There was not a lot of action in July as far as fix and flips, but I have worked hard to get them ready to sell. I bought one more fix and flip in July through my direct marketing campaign, but I already discussed that property in June’s fix and flip update. I did not buy any more properties, get any more properties under contract or sell any fix and flips. I didn’t even get any of my 10 fix and flips ready to sell, although I did take one off the market.
Why did I take a fix and flip off the market?
I have had one fix and f lip on the market for a little while that was repaired by the contractor I recently stopped using. I was not really happy with the work done by the contractor, but the house was the cheapest in the area and I figured it would still sell fast. The house has been under contract twice, but both contracts fell apart after the inspection. Both inspections showed a lot wrong with the house and my flips usually need nothing when they are ready to sell.
I could see the low price attracting more contracts, but inspections causing problems over and over. I could have agreed to fix all the problems with the previous contract, which include a new roof, basement structure reinforced, minor plumbing, siding work and a little paint work on the exterior. All this should have been done before it was listed, but my contractor said the roof was fine and would not fix the other items after he sent his guys back multiple times. I became frustrated and decide to put it on the market without doing all the work which was a mistake.
Since there was so much work needed, and the home would look better after the work is complete, I decided to offer to do the minor repairs for the buyers. If they didn’t accept it, I would take the home off the market, make the repairs and raise the price slightly. They did not accept my counter offer to their inspection, and I am using a new contractor to make the repairs on this home. I found a few contractors off Craigslist, and I chose to try the one I liked best for this house.
More contractor news on my rentals and flips
I have decided to stop using the new contractor I found earlier this year, who I thought would be awesome. He made a lot of promises, but in the end he was not living up to what he said he would do and he is more expensive than my other contractors. It took him twice as long to finish the flip he was working on and he came in over budget as well. He said it would be done at the end of July and it is still not done, because he didn’t order the counter tops until he was almost done with the house. The house has sat 95% done for over a week while we wait for those counters to come in. I had him bid jobs on two other fix and flips, and his bids came in at least 50% more than what I was expecting.
As I said, I hired a new contractor I found from Craigslist. I hired a new contractor I found off of Angie’s List who will be starting this week on a fix and flip. Then a couple of weeks ago I had a contractor I used to use years ago contact me. He wanted to quit his high paying management job to get back into contracting so he could spend more time with his family. He will be working on rental property number 11. I now have one contractor who I trust to do great work at a great price and I have three contractors with high hopes of doing great work and doing it quickly. I also have another contractor who is very dependable.
For more information on how to fix and flips homes including how to find properties, how to finance them, how to repair them and how to make the most money fix and flipping, check out my new book Fix and Flip Your Way to Financial Freedom. The book is $7.99 and available at Amazon as a 171 page eBook here. You can also buy a PDF of the book in the InvestFourMore store here.
New video of a finished fix and flip
This fix and flip was not finished in July, but it was just finished this last week. I thought I would include a video of it that I just shot.
Here is the before video of the home.
I have ten fix and flips right now, and I do not plan to buy anymore until I sell one or two. I put the fix and flip I took the video of on the market today and the fix and flip I had on the market should be ready to sell in a week. The fix and flip that is waiting on the counters will be ready to sell in a week or less. Next month I hope to have three properties under contract and more ready to go on the market!