April was a very busy and successful month in my fix and flip business! I now have 7 fix and flips in my inventory and four under contract! I bought two new fix and flips in April, did not sell any fix and flips, did not list any fix and flips, but I did get four new fix and flips under contract! The four new properties under contract do not include one of the properties I bought in April, which actually went under contract in April. I also wrote a few great new articles on fix and flipping in April if you missed them; How much money can you make fix and flipping, How to finance fix and flips, How I determine whether to fix and flip or buy and hold and How to make more money fix and flipping.
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I have also had some serious issues with contractors, and I have had to bring on some new people. Remember to like our Facebook Page to get updates on fix and flips and my rental properties.
Fix and flip purchase #1 in April
The property I bought in April is pictured above and is located in a small town about 15 miles away from me. This property was listed while I was in Mexico on vacation, and I thought I missed out on it the first time it came on the market. It was listed for $80,000 and was actually under contract before it was listed in MLS. I saw it come back on the market a couple weeks after the home was listed, I set up a showing and made an offer that same day for $62,000. The home needed a lot of work and I was hoping to get an offer in before any others were received. I was notified that they had another offer, and the listing agent indicated my offer was much less than the other offer. I decided to up my offer to $80,200 and I they accepted it! It was a no inspection, cash offer with a closing in 15 days.
The house is an older home as you can see and needs a lot of work. A video of the home can be found right here. I received an estimate from my contractor for around $30,000 for new siding, windows, sheet rock, bathroom, hot water heater, roof, doors, floor coverings, trim and much more including taking out a wall. I am hoping to sell the home for around $150,000 once it is fixed up which should leave about a $30,000 profit. This was an estate sale and not an REO or short sale.
Fix and flip purchase #2 in April
The second fix and flip I purchased is located in a small town about 30 miles away from me. This home came on the market with an asking price of $90,000 on a Friday, and I drove to the home that afternoon and submitted an offer for $70,000. The sellers countered my offer at $75,000 the next day and I quickly accepted the counter. I was told they received 4 more offers after my offer was countered and accepted.
This home needs a lot of work as you can see in the picture to the left and the video here: video of Fix and flip purchase 4/28. The home was purchased by investors who hoped to fix and flip it, but did not get the job done and decided to sell it as is. The home needs floors, sheetrock, kitchen, bath, paint, doors, windows and much more. I would not be surprised if it needs $30,000 in work as well. I think this home will be worth at least $150,000 when it is done, if not a little more.
Fix and flip sales in April
I did not sell any fix and flips in April, but I have two set to close the beginning of May. One of them is the fix and flip I did a case study on here.
Fix and flips listed in April
I did not get any fix and flips listed in April either! I was hoping to get one of my fix and flips listed over a month ago, but we have had some serious contractor issues. I was told the fix and flip was done, but upon arrival it was not even close. The contractor had hired a very bad worker who did more sleeping than actual work on the job. He had to have another guy go back and finish the job and redo most of the work. I have since started using two brand new contractors on jobs this month. I have not decided if I will use the contractor that I have been using for years anymore. I had warned him about this worker before and the contractor ignored my warnings. One thing I want to focus on is to get my properties listed and sold much more quickly.
Fix and flips under contract in April
April was a very exciting month for getting fix and flips under contract.
- The first fix and flip I got under contract was the second fix and flip purchase I just discussed in April.
- The next fix and flip I got under contract is a home built in 1875! It needs work and had some boundary issues, but was listed for $119,900 and I think it will be worth $165,000.
- I got another fix and flip under contract which is a REO in a small town 35 miles away. The asking price was $70,000 and I think it will be worth $150,000.
- Another fix and flip was put under contract that was a Wells Fargo REO. The list price was $94,500 and I think it will be worth $160,000.
- I just heard that one of my short sales that has been under contract since 2/17/2014 was just accepted by the bank! This one was listed at $140,000 and I think it will be worth $190,000.
I will give all the details like purchase price on these homes once they are purchased.
It was a very busy month, and if I keep it up I will reach and surpass my goal of selling 15 fix and flips in 2014. I have had no problem finding deals on the MLS lately, even though most people will say it is impossible. I think removing the inspection contingency in my offers has helped me get more properties below market value.
For more information on flipping houses, including how I average over $30,000 profit on each flip, check out my bestselling book Fix and Flip Your Way to Financial Freedom on Amazon. It is available as a paperback or eBook.