Profit From House Flip

Thirty Second Week – Another Flip Complete

Danny Johnson / 13 comments

Here is what happened during the Thirty Second week of documenting our flipping houses business on this blog. If you missed the first post explaining what I am doing, please visit this page: See How We Are Flipping Houses.

These are the things I did this week:

Def Leppard House Final Flip Numbers Posted

The final costs and profit has been posted for the Def Leppard House. We closed last Friday. See how the stupid FHA 90 day flip rule cost of thousands of dollars, yet again. Not that big of a deal though, we still made out really well on this one.

See the post flip numbers here.

Closing on the Audi House

Closing on the Audi house this morning. I have not posted info on it yet because I decided to wholesale it. The first person to see it is buying it…cash…as-is…fast. Worked out great. I will post the numbers this coming week after all is finalized.

Rehabs Going Well

The rehabs at the Honk Your Horn house, the Perp house and the Flatulent house are going well. The Flatulent house got its garage converted back from a den. It now has a two car garage again. We can’t stand garage conversions. Some people like the extra space, but I think most people (especially the guys) would rather have the garage. The new contractors have been great so far and have done everything as agreed.

Got Some More Probates Leads

Got 100 more probate leads and will be mailing letters to them this week. Our family friend that is doing the letters is also preparing a repeat mailing for the addresses we already had.

More Mailings Likely

If I find myself twiddling my thumbs this week, I will put together another absentee owner mailing. Need to get the leads coming in again in force. Things have slowed a little with our preoccupation with the move.

Marketing

Total Motivated Seller Leads This Week: 7

Lead SourceLeads This WeekNotes
Bandit Signs0Been over a month since some went up.
Yellow Pages1For a picture of my ad, visit the ‘The First Week’ post.
Buying Website5For a link to my site, visit the ‘The First Week’ post.
Drive For Dollars0Been a while.
Wholesale Deals0Made Offer
Absentee Owner Mailing0Have not mailed in a while.
Probate0Have not mailed for several weeks.
Craigslist0Just a basic ad saying we buy houses.
Referral1Word of mouth. FREE

Total Leads To Date [463] Deals Under Contract To Date [11]

‘to date’ means from when I started keeping track of this information on this blog (late March 2011) to the present.
This is the total number of leads for each source and the number of deals put under contract from each lead source.

Lead SourceTotal Leads To Date  Put Under Contract
Buying Website:2537
Bandit Signs:642
Yellow Pages Ad:52
Absentee Owners:291
Driving For Dollars:18
Probate Letters:111
Wholesalers:12
REO Realtors:7
Referrals:9
Realtors:3
Craigslist:2
MLS Search:2
For Sale By Owner:1

Leads Analyzed

  1. Recently Widowed

    [Source: Website]

    Homeowner wants to sell a 3 bedroom, 1.5 bath, 1200 sf house outside of town.

    Here are the numbers:

    Asking Price:$45,000
    Amount Owed:$17,000
    Repairs:Everything (unconfirmed)
    After Repaired Value:Maybe $75,000
    Max Offer:$45,000 – repairs

    Homeowner was recently widowed and cannot afford the house anymore. This house is about 1.5 hrs from me. The house is completely run down and needs everything. It is on 4 acres though.

    It’s just too far so I birddogged it.

  2. Outgrown House

    [Source: Website]

    Homeowner wants to sell a 3 bedroom, 2 bath, 1200 sf house in a so-so neighborhood.

    Here are the numbers:

    Asking Price:$89,000
    Amount Owed:$126,000
    Repairs:cosmetics (unconfirmed)
    After Repaired Value:$80,000
    Max Offer:$50,000 – repairs

    This situation is a tough one. The neighborhood has been hit hard with foreclosures and values have dropped significantly. Houses are only 5 years old. You can see what happens when you look at what is owed versus what the current ARV is. Ouch.

  3. Divorce

    [Source: Website]

    Homeowner wants to sell a 3 bedroom, 1 bath, 1000 sf house in a good neighborhood.

    Here are the numbers:

    Asking Price:$89,000
    Amount Owed:$0
    Repairs:cosmetics ($6k)
    After Repaired Value:$90,000
    Max Offer:$58,000 – $6,000 = $52,000

    Divorced and need to sell this house. They owe nothing but are asking what it is worth.

    I went to see this house and made an offer of $50,000. They are considering it. Didn’t seem real thrilled.

  4. Inherited and Need To Sell

    [Source: Website]

    Homeowner wants to sell a 1 bedroom, 1 bath, 700 sf house in a bad neighborhood.

    Here are the numbers:

    Asking Price:$30,000
    Amount Owed:$0
    Repairs:Everything (unconfirmed)
    After Repaired Value:$45,000
    Max Offer:$20,000 – repairs

    Inherited the house and needs to sell it because he can’t afford to do anything with it. It just doesn’t fit what I am doing right now and I hate the area. Birddogged.

  5. Guardianship Sale

    [Source: Referral]

    Guardian wants to sell a 2 bedroom, 1 bath, 800 sf house in a bad neighborhood.

    Here are the numbers:

    Asking Price:$30,000
    Amount Owed:$25,000
    Repairs:quite a bit (unconfirmed)
    After Repaired Value:$40,000
    Max Offer:$15,000 – repairs

    An attorney that is a guardian of a homeowner is trying to help sell their property. It is in a bad part of town and has a tenant that is not paying rent and has trashed the place. Not my cup of tea.

  6. Moving Out Of Town

    [Source: Website]

    Homeowner wants to sell a 3 bedroom, 2 bath, 1000 sf house in a good neighborhood.

    Here are the numbers:

    Asking Price:Make An Offer
    Amount Owed:$60,000
    Repairs:bathroom and cosmetics (unconfirmed)
    After Repaired Value:$80,000
    Max Offer:$52,000 – repairs

    Moving out of town and wants to sell fast. The house also has a converted garage, something I don’t ever like. Too much is owed.

  7. Facing Foreclosure

    [Source: Yellow Pages]

    Homeowner wants to sell a 2 bedroom, 1 bath, 900 sf house in a bad neighborhood.

    Here are the numbers:

    Asking Price:Make An Offer
    Amount Owed:$6,000 back taxes plus mortgage
    Repairs:a lot (unconfirmed)
    After Repaired Value:$50,000
    Max Offer:$25,000 – repairs

    Sounded very motivated but did not tell me everything that is owed. This area is rough and I am just not interested. Passed it on to a buddy.

Summary

Leads have slowed down a lot. Made a couple offers this week but they don’t seem very promising. Time was spent focusing on the rehabs and still getting settled at the new house. My mind keeps wanting to start focusing on more marketing and I need to find the right balance. It can be difficult to rehab 3-4 properties and keep the marketing going.

Plans For Next Week

  • Get some probate letters out.
  • Mail some more postcards.
  • Manage rehabs.
  • Work at wholesaling a couple houses.
  • Follow up on old leads.

Please ReTweet and Like this post because it’s the nice thing to do and I truly appreciate it.

-Danny

Bonus: Click Here to Download My Top 5 Motivated Seller Marketing Methods Guide pdf that will show you, in awesome detail how to use 5 different marketing methods to generate great leads consistently.

“Don’t be afraid to give up the good to go for the great.” – John D Rockefeller

Thank you for following along with us on our adventures in flipping houses. We hope you are enjoying it and that it is helping you to learn how to flip houses or improve your house flipping business, whatever the case may be.

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13 awesome responses to “Thirty Second Week – Another Flip Complete”

  1. clayton on

    Could you tell me who did your website ? I need one badly.

  2. Mike G on

    Nice. Do you buy your probate leads, or do you do the research at the courthouse?

  3. Don on

    Danny,
    I really like the information you have here, and you have inspired me to finish my own web site for getting leads. I’ve had the framework for months, but now I am finishing it up. I just deployed it and would appreciate any advice you can give me (that goes for your readers also).

    I am just testing it now, so you can even enter data and submit it.

    It has an admin tab (which I will eventually remove) that takes you to a page that shows all the leads. You do have to login:
    User: testadmin
    Password: testadmin

    (Of course, I will remove this account when it is finished)

    This admin page is ugly – I have not formatted it and there is no navigation, but you can see that your entry was submitted.

    I hope to finish this up by the end of the week. I have a few minor changes and I am going to add SSL. Feel free to critique the look and feel, by wording, my grammar, or anything.

    I look forward to your comments and advice. (and maybe some SEO tips)

    Here is the URL:
    http://sellmyhouseinwarnerrobins.com/

    Thanks,
    Don

  4. Don on

    Thanks for your input.
    I have taken your advice and made the appropriate changes. If you get a chance please let me know what you think.

  5. Demian on

    Don,

    I noticed a spelling error on your website. After clicking on “The Process” tab, the error is in the heading “Pick A Closing Data”. Should be “Date”.

    Good luck with the website. I will eventually get one up myself. Thanks for posting yours for us to check out. In my novice opinion, it looks good.

    Demian

  6. Bailey on

    Don,

    I have some suggestions for you as well, and I hope you’re still reading the comments for this post.

    1. Increase the font for your phone number. This is the most important thing on your site, and it has the smallest font.

    2. Your Contact Us link goes to your About page. Most people expect and want a contact page to take them to a Contact us page. You can copy and paste the About page and save it as the contact us page.

    That page should have your: email address, phone number, and mailing address and fax number if you have one. nothing else.

    3. Add the link to the Contact Us page to the top of the site as well. I couldn’t find it until I went to the bottom.

    4. Also, you may want to consider a separate website for the investors. If I were a seller, I’d be distracted by that.

    The color is nice and soothing. Good job!