How To Make Big Profits In Flipping A House

Dated: 07/15/2014

Views: 405

I had a client who wanted to repair a fixer himself.  I explained that the sooner you get the home back on the market after repairs the bigger your profits. 
He was the kind of guy who liked to tinker around. The house needed a major face lift. It needed a new kitchen which hadn't been updated in 65 years so you can imagine the look and feel it had.  The stove was definitely an antique and it weighed a ton. No California earthquake could have moved it unless it was an 8+ on the Richter Scale. 
The bathrooms needed to have a major face lift, the yard was dead and the house needed a new roof. You get the picture, it was pretty much a major fixer. 

The owner liked to tinker as I said, but finally after some persuasion he hired a contracted which did save him
 8 months of carrying costs, he got a professional contractor, who was used to fixing bank owned homes and who came in and made homes a showplace.
We were able to save the wooden floors with a good refinish and install a new heating and cooling system and add sprinklers to the yards. 
The whole job including interior paint, appliances, cabinets, pluming and lighting fixtures and HAVC systems ran around $40,000.  All the while during the 6 weeks of construction, the owner only managed to get the garage cleared out so the construction job was definitely above his scope of time or ability.  It's kind of like thinking you can eat 10 plates at a buffet but after you do, you wished you hadn't.
I am so glad he took my advice because he was able to gain a quick $50,000 PROFIT in 2 months by letting  professionals take over. The home sold for over asking price by $26,000 and so at the end of the day. the lesson is that professionals can get the job done quicker and better.
Arna Freedman has years of experience working with investors who like to flip homes and make a good profit. Call if you would like more information.
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Arna Freedman CA BRE#00925320

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