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 Source | Leads This Week | Notes |
|---|---|---|
| Bandit Signs | 0 | Been over a month since some went up. |
| Yellow Pages | 1 | For a picture of my ad, visit the ‘The First Week’ post. |
| Buying Website | 5 | For a link to my site, visit the ‘The First Week’ post. |
| Drive For Dollars | 0 | Been a while. |
| Wholesale Deals | 0 | Made Offer |
| Absentee Owner Mailing | 0 | Have not mailed in a while. |
| Probate | 0 | Have not mailed for several weeks. |
| Craigslist | 0 | Just a basic ad saying we buy houses. |
| Referral | 1 | Word 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 Source | Total Leads To Date | Put Under Contract |
|---|---|---|
| Buying Website: | 253 | 7 |
| Bandit Signs: | 64 | 2 |
| Yellow Pages Ad: | 52 | |
| Absentee Owners: | 29 | 1 |
| Driving For Dollars: | 18 | |
| Probate Letters: | 11 | 1 |
| Wholesalers: | 12 | |
| REO Realtors: | 7 | |
| Referrals: | 9 | |
| Realtors: | 3 | |
| Craigslist: | 2 | |
| MLS Search: | 2 | |
| For Sale By Owner: | 1 |
Leads Analyzed
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.
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.
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.
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.
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.
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.
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
Please ReTweet and Like this post because it’s the nice thing to do and I truly appreciate it.
-Danny
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.
Next: Follow Along As I Open Up My House Flipping Business
Comments (21)
Love those numbers Danny! Congrats.
Thanks. I love them too.
Could you tell me who did your website ? I need one badly.
I created the website myself as I was a software developer before flipping houses. There are some free templates out there. Just stay away from flash-based websites as it can be harder to rank in the search engines.
Nice. Do you buy your probate leads, or do you do the research at the courthouse?
Hey, Mike.
I pay someone to pull them for me.
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
Don,
Was finally able to check out your site. I wanted to make sure I had some time to really look it over.
First, I think the site is to the point as it should be. But…the point does not stand out as much as it should. It just seems like there is too much going on as most of the text is similar. Your headline should stand out and draw the eye right away. You are using mainly blue and so why not have your headline in a bigger, bolder font and maybe bright red (not too bright as too not ‘gel’ with the rest of your site).
I think your site would also benefit a lot from adding padding, margins and outlines to your paragraphs and sections. This will help separate them out a little more. Maybe add a big arrow pointing to your form so that people know immediately where they need to enter their info.
Hope this helps. It will take some work, but once you get it right, you will know it.
My site is actually on its third complete revision.
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.
Nice updates. Another thing that might or might not be an issue are the pictures that you have of the houses. Every one of those houses is a complete and utter piece of junk. It’s good to have a picture of a house needing work, but most of the houses you will be buying will not look like that. Maybe try to swap out some of those with some that just look a little neglected.
You might also consider adding your name in a couple places. “Call Don Now” Something to help make it more personal. Something that says you are somebody that will help them personally so the appearance is not of some big company that will come in and strong arm them.
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
Thanks, Demian.
I saw this comment and thought you were talking to me. I just spent the last 5 minutes trying to figure out where the misspelling was. 🙂
Thanks for helping take a look at Don’s site.
Danny
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!
Thirty Second Week – Another Flip Complete – Flipping Junkie – For Those Addicted to House Flipping
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