Flip That House

Sorry for not posting in over a week, but when you are busy making money, sometimes you have to focus on the prize. But it looks like we are going to Flip That House on Polk Street as we (I and the bank) came to an agreement yesterday on the house on Polk. Unfortunately, I didn’t get it for what I was wanting to purchase it for, but it should still be a good deal. It took over month of back and forth negotiating but it finally came together.

We agreed to purchase the property for $134,000, close in 15 days and start putting it into shape to sell. Apparently the bank had gotten another offer that was higher than mine. I know what you’re thinking - I’m always suspicious too when they say they have another offer. But this time they really did as it came in through my realtor’s office, so she knew. I suppose she could be blowing smoke up my skirt but I don’t think so. At some point you have to trust the people closest to you. But $134K is a lot better than the $279K they originally listed it at.

I think that the fact that another offer did come in actually helped to get the bank off the dime. While it was higher than my original offers, it was still well below what they were originally trying to get for the property. So it demonstrated that I wasn’t that far out in the weeds and what I was saying was credible.

I went over the budget for the rehab costs and identified a few places where I can trim some of the budget. I’ll have to cut a few of the finer things but I think it can be done and still have a prime example of how to rehab a house and flip it for the most profit.

Also, the lender I usually use is getting squirrely in this crazy market and they have made a demand for a 10% down payment from me. So I decided to bring in a private lender partner to provide the down payment and some of the rehab costs. I prefer to not put any of my own money in these deals if I don’t have to. But with the private lender as a partner, we can still make some money and if needed, we will have a source for money if we decide to put back some of the items that I am now cutting out of the budget. It’s is better to make a percentage of something than 100% of nothing which is what it might have been if I didn’t bring them in. I just have to make sure that the overall costs stay within reason so as to make the most profit we can on this - and that is my job. You make your money when you buy, keep your money when you do the rehab and realize your money when you sell.

I’ll put together some new budget numbers and show them to you as soon as I can. Keep visiting www.FlipThatHouseWebsite.com