So we have an old cow in Rocky Mount, NC. She stands on Bessie Lane.
This is Dan writing, and I just wanted to share that I have been gone for the last week. While I was gone, one of the contractors we use has been very busy work on old Bessie-for a price that we agreed upon up front.
Here, in the photos, is one result. Have we talked about the value of good contractors?
Have a great day.
If you are rehabbing homes, you could put out signs like the one pictured for potential candidates.
Or, you can call the people putting out the signs. Chances are, they are wholesalers -people who sell to rehabbers.
We prefer to call the ugly sign people. We even ask friends to photograph the signs they see and send them to us.
When we run into fellow rehabbers, we offer up what we are looking for, in the event that they are "full" or have too many houses. We like this phone approach to candidates... Much easier than actually joining the ugly sign club.
Eventually we will have signs out there, but they will be different than these.
Check out the Roll Call page to see some updated snaps from Bessie Lane in Rocky Mount. This is one of two houses being transformed.
Unrelated; we have a scheduled closing for Lenoir this coming week. Here's the deal, we already have our contractors pricing the rehab based on the inspection. And, we will not be at the closing table when we close on Lenoir. Why? Because we have automated that process with our lawyer. How?
We put the money for the house in our lawyer's trust fund. We signed a stack of undated signature forms in front of our lawyer so that she can notarize them. Translation, we never even go to the closings.
Check it out! These just arrived. Our marketing just took a small, but potent, leap forward.
To misquote Churchill, "Never, ever, ever, ever, ever underestimate the power of a handwritten thank you note."
So, where will we use these?
"Thank you for closing with us. As cash buyers of real estate, it is always a pleasure..." This could be sent to the owners, realtors, and lawyers at closing. (NC requires a lawyer to close. In other states, it may be the title company people.)
"Thank you for insuring our new property at__________. As cash buyers of vacant and abandoned property, we always enjoy..." Insurance agents usually know about vacant properties due to policy requirements.
"Thank you for taking the time to speak to me about your house/condo/trailer/land/go-cart track/golf course at_____. It's always a pleasure to... As you know, you can call me anytime with any questions or..."
Thank you for reading this.
Just like contractors, it is always a good idea to get multiple home inspectors to quote a rate for a home inspection. And not using a home inspector may be the most expensive four or five hundred bucks one ever saves.
We liken those who do not have their homes inspected to those who never go to the doctor while suffering from ailing health. "Well, it might be my diet." Ok, Doctor Feelgood, good to see that those high school shop classes included a full medical degree. What the...
At any rate, there are a few ways that this can go down for someone buying a property to rehab. One way involves property picked up from MLS. In this scenario, we always write our offers SUBJECT TO INSPECTION. Usually the buyer is accepting our offer due to wanting a fast closing and cash. So, we try to get the inspection done within the first couple of business days of being under the contract. (Another reason to become familiar with multiple home inspectors.)
A second scenario is when a property is picked up at auction. Sometimes an auction will have enough time on the clock to land a walk-through. Other times, it may be a neighborhood visit only. Sometimes neither. If we are the winning bidders, we still schedule an inspection almost immediately after being notified of our win. This is where having a good Realtor comes in handy. We line this up through him or her and never deal directly with the inspector.
A third scenario is a wholesaler will call with a home to sell. Okay, now it comes down to negotiation. Meet the price, but contingent upon inspection. No inspection, but a lower price. There are a thousand ways to play that game. However, even if we buy without the inspection we will still schedule an inspection for after the close.
Why? Why inspect?
In all three scenarios, the inspection report is usually the bare minimum that needs to be completed in order to sell. But not always. We once flipped a home with shingles that were reported as in need of immediate replacement. We left them on and still sold the home for more than the asking price. However, usually, one has to belly up to the bar and get the basics done before he or she can do anything else. So, for $400 to $500 (prices may vary in other areas) one gets a scope of minimum work to complete. Sounds like a bargain to us.
Also, in the auction scenario, the auction house is going to charge a registration fee of $2,500 or more. This fee is lost if one walks away from the agreement. (Read the auction policy and procedure information carefully -every auction company is slightly different.) Walking away at $2,500 may be the more prudent action if the inspection reveals something of epic proportions and the project is a loser. We chalk this up to the cost of doing business.
Avoiding inspections can and will cost multiple of thousands of dollars. Our best advice is to ALWAYS insist on an inspection. And, again, get multiple bids. It is easy to be lazy, but it is also expensive. Knowing the rates and reputations of multiple home inspectors in one's area gives the upper hand in crunch time. This is a way to make money. We heard a story on one of the Podcasts that we listen to of a guy who got two bids on roofing. The bids came in at approximately $500 apart. The guy then called a third roofer and the bid was multiple thousands lower. He found out later that the two biggest roofing companies in his town are owned by the same family. Laziness could have cost him big time. Inspectors will not be thousands of dollars different, but they may be leagues apart when it comes to giving a comprehensive report. Also, like all people, inspectors may be on vacation, or unable to attend a party at 123 Any Street when summoned.
Don't be lazy. Be smart and better off.
Thanks for reading. Please feel free to comment on these posts. We welcome your input.
We spoke about this in an earlier Crew Notes email. But because we have some new people among us, & the fact that the blog is new, we will repeat this QUICK TIP.
We market directly to Realtors with custom postcards that we picked up for next to nothing from www.gotprint.com
Our intention is to get the realtors that are selling rehab houses to call us before listing the homes or taking the houses to auctions.
We will follow up with other marketing "touches" as we go along. We put the realtors in our database for mailings and emails. Like any business, it is important to stay in front of the people that can bring us business... Wholesalers, neighbors, friends, and realtors.
Hi. This is Dan from Box Bend Crew. Welcome to the first installment of the Crew Notes. Thank you for being here.
Our intention is to illustrate exactly what we do, why we do it, and what the results are -the good, the bad, the ugly. Box Bend LLC was started when we looked at legitimizing our house flipping business. Box Bend Crew is the continuation of this journey, and resulted when friends asked for some information on what it is that we are doing. We hope that you enjoy it.
We do not guarantee results, or even that this is the best way to make money in real estate. This is the method that we are currently using. Like every investment, we expect loss from time to time.
We will be "monetizing" this site in order to cover some of the expenses of a website, hosting, etc. We will do this in a couple of ways including through Amazon. We are appreciative of any orders that you place through us. It helps support the site. To start off, there are two books that we recommend, and you can find them in the right hand column.
Finally, please do not share the website password with anyone.
Happy House Hunting,
Please check out our main site: WWW.BOXBEND.COM
This site is for informational purposes only. We do not guarantee anyone's performance in the house flipping, or transformation, or investment arena of real estate. Invest in your own ideas and projects at your own risk.