooms and stuff a little bit. So what we’re doing here is you have a 12 foot Island, you can see we drew it here, it starts here runs all the way up to here, we got our gas range stove, we’ll have event coming down prep sink, and the island. Over here, I can actually shoot you renderings from the cabinet company that you can actually show on YouTube, about what it’ll look like we’ll have the fridge here, pantry, so you walk into the kitchen, pantry fridge, and then you’re going to have your sink centered against this window. The biggest issue here that we had to figure out is whether or not we were going to actually take this entire window out or elevate it up and keep it so it’s too low, you know, for the kitchen to be part of here that the countertops typically are about this high. And so we have to take this window out, elevate it to be equal to that window. And the city is going to allow us to put in similar windows in a project like this, we can’t do anything different. Otherwise, we have to go in front of the review board, which is delayed, you know, just causes a bunch of delays. And I’d rather just put in cheaper, you know, easier Actually, these windows we’re putting in are a little bit more expensive. If we wanted to go the cheaper route, we’d have to ask the city if we could do delays when you’re flipping a house kill deals. Oh, I mean, you have holding costs and utilities and all sorts of stuff. You definitely look for this particular house. I know the market here it gets super super hot right now because we’re going into a time of Europe what’s today like March 24. So it’s getting warmer now and the snow is melting and people are you know, their kids are still in school so they can still kind of do the thing. A lot of medical industry is running Cleveland, so like a third of the city simply by their UHF Cleveland Clinic and all the doctors get chipped in for their new residency assignments in March. So I just know how the city works and you know now that it’s March, April, it’s March April May is really hot time. Kids are still in school that typically don’t get out till June. And when it’s really hot in the summer you know people go on vacations, they’re not thinking about buying houses as much market still stays pretty good. But I’m really pushing to get this house done by like mid May, if I can get this done in mid may still have like 50 $60,000 more to spend. It’s a really really good thing for me because there’s houses like this high end, it’s going to look beautiful open concept 3000 square foot four bed three and a half bath house. I know about houses like this that are dated, they go on the market, they don’t even go on the market, they get swept up like that because we’re in a really good street we have a really good area right here. And I expect I might even get my realtor to list and like that for 4450 Mark just because I know it’s gonna be that good.
Okay, so when you’re looking at square footage, and the good lesson is to not just check the auditor, you actually want to have your contractor measure the house. If you think that your house is actually bigger than the auditor says the auditor said this house was 2590 and that’s not it said it was 40 feet across. I had my contract your measure, it’s actually 48. So what happens here is let’s go into this parlor area. So we have a den here. There’s a laundry room, half bath and you walk in here, this is really nice. So this is why we’re looking at $24,000 and windows in this house.
got all these old aluminum sliders. They’re not like the right size to be just, we have to basically order custom sliders. So that’s why things are getting expensive here because everything is custom dimensions, we’re gonna put stone over the fireplace to look awesome. There’s our plumbing run for the, for the wet bar right here, we’re just going to put a basic piece of granite lower cabinets, put enough area here for like a little wine fridge. And you know, as you can see, all our plumbing is already complete, our sewer lines are going up top the water is going like this is what good plumbing looks like if you just want to zoom in here and see like how they solder these joints, these l joint like everything looks so perfect and straight. And if you go down there, you can see how they like everything off. It just is. This is what good plumbing looks like. The reason why I didn’t use pecs or anything, or chose to use copper. These are waterlines. So typically, what we’ve been doing, and I, I’m not a plumber. So that’s the great thing about being an investor, you don’t have to know you just have to know what good work looks like and how much it should cost. Like, that’s the best advice I can give you guys, you have to know what stuff should look like and how much it should cost. Like I look at the slider, I’m like, Okay, I’m spending 1400 1600 bucks installed. But unfortunately, it’s too wide. So if I want to spend that 1400 1600, I’m actually gonna have to frame it in a little tighter, and it won’t be as much won’t be as much space. So like, you know, it’s probably something more like 2000 to do something like like, look how big this is, this is like three sliders in one. So like, that’s just too old. If you’re doing this, I mean, I’m looking to list this house for 400. That’s a lot of money here. And like these sliders, I don’t even know if I’ve ever tried to open them. But they’re, they’re old, they have to be replaced. And if you want to get that top dollar, you have to do everything. buyers are super picky. And especially in a market like this where it is hot, but like buyers can be picky and kind of like pick and choose what they want. They say oh, this is not good. This is not good. You can literally spend $200,000 on rehab, and they say, Oh, I don’t really like this color they did right here like it’s, you know, people are, you really have to have a strong stomach and not take offense to things like I sometimes will have 4050 showings before I actually finish out, you get an offer. So like 4050 showings every single time a realtor is going to submit their feedback, they might you might be sitting there for you know, two months on the computer every single time you get a feedback, buyers felt this was too small for them, or the bedrooms are too small, like they didn’t feel like the rehab was up to snuff. Like you are getting those emails constantly until you get an offer. So you have to have a strong stomach, you can’t take things personally, and very emotional decision because it’s their primary residence. It’s not an investment property. Oh, exactly. I mean, the most of the time, this is the only time they’re gonna be buying a house in their entire life, the majority of people buy either one or two houses and they’re done. That’s the most important financial decision they’ll make in their entire life. Because a lot of the times, if they’re going conventional, they’re putting down 10 20%. That’s most of the time their life savings, you know, 4050 $60,000, which is a lot of money for you know, most, one or two couples down here, either if you’re single, or you have a husband or wife.
So anyways, let’s get off the financials for a second. And let’s at least take a look at what we do upstairs. So what we’re looking at upstairs, four bed, three bath, I’m going to start in the smaller bedroom, and we’ll kind of circle around. So what you have here, you when you’re doing flips, you’d always want to be thinking about the floor plan and the flow of the house. And after you do a couple you’ll get a feel for you know, if you take one or two people with you, usually women are way better at it than men about kind of understanding like literally take your girlfriend or your wife through a house or your friend through house and really, really think about if it was your house. That’s the best advice I could say is like when you’re looking at flip Think of it as if you were buying it for your own house. So a lot of natural light in these bedrooms, higher ceilings, you can see they’re kind of like vaulted a bit with the roof because the roof is kind of pitched this way. So they’re textured, which is not as popular but it’s nice and vaulted. So this is what you call an on suite bathroom. It’s connected to the bedroom. And this would be the best example of a guest suite. So like if you have guests come over, they have their own bathroom. It’s connected. And as you can see, you have tub so here’s your plumbing for the tub, shower, head up here, toilet and vanity. Everything’s already plumbed in. Everything’s ready to be drywall the electrics up here for your sconces. And you know a nice little window so this will be like the fourth bedroom. So that’s what I call bedroom number four on suite bathroom important because sometimes you know if someone wants a little bit more privacy, maybe like a teenager or somebody who is staying at a house like a guest. Typically you don’t like to have them share a bathroom with you. They see your toothbrushes and they see all your rags sitting around it’s like not something you typically like to do.
Oh yeah, you’re not mine. Yeah, but couple little things in this house that’s got laundry chute. A lot of people kind of like this stuff. sauce is built in the 60s so it’s got a lot of closet space. As you can see there were two closets in there. You got one here in the hallway. There was a huge, huge set of built ins here. And we actually close this wall off as you can see, this is just fresh drywall. We close this off so you can see You walk into this bathroom from here so the next part of the head and when you’re walking through a construction site you got to be careful. It’s a good thing that you have construction boots on. So be careful to the our nail sticking up. So we’re walking into right now is the two back bedrooms. These actually share what’s called a jack and jill bath and jack and jill being you actually walk through it and more than one bedroom has access to it up here. Again, vaulted ceiling, but they’re not textured. So this is kind of like typically how I like a bedroom to look got a little bit of a roof issue here that like we’re that we had already fixed up, went through demoing out all this closet and smooth things out.
Nice look at this golf, someone must have liked golf.So anyways, this is a shared bathroom. So this bedroom has access to it. And this has access to it really good for if you have a couple kids, if you have maybe you did something bad and you need to sleep on the couch, you need your own bedroom for the night. But again, for this, this is the house for a bigger family. So ultimately a bigger family’s going to buy this house. And these bathrooms are frickin huge. So we reconfigured everything in here. I think the shower used to be back here, the toilet, I don’t even remember maybe is where you’re standing. But basically, we plumbed everything in to have a nice big double vanity here probably 60 or 72 inch double vanity. As you can see our electricians done up here, our electricians done everything. So all the runs are done all the rough wiring for pendants and everything. This is actually the majority of the work has been completed. What we’re standing in here is the shower. As you can see, we got tile samples from our tile manufacturing, we were kind of figuring flooring tile, for all the bathrooms to make sure that it didn’t contrast too much with our vanities that we’re ordering. Because I do order a fair amount of vanities and tile and fixtures and tubs and stuff off house. I don’t know if you guys know how is he zz. I’m in the trades program. So I actually get like contractor grade pricing on a lot of things. And they’ll do that for you. So what we’re probably going to do right here is our vanities are probably this color. And I really like this. But ultimately, if you have a lot of bathrooms to do, even $1 to $1 to difference on price per square foot can make a difference. So we’re probably going to go with something a little bit lighter, that’s going to contrast some of the darker gray vanities because vanities are kind of like this. And I can actually send Marco the links to them so he can actually show you guys what we’re ordering for this house. Maybe we’ll do an after video in about two months here. So we got this. And then what we’re probably going to do, we got advice from our realtor, I actually took it downstairs or to another property. So this is not white, this this color white. But we’re doing these long subway tiles, very popular, I think they’re like three by 12. And we’re gonna just schluter things off right here with like a black metal strip, it’s called schluter. It just makes things look really clean. Buyers really love this basic subway tile, but it’s getting more expensive to work and kind of be longer. And so it looks just really cool. It’s like that rustic modern vibe. It’s when you’re doing a flip the design end of things you really want to appeal to the most buyers, you want to appeal to the masses, you don’t want to feel to what you like, because things like this, like, there’s actually eight different ones of these. And I know this is like very design specific. But these type of tiles we’re going to use for the niche. So like a shower niche here to like put shelving in, it’s going to look super awesome. I know I only have to have the tiles here. But the tile manufacturer is actually going to make us buy boxes of all eight different designs. So it’s like, I can’t really show you these are just two of them. But like it’s going to look so cool contrasting with like the white subway tile, it’ll probably be like right here. And we’ll just build a bench back here. So like, you want to ask people questions when you’re going through flips constantly, like now that we’re at the plumbing stage, we got all everything plugged in. You want to ask Hey, like, where would you rather see the bench, bring your realtor and say, Hey, what do you think about the shower, they say, Oh, we were actually thinking of going diagonal. But I think it might make better sense for us to just do one big slab back here. And everybody does different stuff in the shower might be shaving your legs or smoking a joint or just sitting there watching TV that you want to give people the most comfortable options because in Cleveland, people are a little bit bigger than in California. You know, I don’t know why that is. But you know, people like to eat their vegetables. So as you can see drywall and electrics complete up in here, you walk into bedroom number three, these are big bedrooms, you really want to think about the size of the bedrooms are a really big deal on a flip. If you get into a house where like you feel really compartmentalize and there’s not that many windows. I mean, even right now you can kind of tell it’s the middle of the day, it’s probably about one o’clock. And there’s really nice light coming in here. And after we take out and put new windows in new windows are frickin such a huge deal for a flip. It’s just, it gives that house that like, I don’t know, it’s just something about like, Oh my god, but you can’t have a $400,000 house with these old like 60s crank windows like at the time they don’t even work in the locks don’t work. It’s just, you know, they’re too old. If you were just doing this as a rental, I would say you’re gonna be fine, but taxes and Shaker Heights on this house are $12,000 a year so like 1000 There’s a month in taxes, things get expensive. So walk in through here, I’ll let you go first go to the Master, I just wanna make sure you don’t trip on anything. This is the master show what we did with the ceiling.
This was like this, but we had to frame in this closet. So I’ll show you real quick, beautiful, like, you know, kind of picture so you can see all the way all the way down to the end of the street here.
The the closets here for the master there was like one here and one here. And it was kind of odd how they just didn’t put them both together. So our architects completely reconfigured this to like bump this wall, probably about a foot, foot and a half. And if you walk in through here, you can see where the wall ended like right here. And we took this wall back a little bit and actually built in like a his and hers closet. So I’ll let you go first you walk in his first closet, you know, you got lights in here, big enough closet for you know, a master, especially if you have another bedroom, a lot of guys will typically just give up to the entire closet. And they can have their own closet in another room. But walk in here and you see a double vanity nice enough for 60 inch 60 inch double vanity is more than enough space for two people. Sometimes you can get a 72. But again, two pendant lights above, you got all the this is what’s called a Bluetooth exhaust fan. And I like to do a lot of these more high end fixed finishes and fixtures in these flips, because I know the price point I know what buyers are looking for. So you want this is the shower, obviously. So you walk in here to the shower. And you can have Spotify or Pandora playing on your phone. And it’ll automatically link up to the exhaust fan and it’ll play music. So you can actually walk in shower, listen to ESPN or, you know, just chill music in the morning, listen to news and get in the shower boom, picks right up and you feel like the younger generations of buyers appreciate stuff like that. 1,000% 1,000%. I mean, if you think about the type of things that I’m doing, it’s so easy. It’s so easy to kind of like get these features into a home if you know what you’re doing on like the plumbing and electric side, which is like the foundation for a really good rehab project. So I can tell my electrician, Hey, can you go ahead and pick up some of these Wi Fi lights for the lower level, they’re 70 bucks, and a regular switch set is like 20 $22. So like I can spend 70 bucks, I can order at&t to install internet here. And then I can say I can order Alexa, whatever it’s called off Amazon. And I can link it up to say, hey, Alexa, turn the lights on. And the lights go on. So you want to like
smart homeowners. Yeah, exactly. It’s just, it’s sexy. You can I mean, literally, there’s so many little things that you can do to house like the front door deadbolt, they have Wi Fi deadbolts now where you can literally get a text on your phone when you’re at work, or like the garage doors open at three in the morning, your teenage kid came home and open the garage door. Everything should be able to be linked up to your smartphone. And you know what’s messed up. Like you don’t even have to set everything up for them. You can just show them that you installed that. And you say hey, here’s the app, here’s the thing, you don’t have to deal with downloading all this stuff, you can just say, hey, it’s already hardwired for these type of things. And it’s really, really valuable for people. So you’re almost not even selling them a house, you’re selling them comfort. You’re selling them, you know, feasibility, you’re selling them like a easy life. So it’s a big deal to people and I definitely at least want to do the Wi Fi lights on this house. We’re replacing the front door. So we’ll probably do the deadbolt too.
go down stairs. So again, I’ll go through the numbers real quick on this project. I mean, we spent about 12,000 13,000 just on the plumber, the electrician is probably going to be about 10 we’re going to have four bathrooms I don’t even know how much we’re going to spend in tile. But the kitchen cabinets we ordered the other day which I said I’ll send to you so you can see up there. This is what the kitchen is going to look like. So $13,000 in cabinets with hardware. Where those from if you don’t mind me asking, What do you want me to reveal all my suppliers were there made psvs these are nice yo calm. I mean, it doesn’t really it doesn’t really matter what the manufacturer is because every manufacturer is going to have like high end and low end stuff like the cabin all, almost all cabinets you’re going to get are made in China. And they’re shipped over here and actually built here. And then they sell it to you. So that’s kind of like the way or they’re built in China and like sent in single boxes and shipped over and then it’s up to you to install them. So that’s not an installed price. That’s just the price you get on the cabinets, but you definitely you can tell the difference between what you buy off the rack at Home Depot. And what you get for house like this, you definitely want to go to a cabinet supplier manufacturer for a house like this, because like you’re going to be getting dings in the cabinets won’t get the right if you go to Home Depot, there’s just that you’re not going to get the right sizes and it’s going to come back and all this is backwards. Like there’s so many different issues you can run into when you buy a set of cabinets at Home Depot unless you’re doing it for like a two or three unit property where it really doesn’t matter. If you’re doing it for flip. You know toe kicks and like things coming out and the appliances have to be appliances have to be set in the right like perfect everything the granite or the quartz has to be perfect. You want to make sure that everything flows perfectly for a flip and you can’t think.
Can’t skimp on things like cabinets. You can skimp on things like flooring, you can skimp on things like paint. But ultimately, people are gonna pick your rehab apart if you’re even doing things like not, you know, changing the switch plates. I can’t tell you how many frickin rehabs I’ve gone through where like, look at this thing. They’ll keep this right here as like a switch plate even though it doesn’t match everything else. And like, dude, like, it’s such the easiest thing to, you know, go 99% and not go the whole 100 it’s just laziness. And it all comes down to money. There’s so many people here who are trying to save, you know, they’re trying to cut corners. And I’d rather spend a little bit more money and make a little bit less if I know my house is gonna sell quickly because it’s just energy for my construction company. They just operate quicker. Pennywise pound foolish almost. Absolutely. Yeah. So this is I really appreciate your time. And your honesty in the basement real quick. Oh,
yeah, we got basement. Yeah, well, the art is pretty nice, too. Well, here, let’s real quickly show you the office. This is gonna be like a nice little office area. We didn’t even go back here. Yeah, yeah, so we got a nice little office area back here. We’re gonna build some bookshelves over here. So you can keep and we’re actually gonna have barn doors set here. So everyone loves barn doors. I don’t know why. But you know, it’s just like, you just feel like a king or queen. You know. So we’re gonna set the barn doors up here. Probably 68 inches across, and then it’ll slide all the way out to where the grand it’s gonna end here. So, obviously, the kitchen is gonna look awesome.
So laundry room, no big deal, whatever, but the basement.
Boom, all the drywall and everything. They had awful paneling down here, we got the new electrical panel set over here. With all the runs going upstairs. I paid the homeowner 500 bucks for their pool table. I didn’t have to but I was being kind of nice. So as you can see, they left their pool table and all their pool supplies here. So at the end, I’m going to pay a pool table company that kind of refilled this. I don’t think it’s in great shape. But this is cool. This is like nice little chill place. They have like pinball machines here and like, you know, it’s a cool basement. It’s comfortable. The glass blocks new and like, Oh, for sure. For sure. You know, even if you’re just having an old rinky dink piano or an old you know, we’ll table it really does do numbers do wonders for you. If you want to really look at the mechanicals furnace, your your humidifier, hot water tank. And as you can see, they ran all new copper for all this up here. Hot and cold water. Here’s the old HVC. And then what they had to take out was all set here. They had like a sprinkler system for the front yard. Went out this way. They had all the old copper running right around here. So we took that out and every like look at how, how intently this has to be cut in order to like that is what you get when you pay really solid money. I can’t tell you how. How many times I’ve seen things done the wrong way. So that’s Belvoir, it’s a beautiful house. You can end up in the laundry room and you didn’t even see one of the bathrooms. We got a half bath down here. I will say this like this is really important. You want a half bath, you definitely want at least a half on the first floor. Because when you’re entertaining and you’re having guests over, you don’t want to have people ask where the bathroom is. And you say, Oh, it’s upstairs. Go ahead and look at where all my towels and toothbrushes are. You want a nice guest bathroom where just you know it’s comfortable and clean and all they need is a toilet and sink anyways.
We’re in here in the laundry room. That’s it. Very nice Beauvoir the garage over there. Not too sexy. You want to see it? Oh, yeah. Sorry. Sorry. Sorry. So we are doing a dog shower here. Dog shower. Yeah, it’s basically it’s a shower basin with tiled up with like subway tile, probably to about here. It’s like, it’s like a little wash patient with a wand. So like people can come in from the outside. Here’s a side door. They come in from the outside, wash their kids muddy boots off. they wash their dog off from running around in the mud. And it’s a huge, huge selling point. It really is. I found that like when you do stuff like that, you know, people hate to say it on your YouTube channel. People care more about their dogs and their own children. Yeah, so that’s exactly that’s, I think that’s a good point to end on. So yeah, man. Anything else you want to run through? find you on social media? Are you on Instagram? Nope.
No, I’m on Instagram and YouTube at Jared LinkedIn keyed up here on the screen. I do a lot on Instagram. I’m putting a big focus on putting out a lot of content there. It is very hard to be as busy as I am and without a D ROC following me around maybe I can hire you for a few weeks. But yeah, man, I just put a focus on putting out really cool free valuable content. There’s a lot of real estate investors out there that have some bs course or you know mastermind they want to pull you into where you know, you’re not getting the value. Like most of the real estate stuff. You can find either online for free or on bigger pockets.
I’m self taught. I’ve never had to buy a course or anything. Obviously I went to law school so I understand contracts and stuff, but like real estate family, nope, nope. Nope, no one of my family’s in real estate. I just got to prove to get my broker’s license in California. So I’ll be a broker attorney investor, you know, I’m 30 I’m 32. So I’m just getting started, man, I got fire under my ass.
Yeah, for sure. Thank you very much. Absolutely. And we actually update this once everything’s remodeled once you come back. So typically what Jerry has been doing is flying in from California, maybe once a month, once every couple weeks. Would it be cool if we ran through this once everything’s updated? Hell yeah. We got a bunch more videos to make, I think. Yeah. And if you want to have any questions about real estate or investing in my company, just DM me on Instagram, follow me, you know, totally cool. Perfect. Thank you so much. See ya.
Hey everybody, I’m Charlie yard with fixated real estate and check out this hoarder house. No, this is not an episode of hoarders, but I’m gonna show you how we bought this property and made over $61,000 net profit on this house. By the time we cleaned it up, polished it up and made it much more beautiful. This was a three bedroom, one bath 1000 square foot home that we turn into a three bedroom two bath home in SeaTac, Washington. Now you might be thinking to yourself right now as you’re looking at these photos, that there’s no way in heck that you would buy a property like this. And maybe you shouldn’t buy a property like this. But I’m going to show you in this video how a house like this can turn into a real real profit machine if you do the right rehab to it and also look past all the junk, but not just all the junk. I wish this was a scratch and smell type of video because this house smells so bad. So stay tuned, because I’m sure you guys have acquired this property, including going through the rehab process from start to finish all the numbers, a couple of pro tips, including how to get rid of really nasty smells, and also add bathrooms master suites on properties that are already small like this one was so that you can increase the value to the property that maybe you’re buying here in the near future. So stay tuned because we’re about to dive into this one right now.
We bought this property for $190,000. Now we bought it from a wholesaler. Now buying it from a wholesaler just means that this person tied it up under contract a purchase and sales agreement and then sold me the contract for a feet. Now I love this story about this particular wholesaler because he was somebody that was coming to our meetups. And working with us a little bit they’re really helping out, they asked a lot of questions. They wanted to learn more about real estate. And so that we gave them some advice, show them how to do it a little bit. And he went out there and found this property on his own driving for dollars and then brought it to us and we paid him a $10,000 assignment fee for this property. Now he got $10,000 we got the property and we ended up buying it for $190,000 total. Now there’s plenty of videos out there on wholesaling and how to assign contract, definitely go check them out quite a few of them on bigger pockets calm as well. We just estimated that we’re gonna spend $85,000, a rehab on this property. And through a series of ways that you can do that I have past videos showing you guys exactly how we estimate rehab on this one, I’ll do a little bit of that. And we also assumed that the after repair value, the ARV on this house was going to be $375,000. Now all instead of done if we did that, right, we’d make over 60 grand. Now before we dive any more into the numbers and what actually happened on this property, I want to show you guys the before pictures, so you can get a sense of what’s really going on with this house. So first and foremost, you can see here on the right, it’s kind of hard to see. But there’s actually a very busy road to the right of this property is actually a total four lane road, it’s actually a major, thorough way to go from one side of a freeway all the way into near SeaTac. Airport not too far away. A lot of people drive on this road every single day, and it’s always busy. So if we were going to do if we were going to do comps, comparables on this property to find other three bedroom, one bath homes, and see what this property was worth after we fix it up. And we don’t take into account that there’s a busy road, we can get really, really hurt financially on the back end of this property if we comp it wrong. So here’s your first pro tip for the day. Make sure when you’re copying properties, you’re copying all the things on a property, not just the the bedroom bathroom and square footage. What’s the neighbors? Like? Do you have a junk yard next to you? Are you next to a really busy road? Do you have a garage do not have a garage, right? Those are all things that you have to be able to take into account when you’re comparing properties. Especially if you’re putting your money on the line hoping that it’s going to sell for a certain amount. There’s a lot of other factors to copying properties. I’ve done some videos in the past on bigger pockets, explaining that a little bit better. Definitely check it out. And if you have no idea what you’re doing, hire realtors to help you through this good ones so that they can help you get through. Now, that said, let’s check this POS out. You can see that the roof is totally messed up. It’s actually pretty faded up on top. That’s a little hard to see from these photos too much. The yard is just trash like nasty trash. The outside does not do the inside justice, the inside is far worse than this. And there’s gonna be a little bit of work that’s needed. So this is a mud pit. You can tell we bought this in the winter in Seattle, Washington. Yes, this is actually what seattle washington looks like all the time in the winter. And outside of that, yes, Seattle, Washington. And that’s why I live in Maui right now. And one day, maybe I’ll go back but the backyard is totally messed up. There’s actually a nice barbecue back there. So that’s something that’s always nice treasure when you find hoarder houses, buy things to take care of. And so for those that busy road, actually, I want to say there it is there’s part of the busy road as well that I had mentioned this fence is definitely an issue. So another quick tip when it comes to that stuff is that when you have really busy roads off to one side of the property, it’s good to just have very, you know, either a lot of vegetation, or very strong fences and so forth that helps gives a buffer to help the trend to help. Try not to detract this from the sale too much because there’s a busy road next
Yep, so let’s go inside the house.
First, when we walk in, you can tell it’s kind of messed up, you can also tell that there is popcorn ceiling on the ceiling. So when we’re going through our scope of work and our comps, we’re also trying to see do the comps say that can we have popcorn to the ceiling or not? Most of the times, if we’re trying to get a higher end value, we want to get rid of that popcorn ceiling. So we’re gonna have to add that to the scope of work for sure. There’s a lot of junk This is right after we purchased it and one of the other red flags when it comes to hoarder houses is unfortunately this here. This is a giant cat tower with cat food still in it even though they don’t live in the property anymore. So this property as you can imagine, just from that little note right there, they had a lot of cats, and cat house hoarder cat hoarder houses always smell the best, they smell the most like money in my opinion.
So all this shredded up stuff down here, everything all over the place. Everything soiled up, there’s me looking bored playing on my phone. Somebody else took this is actually Nate.
Lots of stuff going on in it lots of garbage, this place was pretty nasty. It smells really, really bad. This is the garage, as well, we had a lot of stuff we have to take care of out of here. so much stuff. can’t even imagine how much crap is in this house. Now how do you even deal with a house like this? How do you figure out what’s wrong with it? How do you find what’s the infrastructure issues? How do you know what the floor plan should be when it’s really hard to even walk through the property to begin with. So some of the things you can do even though there’s a hoarder house like this, you can make some wild assumptions, right, we can look in the attic space and look for structural stuff, we can look at the crawlspace. And look for structural stuff, we can look at the electrical, we can look at the plumbing, we can look at the infrastructure of the property itself and see if the properties sound. And if there’s any major issues with it that we can do, whether it’s a hoarder house or not, what we can’t do is figure out how bad the finishes are if there’s any other damage hidden behind the walls or anything along those lines. So if that’s the case, we always make some very large assumptions. Some of those assumptions are assuming that we’re saving absolutely nothing. inside this house. When you have a really nasty hoarder house like this, that smells really bad. This is by far not the worst hoarder house I’ve ever purchased. This one was pretty tame, it just smelled really bad. We’re going to assume we’re saving no bass, no trim, no wind, no doors, no finishes, no cabinetry, we’re going to kills everything which we’ll go over in a minute, we are going to save nothing. So that means that we can automatically estimate that we’re doing everything, it makes a little bit easier for budgeting, and allows us to put a little bit more buffers in there. And it’s a bonus if we can save anything, which we probably aren’t going to most of these properties. So going through it you can see it’s still more junk, lots of stuff to go through. The house isn’t too bad floor plan wise, which I’ll show you. But this is a giant bathroom. So this is actually a bonus for us. Huge bathroom, there was also a washer dryer room that was actually very big too, as well. And we’re trying to find space in order to be able to possibly add another bathroom somewhere. When you have a giant bathroom in this particular house and you also had a giant washer dryer room that were right next to each other, it kind of gave us hope that we could probably find a way to add a master bath. Now after going through all these photos, there’s not much more to really deal with you just know there’s a ton of junk. Let me show you guys the floor plan. Alright, so here’s the floor plan. So the front door of the house is here, right you got a living room, you got a fireplace, you also have your little kitchen and here’s that garage that we were in that was full of tons of stuff. Now the big King, that thing that I want to show you guys is this here, there’s a giant bathroom, and there’s a giant washer dryer area. There’s three bedrooms in this area too. We’re trying to find dead space, we’re trying to find things to be able to figure out how to move walls move locations of different items to be able to add a master bath to this property. All of our comps said that we needed to make this property a three bedroom two bath home with a master suite. Now when we look at this here, we see we have a big bathroom and we have a big washer dryer room. And we also have a garage. So we’ve done enough properties like this that we figured out like hey, why can’t we move the washer dryer over to the garage. A lot of people are used to taking especially a house in this particular neighborhood a Rambler or rancher, they’re used to taking their washer and dryer and put it into the garage to begin with. Right now Sure, it’s nice to have a laundry room. However, it’s not totally needed. It’s more important to have a master suite. Now this bathroom is really big. It’s an almost a nine by seven and a half foot bathroom, which is a big bathroom for this area. So we know that we can take some of this space and we can take this washer dryer area and we also know that all the plumbing is in this location of the property too. So that’s another key thing. So when we’re looking for things so this is a pro tip, we’re looking for dead wasted space, or big rooms that we can take from to be able to add additional rooms or additional bathrooms to a particular area. The other thing we’re looking for is loads. Now load walls are very challenging to move unless you beam and put the proper posts and footings and
Go forth. That’s why a lot of people get in trouble is because they take out the wrong walls in their properties. So if you don’t know what the load wall is or what your property’s engineering needs to be, or anything like that, and you don’t have the skill set for that, that’s where your professionals come in, you can, you can talk to the right architects, engineers, highly qualified contractors, the right ones, there’s a lot of unqualified ones out there to be able to help you figure that out. Now, this is a rancher slash Rambler home, depending on what part of the world you’re in, and it’s just a giant rectangle. Now, on all of these, almost always all of these, there’s one load wall down the center of the house. Now this particular property and don’t quote me on this, okay, let’s watch you.
I’m telling you, from my experience on this particular property, the load wall is right here. That’s why this kitchen has a wall load here is why there’s actually beams up in this area as well. And there’s a hidden one up in this location up here, too. So we know that the loads there. So we want to do everything we can to not touch this wall. And if we open up this wall for the kitchen, then we’re gonna need a beam, it posted all that great stuff with the footing. So with that in mind, we know we need to only work with certain locations of the property or certain portions of the property in order to be able to add bathrooms and baths and that type of stuff. So what did we do, we decided to get rid of this entire washer dryer area and add a new bathroom there instead. So we added a hall bath there. And we took the old bathroom that was here and made a little bit smaller bathroom and turn it into a master suite so we can get a bigger bedroom. Now, like I said earlier, we found out that this is the Mary major load area, which meant these walls this way, we’re not load on this property so we can move them around really easily. With our contractors one more time, definitely consult professionals. When it comes to this stuff. Don’t just go knocking it out. We also didn’t like on this as built here that there’s three closets in one area here with no real like big bedroom closets, master closet or anything like that. So we took some space and made that into a little bit better closet area. And we decided to add a coat closet over here instead. Because there’s too big of a closet in this room. So we just switched it around and added a coat closet there. So something that I learned a long time ago, many, many, many years ago, when I was newer to this business, we used to rehab these properties in floorplan, design them and we’d always forget to add coat closets, or anything like that, because I’m a dude. And for whatever reason, I wasn’t thinking about it until we hired Serena who’s way smarter than me. And she decided to say hey, it’d be really dumb to keep flipping these houses and never having closet space anywhere. So we always make sure now, if we take away closets, especially coat closets that you could put, you know, cleaning stuff in vacuum cleaners, that kind of stuff, we need to add it somewhere else. And that’s been a mistake I learned many, many years ago. So we didn’t do what HGTV normally does. And open up the kitchen wall. Why this whole area here is actually not that big of an area. And if we knocked out this wall, it would make the kitchen very, very challenging to make it flow correctly. It’s also not big enough to make it add a peninsula here or anything like that to expand it. So we decided to keep this wall here and just get rid of this wing wall that was there just to kind of open it up a little bit more and make it a traditional galley style kitchen and move the washer and dryer over here instead. So pretty basic floor plan, add a master suite, move a couple walls, move the washer dryer over into the garage, right make the kitchen more functional, and then do a ton of cosmetic cleanup including also electrical and plumbing updates on this entire property. Alright, so I want to show you guys when we did this rehab, there’s a few things that we did that really helped us out. One is I said earlier, there’s a lot of smell on this property. Now one major pro tip that I’m going to give you on here is something that’s been a tried and true strategy for us when it comes to getting rid of horrible smells from hoarder houses. There’s a lot of ways to do this. Some professionals do it different ways. For us. This has worked for us for many, many, many years and it works really really really well first, get everything out of the property that smells right which is pretty much all the garbage trash all that stuff. Get rid of all the bass get rid of all the trim, get rid of all the flooring, usually a lot of the smells are trapped in there especially carpet. So here’s the real pro tip. We use oil based kills and ozone machines to get rid of most of the smell if not 100% and not 1,000% of all the smell in a property at any given time but when we need to now depending on a lot of other variety of things is there a bunch of feces and urine and soaked in the sub floor and all this stuff that nobody likes to hear but the truth when you buy a hoarder houses are really nasty ones like these. That How much do you have to go as far as ripping stuff out so sometimes you have to rip out all the sheetrock. Sometimes you just have to get rid of all the stuff. Sometimes you have to rip out the sub floors. We’ve even pressure wash the inside of houses before because it’s been so bad. Once that’s all said and done we always want is this smelly? use oil based kills two coats and
And then an ozone machine to wrap things up, I can promise you right now that that’s probably going to get rid of 99% of the smells that are in houses at any given time if you need to best to do that at the beginning of the property, so jumping into some of the rehab and what happened there, you can see that jumping in this house here you can see we’re doing some new sheet rock, we also got rid of all those popcorn ceilings, and we’re already skim coating stuff on this house. And we did kills everywhere, the floors are all white now. And shiny, everything’s been ripped out, all the sub floor was taken out of the kitchen for a lot of reasons. There’s some floor missing in some other areas too, because it was pretty bad. But we were killed everything in any places we need to rip out sheet rock, we just went ahead and did it because it was so bad. When it came to framing, this was the washer dryer area that I mentioned earlier on the property, this there was a coat closet here that we removed, and we decided to add the extra bathroom in there.
So this is where the there was a door that went to the outside area of this property. So here’s the thing, if we’re going to add a window somewhere, right, we might as well add it where the doorway was. Now this isn’t in the middle of the room, you might want to think that’s in the middle of the room. However, there was already a doorway here. And instead of having to do more siding than we need to and so forth, we decided to put the window where the door already was, it makes it a little bit easier for the actual siding and exterior work in the most part, and also for the framing because they just got to fill it back in.
You can see we have a lot of galvanized plumbing here, we’re gonna have to rip out. So galvanized plumbing is not necessarily bad. But on this particular property had a ton of it, it was pretty rusted and nasty. So we actually replumbed the whole property including redone wiring it. And then this is the part I always like when it comes to framing and opening up properties. This the doorway for this room used to actually be right here in this area here. And we moved it over. And this is where that space was there used to be a wall here. And this used to be the big bathroom. So the big bathroom used to be this giant area. And we got rid of all of it and made the bedroom a little bit bigger and push that wall there. And you can start seeing how much space that we got from doing that. So we could put here’s the doorway, we could put a master bath and we can also put a new bedroom there as well, making a much more functional floor plan. And with a master suite. Now I’m about to go over the numbers with you guys in detail. So you can see how we calculate this stuff out. And I’m also going to go over a major thing that really screwed us on this property that was completely unexpected. I almost think that I’m supposed to have all the bad stuff happened to me on these properties. So that way I could teach you guys and have great learning lessons for you. It’s not something I really like having learning lessons on. But we really really got messed up by the city on this one and we show you what I mean by that here in a little bit. But before I get into any of that I want to show you guys the final photos and how this beautiful property turned out. And voila Here we go. Much much different property right now when you look at this thing you might go like how come taral you cheap and out and you still have gravel and you didn’t put a driveway in and you suck at what you do I know some of you guys are watching this thing that and you don’t put any cement or asphalt or something I would have totally done that. We get to the point on a property sometimes and you go Wow, we spend enough money on this thing. And is this if doing a driveway going to detract or attract more into the sale Okay, it probably would add to the sale would it add value and make the house sell for more? Well, I didn’t think it would because a lot of houses in this particular neighborhood had gravel driveways, so I wasn’t about to spend another couple 1000 bucks just to put asphalt in this thing or cemented this thing for maybe not getting any value out of it. So I cut the cord on that one for sure. But we did put a fence to be able to separate the actual road so I didn’t talked about that earlier we built the fence to the side instead. So that way we can not have that road right there staring at you. There’s also a bus stop like right here too. This was all kind of here and we did the best we could to make it prettier. But we didn’t want to spend any more money on the outside that we could but as you could tell the house is very pretty and turned out well with the finishes. This brick was always there. We just brightened it up. You can paint brick, you can you just have to do it right there’s certain masonry paint that you can use different primers that you can use as well to be able to make it last longer and actually not chip and peel. So despite what those naysayers might say out there you can paint brick brick, you just got to do it right. It’s very important. Everything on this house became brand new for the most part, all the new windows electrical plumbing and all that stuff we have inside of the entire back of the house was because it was totally rotted out and messed up. Going into it. Boom looking great new laminate floors. Obviously new paint did a lot new sheetrock and stuff as well as skim coat and everything get rid of that no smell in this house. What you don’t want smells are important. You don’t want to do all this great work and walk into this beautiful home and have it smelly back. So definitely take the time to do what’s right to get rid of the smells.
And hope that they never come back because he did it right. So I do none of these finishes. I never pick any of them out. Our teammates do that. We also have the realtors figure that out as well for us but it looks really really nice. I’m very happy with the way it turned out. This is our modern, you know tunnel.
house as well.
For crackled glass stuff that people do, whatever bedrooms look great, there’s that master suite looking awesome,
awesome little tile going up and down there, I did not design any of that. And maybe I should, maybe I should be involved in these things more but I’m not. This is just I hire other people to do it. We also decided to go the modern route here, I guess they call this the one and two thirds route or something like that. I don’t know, it’s very European. To me, we have this little bench here because we have that extra space, whatever looks good. So one little tip too is that this is a wash this is the water what the wet wall. So the bathroom on the other side, if you would have noticed also has the plumbing on the same wall. That’s another way to save money too is that the plumbing for all the plumbing of both bathrooms are on the same wall. Typically you need a two by six wall for that to to make a right
bathroom, bedroom turned out great, we put a new fence in the backyard to here to be able to separate the road, that big tree need a lot of trimming. And we just turned it into a nice backyard. We put seed in the grass here, but it was the time of year that it wasn’t really going yet. Okay, so let’s talk about the final numbers on this house. How did we do now we bought it for 190 we thought we’re gonna put 85,000 into it and we thought it would sell for $375,000. Now what did we actually do on this house? Well, let me go to my trusty little spreadsheet here I’ll show you guys step by step this I use this sheet all the time, it’s my favorite sheets fast, quick, all the stuff, there are a ton of sheets out there you can use to be able to figure out p&l Profit and Loss sheets, one of the best ones out there is on the bigger pockets calm web page. So check that out. I use this one for flips, I use the bur calculator all the time on bigger pockets calm. So for this one particular flips, we bought it for the exact dollar amount including closing costs for $190,857. That includes a $10,000 assignment fee that we paid our friend the wholesaler to. Now we also instead of putting $85,000 into we spent exactly $84,148 on rehab, and the best part of all, it’s sold for over asking for $390,625.
Now what are all these other weird numbers down here mean? Well, there’s something unlike other people might tell you is that there’s actually some real costs to investing. So how do you pay for the money, there’s the holding cost, there’s all the fees, there’s all the transaction stuff. If you buy a property for $200,000 today and sell it tomorrow for 210,000 on the market, you lost money. Now I’ll say that again, if you bought a house for $200,000 today, put it on the MLS and sold it for $210,000. Tomorrow, you lost money, right? Why? There’s real estate commissions there escrows fees, there’s title insurance, there’s all sorts of stuff, transactional fees, taxes, property taxes, in our state, there’s an excise tax 1.78% of the value, you lose money. So because of all these fees, let’s go over these fees for a second.
We average out utilities and landscaping because we do that all the time. But we also have our insurance and our property taxes. And it took us a total of time of seven months from purchasing it, permitting rehab and put it on the market. Now this house did not sell as fast as we thought it would. And I’m going to show you exactly why. And for lack of a better word. It’s called getting screwed over by the city. And I’m going to show you why that they screwed us over here in a minute. It really sucks kind of a funny story looking back on it, but they kind of screwed us a bit on that one. So total holding cost for our hard money, we borrowed private money at two points 10%. That at $265,000 loan, that equates to 20 $200 a month interest payment for the cost of money. Now over seven months, all these holding costs equate to $19,562. Now we also paid two points for that money. So that’s another 50 $300 in costs in fees. On top of all the other stuff that we have. Now, you could buy this thing cash. And if you bought this thing completely cash, you can get rid of these holding costs here and get rid of these points, which might equate to about another $16,000 give or take in profit if you bought the entire property cash. Now if you don’t have that type of cash laying around, or you have lots and lots of projects like we do, we leverage our properties through financing them, I suggest you do the same. Now selling costs. This is the one that always pisses me off the most To be honest, is we also sold the property now we had some costs involved. State of Washington has normal settlement costs, your escrow title, all that kind of stuff, recording fees, and an additional 1.78% of whatever you sold the property for comes right off the top. That’s not property taxes. That’s not income tax. That’s the state of Washington tax. So if you’re not in the state of Washington, this probably doesn’t apply to you. But 1.78% so I have to account for that. So that’s about 2.3% total costs, or 80 $900 in fees just to sell the property.
We also pay a real estate commission, a 4.5%. On to this particular broker. A lot of times it’s 5% or 6%. Depending on who you are. We pay four and a half because we’re
Cool. So that’s another 17,005 78 in, in real estate commissions to sell the property on market. And this little thing here, it’s called seller concessions. Now you don’t always see these depending on what part of the world you’re in. But all that means is that the person that bought it, bought it for a set amount. And we also gave them $3,000 back to help pay for their closing costs. In this particular case, we gave them 3000. Now we negotiated that typically in the somebody offers us 100 $385,000 price purchase price, and they want $5,000 in concessions, I’d rather have them offer us 300, and sorry, 390,000. And we’ll give them the five grand back. So we try to negotiate them as much as possible. But in this case, we gave him 3000 back, but we did sell it for 390. So our actual net is 387.
Adding all these fees all together, that’s a $61,196 net profit over the course of about six months give or take of work. Now, is that worth it? Yeah, 10 grand a month, not a lot of work involved pretty easy house, hire the right contractors, make the right plan, find the right property network with the right wholesalers, and you got yourself a great deal probably would be a better deal in the long run. If you kept it as a bur by rehab, rent refinance, repeat, I have a lot of videos on bigger pockets explaining that. And in this particular property, we had decided to sell it. I didn’t like the neighborhood that much. Now I want to go over why we only sold it for 390 because I think we could have sold it for close to 400,000. But we’ll never ever know. Now why didn’t we sell it for that much. So I’m going to go into my final pro tip for you guys. And that involves always drive your properties or somebody needs to drive your properties for you and check on them to make sure that everything’s okay. Now we listed this property on a Friday morning. And now on that Friday morning, we put the sign out everything like that the realtor did that. Now we don’t we didn’t do an open house on this particular property. We didn’t think it needed it and so forth. So the realtor never went to the house realtor put the sign in the on the property on Friday morning, the place went listed went live when active pen went active right away on the MLS. And then it sat there and we didn’t see it. And we didn’t even go to the property until Tuesday to check on it. Somebody on my team went to go check on it. And when they showed up there on Tuesday, after the first time it’s on the market had a whole bunch of people showing up to it. It was a very exciting property for that neighborhood. We had no offers on it by the end of the weekend, which was very surprising to us considering we had about 30 plus people go to the house on their own to look at it and we show up on Tuesday. And here is the notice on the door. I’ll read it to you.
It says findings required inspections have not been met performed per IRC International, international residential code and the SMC c tag municipal code they must be completed building permit insulation and drywall and re roof completion at all sub permits electrical plumbing mechanical walls may need to be open for inspection signed inspected by some city inspector whose bag and that’s from the city of Seattle I’m sorry city of SeaTac Do not remove this notice this is what we call a red tag in the industry. Now why am I upset at this city? Should they be upset for me because they’re assuming that I didn’t pull permits on this property maybe but I did pull permits on this property are they upset at me because I didn’t get my inspections? Well they think I didn’t get any inspections. But I got all my inspections in fact I was already signed off and filed on this property as well. All my permits were completely closed up I did everything right. But for whatever reason this particular inspector because it’s a busy road, was driving on the busy road and saw the the for sale sign and assumed I was a low live house flipper take that didn’t pull a single permit on the property at all. So instead of checking on the property, records in his own city in minutes, minutes capacity, he assumed it was unpermitted and put this notice on the door that day we listed the house. So here you are homeowners looking for a new home, coming to our property excited to see this brand new house on the market listed just fresh. And right there. smack dab right on the door is a notice sale from the city of SeaTac saying this sucker did not pull any permits and it’s a crappy house. Stay away from it. Don’t ever buy it. That’s pretty much what it says. So that pissed us off. So we get in the city. We started getting attorneys we got involved, they re the city immediately pulled this thing, apologize big time did everything they could to make it right. But there was no way they could make it right because we already lost whatever momentum we had at that time. So it sat on the market a couple more weeks. We got over asking an offer on it, which was fine. I could have gone after the city for some sort of damages. But it would have been one of those things that you go to court, maybe settle out Who knows, spent a lot of time energy and effort on something that may or may not have played out I probably would have won something for sure. For this because of them affecting the sale on the property. But I also made the judgment call that it wasn’t worth the effort and what we could have gotten out
It vindictively I think I should go back in time and actually, you know, go after that Inspector, but it is what it is. So all of that I hope you guys learned something, make sure you guys keep in touch with your city inspectors and officials to make sure that they like you. And that said, I hope you guys got something out of this. You can always follow me at taral yarber on Instagram, make sure you comment like subscribe to this video and bigger pockets and I’ll see you on the next video here shortly.
Because it smells good and sold it on Market to beautiful family who’s now living in it right now. Just like in American homes, dreams bla bla bla and I want to show you guys how you can find that diamond.
I’m gonna show you how to find the diamond
that would be crazy.
I want the diamonds
Okay back out at 42 corneal street here in Ludlow. Walking up to the project here. We got the roofers, covered porch all being built this week. looking great. Next we have a different home really. This should be done by today or tomorrow they’re telling me but I just love the way that looks now. covered front porch. gutters and downspouts to follow. So this is up on Cornelius near the pharmacy. We got the grocery store right here. My buddy Steve is reopening the buffalo bar right there on the corner. So that’s going to be open. He tells me he doesn’t know when but maybe four or five, six months from now. They’re rehabbing that property that bar so here’s the street scene now. Yep, the Ohio River maybe three blocks down the street here. Has on street parking only. No off street parking. But the next to this project is a house I own at 40 corniel. We bought and rehabbed that one last year. It’s a nice treat though. 38 looks great. 36 looks awesome. And such forth. 44 my buddy lives there. He’s a client of mine to be Nick 46 that house was bought and rehabbed about two years ago and walked down the sidewalk here. Sorry for jumping around. And your heating and air systems done.
For this new concrete front porch, steps, real electric. All new plumbing. Got a fence being built via gate and the fence right here.
The new homeowner has a dog so she wanted a privacy fence and a gate into the front of the house the side of the house and then back in the backyard here. We got this privacy fence. Looks really nice. turned out great. Just got a shed in the back for the sidewalk. The concrete pad was already back there. Here’s the other side and then that’s where that gates gone. Right there. There’s my mom’s tomato plant that’s looking good. She tells me she’s gotten four tomatoes as of yesterday. Anyway, this fence turned out really good too. big backyard. So let’s see here. Some nice bread that was here. Good save cleaned it up cap it.
There was a basketball hoop out here we took out. She didn’t really want it. But this nice for a perfect area for a barbecue table. umbrella chairs party. Party Party. Here is the rear of this home. It’s a big house like 1900 Square feets and change. The four bedrooms, two and a half baths. First floor master the rear entrance there was double doors where the master bedroom is going and then attached to that as a full bathroom. So that’s what she wanted us what we did. Looks like the gutters. The downspouts have been completed. Good. So anyway 42 Carney on Ludlow. We’re about two weeks from completion. It looks like
I will. What’s up Sanya? Hey, Ron, you guys need any sex and flip or rental loans. If you have any questions for me about investing in real estate, how to finance them, just give me a call or text. Thank you. Talk to you soon.
Hey, it’s #TONELOAN down here in Ludlow and Corneal Street. There’s a house I bought for $10,000, a year ago, successfully renovated that.
And then, about six months later, bought this one for next door to it for 68,000 and renovated
that over the last four or five months and sold it and closed on it about a month ago for $225,000.
So if you want to learn more about how to buy houses, how to finance houses, get these things, rehabbed and sold.
Give me a call 513-478-1237 I’ve been in the mortgage business now for 27 long years so I can I can help you out with that.
But anyway, investment property transactions, flips, buy and hold long term rentals.
Wherever you want to talk about just give me a call 513-478-1237 Talk to you later.
Okay #TONELOAN back at you on this video talking about buying and rehabbing and selling real estate, also known as flipping houses. I am headed to my last purchase transaction. It is in Bellevue Kentucky about 10 or 15 minutes from where I live here in Northern Kentucky and Ludlow how to turn that Bengals Browns game off man they’re just just dusting us today. I guess the Bengals are now the bungalows again. Anyways, I bought this house in Bellevue about three weeks ago. Paid $141,000 for it. gonna spend about $70,000 renovating it real nice. It’s gonna turn out really really good. It’s a ranch style home. 1600 square feet, three bedrooms, one and a half baths and a first floor laundry. Probably going to have it done by the end of the year, if not sooner. And I think I’m going to open up a 279 Nine list price. So investment, property, flips rentals, cash out. No documentation needed. These are asset based loans. If you got good credit a little bit of money in the bank, I can help you. Give me a call anytime. 513-478-1237 Tony Carson talk to you later.
Okay back over here in Bellevue today the house has been cleaned up and cleaned out. trashed out we call that thorough about 90%. Finished. Looks way way better than I did believe it or not.
There was a lot of stuff in the basement that I did not get on video the other day but man, it was two or three trailers worth of crap basically cluding a 1980 style tanning bed and I said that was a backbreaker cabinets gone countertops gone the island is gone so we got a redesign this kitchen it’s pretty good size What is this 456 I’d say 10 to 12 feet by 10 to 12 feet kitchen just got a quote to have this fence torn down the shed torn down taken away and love out this backyard. Just kind of scalp it basically of all the debris and weeds and start over make it a real nice backyard and I get a new shed back there. And I’ve got a fire pit some pea gravel get some seating outside some lights brand new fence and a gate and then out here we’re going to pour through car parking pad concrete so a backyard will be parking firepit barbecue, new shed new fence negate some of the neighbors beautiful out here beautiful day to some Walnut Street in Bellevue 1600 square foot ranch style home and then a build a covered porch and deck off the rear door here. So we’ll be able to have a ceiling fan and TV barbecue. It’s gonna be about 10 by 14 It looks like the roof and the siding gutters. downspouts are four or five years new heating and air systems new house came with some mulch yeah Belka door it’s in good shape I repaint that all the windows are newer kitchen from the outside looking in rebuild that gate up there to be new the fence to match. New glass block windows are coming this week for the basement there’s like six seven Yeah, kitchen will be beautiful. This walls actually coming out. I open that up so you’ll have an open kitchen into the dining room area is a big rooms your dining room area over here in the corner we’re adding in half a bath and a close this entrance off so that Brian that bedroom behind there is has its own privacy. No door here. That’d be gone. Cinco go right here. Toilet. No we’re gonna bring the washer and dryer up here as well. So you have a first floor half bath first floor washer and dryer area, build a wall for foot out from here kind of has the half bath separated by a linen closet. The center of the wall so this house becomes three bedrooms, one full bath a half bath first floor laundry room.
Here’s the living area curtains down house has new blinds and then we’re going to open up that wall there and create a door entrance into the master bedroom.
So that master bedroom will have its own access from the living room into the bedroom and then close off this door here. So that that’s gone. So it truly becomes a three bedroom and then there’s that area that’s going to be closed off as well. So I’m standing in the middle bedroom bedroom number to close this off. Here’s that area that we’re going to blow into create a door and a closet here coat closet on the other side instead of letting it run. This is probably what would become their master bedroom here. So bedroom one, bedroom two and then walk through this area here. Straight ahead is your full bathroom or demoing that making that new making that cool, modern clean cluding the floor that’s coming up. And then the third bedroom would be here off the kitchen. Full bath and then third bedroom. Sash closet. New windows new blinds. That’s all Stan we’re gonna paint the entire house probably go with agreeable gray white trim, like I like to do and keep it as neutral as possible for the next homeowner. So yeah, that’s a big house. 1600 square foot, three bedrooms. One half baths for for laundry here in Bellevue on Walnut Street. My team says we can have this done in about 60 days from today. So this house should be ready for sale. end of December beginning of January. So if any questions give me a call about how to flip a house, how to obtain financing to flip the house. Any type of investment properties I can arrange for financing and help you with a lot of different things when it comes to real estate investments and financing. Street Scene got a covered front porch here. Clean up that beadboard and re stain paint the outside of the house the trim, not the vinyl sidings, news, so that’s gonna say gray kind of a light medium gray. Probably go with charcoal gray for the trim work. The poles here paint the brick, charcoal paint the poles white probably charcoal front door color. I like that today. Or this old ugly green and then the front of the house it’s pretty daggone nice. This nice wall here clean up the landscaping. It’s a good area to landscapes. It’s pretty now that’s really going to be pretty soon so lots of work over the next two months. Hoping to be done in two months. See what happens. But this house is surrounded by a lot of beautiful homes a lot of brick homes to at the corner of walnut and Taylor Street. I believe Lafayette is the other corner up here. Lots of off street parking or on street parking. Excuse me.
It’s a big wide road. It’s a nice house. Alright, well thanks for watching. If you have any questions, give me a call.
All right, if you want to learn more about investing in real estate you need to give me a call 513-478-1237 rental properties, fix and flip, fix and hold multi families. I closed on a 12 property blanket cash out refinance one day last week. I can help you. Again anything to do with investments. I’ve got no documentation loans, also known as stated income for investors, one families for families, five or more units 513-478-1237 Give me a call anytime. And this is one of my houses that I’m personally flipping, it’s here in Bellevue, Kentucky. Bought this about six weeks ago. So we are in the middle of week five. Some nice hardwood floors underneath. Kind of redid this house got a three bedroom, one and a half bath home now with the first floor laundry. It’s about 1600 square feet. So this house should be finished by the end of the year. That would be about 12 weeks and get this thing sold hopefully in December, January. But again, Tony Carson here 513-478-1237 If you have any real estate questions, anything related to investment properties, give me a call. Thanks
All right, here we are. Ludlow Kentucky. This is our flip in progress. I’m upstairs right now. We’re starting the demolition last week and more of it this week this bathroom is being dismantled and it’s going to become this area will be one big bedroom basically the old shower was here the current people were using this as a bedroom as well. So we’re gonna it’s gonna make one really nice big bedroom. Second floor Okay, thanks. We’re the house you’re on the second floor and then walking up the stairs hallway into the what’s going to become laundry room and full bathroom. So second floor will have its own laundry room habits laundry room and this is where the full bath will be relocated. Okay, so moving on into the front of the home. Big bedroom here. This house is going to become three full bedrooms and two full baths. It’s about 1800 square feet. It’s in the historic area of Ludlow and it was built seems to be in the late 1800s Maybe 1900 1910 It looks like
so we’re going to restore it and keep as much as we can. Alright, so head downstairs keep this hardwood staircase banister. front of the house here is the living room. Front porch here it’s a really nice community down here at Butler and forest and Ludlow you walk in here we’re gonna expose the brick behind that chimney there. This is walking into the I have it as a dining room but I’m moving it I’m making it a kitchen
so this will be a kitchen here really big kitchen really nice kitchen. Plumbers are here doing Ruffin work. Electricians started they start today or tomorrow so really big kitchen I think it’s like 17 by 17 close to that. And then what used to be a kitchen is now going to become a master bedroom
watch out for nails. I am in a construction site. Alright so the flow living room kitchen, Master Bedroom with an attached master bathroom like this has been demoed this week for the shower used to be vanity toilet sink. Small was opened up and then that back area will become a big closet. So three bedrooms two baths Ludlow 1800 square feet. If you have any interest in buying this house or renting out this house, come January give me a call. 513-478-1237 As always, thanks for watching. See ya
What is a fix and flip? What does that mean to you? Well, to me, it has to do with buying a house, renovating the home, and then selling it for profit. If you guys want to talk about that subject, give me a call 513-478-1237. I have been in the mortgage space for 27 years, and I started buying and selling property houses about two and a half years ago. This is one of my properties that is in process or progress. It’s in Bellevue, Kentucky. We have been working on this ranch style home for about eight weeks. And we have two or three weeks remaining. It’s a three bedroom, one and a half bath house. It’s about 1600 square feet. My goal is to make $50,000 in three months. So if that interests you, please hit me up at 513-478-1237 conversations are free. If you like what we talk about you want to get started I will help you. I will help you with real estate I will help you with financing. If you have any questions, comments or concerns. Also give me a call. Here’s the kitchen, white shaker cabinets, stainless steel appliances. Nice flooring. Thanks for watching this video. Please share it and get a hold of me. Have a great day. Thank you
Who wants to buy a rental property down in Naples, Florida?
About a second home? Primary residence. Just give me a call 513-478-1237 As always, tone loan here.
Got my license in Florida.
It’s a great place to be. I don’t know January 9, I believe and it’s 84 degrees.
Wow. I know back home and Cincinnati it’s about 10 So I don’t know who told me Listen,
give me a call. I got programs for second homes, investment properties, you name it.
513-478-1237 I’m down in sunny Naples, Florida. At a friend’s house Chuck and Randy barns.
Beautiful home beautiful pole. So much beautiful everything. Enjoy your weekend.
Thanks for watching and listening to this video. Give me a call