Homework Pays Off

The past few weeks have been a pretty big blur of the daily investing grind…but a few fabulous happenings stand out in my mind. After only 10 hours on the MLS, Flip #13 got multiple offers and we put it under contract for OVER list price! That's fabulous happening #1. :)

Flip #13:

(For a video featuring this property, click here!)

Fabulous happening #2 occurred when the bank accepted our offer on Flip #15! Eeeekkkk!! We were scouring the market for deals & putting in offers but nothing wanted to stick. We actually lost Flip #15 to another bidder originally - but they walked away from the deal after their inspection showed pretty bad foundation issues. Lucky for us, we already had inspected the property ourselves as well as getting our contractor's opinion of the foundation issues - and submitted our offer free of an inspection contingency. We knew how to repair it as well as the cost - so when the bank came back to us with the deal, we took it and ran! It pays to do your homework, people!

Our most recent purchase, Flip #15 :)

Lastly, and even more recently, more fabulousness occurred when we got Flips #12 & #14 under contract - within just a few days of each other...Several paydays are heading our way and we couldn't be more thrilled!!

Flip #12:

Flip #14:

(For videos of these properties, click here & here :))

We are currently scouring the market for Flip #16 and have our eye on 1 property in particular. Our offer won't be reviewed for another few days but as of this writing, we are the top, and only, bidder. While we were at the property contemplating what our offer would be, we discovered the world's largest elephant ear plant..hehe. I couldn't help but snap a few photos of this beast!

Fingers crossed these elephant ears will be our's...and so will the huge payoff that comes along with them!!!

Lessons Learned

This summer has been fun, busy, crazy, and lesson-filled. We currently have 4 flip properties - selling 1, listing 1, and finishing up the other 2. It's been interesting having this many properties at once, with each one being in a different stage. Learning to juggle accounting, shopping, hiring, scheduling, ordering, communicating, etc. has become even more important. We've gotten pretty good at it! But, one of the main lessons we had to re-learn is in this business is you have to be prepared to deal with people who don't stand by their word. Most people are looking out for themselves - even if it's not in their best interest. It just happens to be the easiest way to a payday. Nevermind all those conversations had and promises made. Even by those you've hired several times in the past...

For instance, one contractor - we'll call him John - was hired by us to fix up one of our properties. Now, John is known for being slow, unreliable, messy, and unorganized - but his prices worked in our budget and we had used him on a few properties in the past. We knew his weaknesses and felt like we could work with him if we broke the project down into chunks instead of handing him the whole job without supervision (he had issues with details and task completion). Now, John came up with the complete date, the price, and the timeline of tasks. At completion of the project, his excuses were endless as to why he shouldn't be penalized ($50/day past completion date...again, agreed to by him). The rain, his children, his subcontractors, his bank account...I could keep going. But I'll spare you. All excuses we had heard 1,000 times in the past. He could not grasp why we would hold him to the contract. He fully expected us to give him pass after pass. This is after we found out he had been sleeping at the job site with his wife and child...among other things. Long story short, his wife called (yes, can you believe it??) and needed to be informed as to why his check was short. After having a conversation (with her crying most of the way through it after realizing her husband was lying to her), we got off the phone exhausted, bewildered, perplexed, frustrated, and extremely amused that THAT experience actually happened...And remember, this was just the short version. Just believe me when I say the whole experience was exhausting from start to finish...

But, I'm reminded that is not the only attitude we've dealt with this summer. Another contractor we have used on many occasions thanked us for some recent work we had given him. He was struggling a bit in his business and our "job came at a much needed time." Now, this man is educated, hard-working, knowledgeable, and dependable. Working with him is always a pleasure...getting a "thank you" was just a bonus. Those positive experiences remind us  to not dwell on negative experiences for too long. We always need to learn from them and use them to help grow our business into a thriving, profitable enterprise.

Speaking of growing our business, here's a pic of Flip #12...She's going on the market this week! She's come a long way from the day we bought her off our truck magnet sign. And to think...we are projecting a profit of 5 figures from this deal. Well played, truck magnet. Well played. :)

Before & After...

 

 

Geek Squad Alert!

PA, LLC recently got some fun new tech equipment that we are stoked about! We have been hobbling along on a scanner/printer that only sometimes worked and a desktop PC that constantly gave us fits sooooo...we are the proud new owners of 2 laptops and an amazing HP wireless printer/scanner to which you can EMAIL - yes, email documents to be printed!! We hate spending money but realized our office equipment needs to "grow" as our company does - and we can't afford to not have equipment capable of doing things quickly and effortlessly. I've also recently starting doing our accounting online too which has helped save me loads of time...Dave and I wear so many different "hats" within our company so it's been extremely nice not having to spend time fighting with computer equipment. Moving on and up!

 

Speaking of moving on and up, our offer on Snow Road (Flip #14) was accepted! So fun to see our offers getting accepted and our inventory increasing! Check her out :) She's pretty beat up now but we see a diamond in the rough that will make an amazing home for someone...

 

 

This week we are finishing up "punch-out" on Pinebough (Flip #11)...touching up paint, staining porches, installing shutters, cleaning, staging, etc. The punch out on this property should really be called fixing-items-a-contractor-has-already-been-paid-to-do-but-either-did-a-crappy-job-or-left-it-off-altogether. *Sigh* What I would give for a quality job done right. Don't get me wrong, we have a handful of guys that do their job and do it well (shout-out to Daycool and ProStone!). But, we have yet to find a general contractor that can deliver a product that doesn't need a serious overhaul when they leave. We have been trying out a few different methods to see how we can improve in this area. We'll see how our beta tests pan out ;) 

Flip #13 Revealed!

Hey guys and gals! I'm back to share some fun stuff...

So, you know we've been putting in offers lately, right? Well, yesterday we heard the fantastic news that one of our offers was accepted! Check out Flip #13...booyah!

This one should be a breeze...doesn't need too much work AND it's located in our favorite "flipping" zip code! I wish they were all this fabulous.

Pinebough (Flip #11) is moving along nicely. I don't have any recent pics but I'll try to snag some next time I'm there. We still have a few weeks of renovations left on that one but should have it listed by early summer...so yay!

Brookline (Flip #12) is still waiting to close but we should be going to sign papers on it in the next few days. Demo will start next week and then it will be "off to the races"!

Great things are happening. It makes me feel encouraged in our commitment and motivated to keep up our momentum. I read something today..."You don't have to know the entire way, you only need to know where you want to reach, and start your journey. Go as far as you can see, and when you get there, you will be able to see further."...

Just Do SOMETHING!

A few years back my partner-in-crime and I signed up for a "Rich Dad, Poor Dad" conference planning to learn a bit about business management (David was working on growing his metal art & fabrication business - he's an amazing welder, fabricator, and art sculptor in addition to all of his other talents!). Surprisingly, we learned very little about business management (man, were we frustrated, ha!) but a whole lot about real estate investing. We always had an interest in investing (so not all was lost!) but really never knew where to start. At this same conference were two wholesalers out of Pensacola who happened to close a deal with a $40,000 paycheck while we were there. Obviously, this intrigued us - so we sat at their table and asked them as many questions as possible pertaining to how they had become so successful. One of their main points was to join a real estate investors association for education and networking opportunities...

After the conference weekend came to a close, we started researching for a local association we could be a part of...Low and behold, we discovered Port City Real Estate Investors Association! We started going to the meetings and met the association Founder who just so happened to have started a mentoring program. This was just what we needed! We signed up with him and jumped right in with both feet.

Fast forward to now...We are about to purchase our 12th flip and are working towards flipping 5 properties at one time. If someone had told us at that conference we would both be self-employed full-time real estate investors in just a few years, I would have laughed and thought they were crazy! I'm forever grateful to those wholesalers who told us where to go to find active investors in our area who could steer us in the right direction. They helped change my life!

All of this to say, I feel an obligation to "pay it forward" to someone who might need some direction. Research for a local REIA group you could be a part of to learn more about investing...AND, if you happen to be in my city, check out Port City REIA! See below for a few pics from the REIA meeting we actually had last night. David and I were on an open forum panel where we (more so Dave - public speaking terrifies me! I DID showcase our new "Phoenix Avenue LLC" t-shirts though, ha!) had the opportunity to talk about our flipping business and where we see the market heading. Afterwards, we met some great folks and got a few leads on some potential deals...See why networking is so important??

So get involved. Get moving. Just do SOMETHING. Make active steps to change your future. Trust me, you won't regret it!

PS - I "borrowed" these pics from Port City REIA's facebook page...check 'em out!

Great turnout!

Dave sharing his thoughts...

Notice my new marketing gear? PA, LLC t-shirt, baby!

Networking time!

More networking...

Truck Magnet Marketing...

Remember a few posts back when I mentioned amping up our marketing with t-shirts, iPhone covers, new business cards, and truck magnets? Well, our efforts have paid off! Lemme back up and fill you in on HOW...

On the day we were staging Cottage Grove (#10) we loaded up in our truck and headed off to the local Uhaul to rent a truck for the day. As we were at the counter paying, a man came in who had noticed our "We Buy Houses" truck magnets and asked if we were still buying homes. He mentioned a property he needed to sell. We exchanged cards and scheduled a time to meet him there.

After meeting at the property, David and I came up with repair numbers, ARV (after repair value), took pictures, and told the seller we'd be in touch. A lot of negotiation and comp (comparable sales) research later, we were able to agree on a price we could all live with. Yesterday we locked up the property by signing an Agreement to Purchase contract and are planning on closing in the next 2 weeks! Our lenders were happy due to the fact that we are rolling their self directed IRA right into another investment property, the seller was happy because he can finally walk away from the property, and we are happy because we stand to make 5 figures off this deal!

All of this has reminded us how important it is to continuously market for deals even though we usually buy from a wholesaler who has a steady stream of inventory...Our $15.00 truck magnet has MORE than paid for itself ;) We are driving all over the city on a daily basis anyway so why not do a little marketing while we are at it??

Here is a picture of the property, now Flip #12...take a good look because you won't recognize it when we're done!

Say hello to Flip #12!

Closings, Closings, & More Closings!

Hey y'all, I got news to share! We closed on The Beauty on May 1st!!! I can't tell you how happy we are to no longer have this property - and get all that capital back out to reinvest. What a relief to know our oldest purchase, largest renovation, and most expensive property to date off is now off our back. Whew! Feels good! Sooooo adios, Demouy! It's been real!

Adios old friend!

More great news... Deerwood (#9) is now under contract and will close May 9th!

Even MORE great news...Cottage Grove (#10) sat on the market a mere 7 days before receiving multiple offers and went under contract at $7,500 over list price! We are supposed to close May 20th if all goes as planned.

So, all 3 of our properties will close this month. I never thought I'd be so happy to see May in all my life! ;) This will allow us to set up a 6 month money reserve for living expenses as well as throw some money at our credit card and loan debt. It's been a long time coming! We are finally at the point David and I have worked toward for the past 3 years. We are excited to be able to start paying OFF debt instead of just paying it ever-so-slowly DOWN. Once this is happens, it will allow us to start actively growing a home fund...The rental we have lived in for 2 years is tiny (700 sf), needs so much work and is in an area of town that we really want to get out of. It has been tempting to go try for a mortgage so we can live in a "home" again - but every time we talk about it, David and I realize we need to stick to our plan. We will buy a home when we have the cash in hand. We are working on staying focused..."live like no one else now so we can live like no one else later".

Here's a few pics of finished and staged Deerwood and Cottage Grove:

Deerwood (#9)...

Cottage Grove (#10)...

To see the complete "After" albums, go to our Facebook page by clicking here!

And THIS gal is Flip #11! We are purchasing her the first of next week and will start renovations immediately! We are hoping to buy 4 more flips over the next few weeks and REALLY start busting them out. Big goals require massive action! Here we goooo!

Branding & Marketing Fun!

Many delightful (and some really stressful) happenings have occurred since my last post! I have been neglecting our blog and realized it has been 2 months since my last post...a lifetime ago in our crazy busy world! Shame on me.

Well, where do I begin?? The past few months have been incredibly challenging and we just recently have been able to take a breath. Sugar Pine closing dragged out for 7 weeks - wayyyy past schedule. We were in a "don't buy anything unless you absolutely have to" kind of situation. Scary and stressful. This all occurred while trying to wrap up Deerwood and maintain Demouy (which we all know enjoys taking money :)). Frustrating trying to finish out a property when you're broke! Long story short, we managed to get Sugar Pine to the closing table, finish Deerwood out, purchase flip #10 (Cottage Grove), and get The Beauty under contract! We are now in the delightful place of managing the contractors working on Cottage Grove and keeping our listed properties looking fresh and clean...

Since recently our efforts have shifted from the manual work side of this business to more of the management side, we are excited to be putting our energy into marketing, branding, and finding deals! Like our new logo? Just ordered t-shirts, car magnets, business cards, and cell phone covers. Can't wait to start using our new gear!

We are hoping to be listing Cottage Grove at the end of this month...only 4 weeks after purchase. Ready to start burning through all of them this quickly and closing deals on a monthly basis...Here's a before pic of our most recent purchase!
 

 

New Year, New Experiences

The end of 2012 brought with it a tornado on Christmas Day. A tornado that destroyed hundreds of thousands of dollars in real estate in midtown Mobile.  A tornado that happened to make its debut while we were enjoying a wonderful break in Houston celebrating the holidays with my family. Demouy, a.k.a The Beast turned Beauty, is located in midtown Mobile and encompasses nearly all of our business capital. The tornado touched down literally FEET from our doorstep. Upon returning from Houston, we saw one street over where houses had their entire roof ripped off. Driving around our block, we saw huge sections of houses missing and debris piled high up on the side of the road. But a Christmas miracle happened...we were spared! We had some debris to clean up in the yard (random breaker box wrapped around our tree and tons of small limbs, roofing material from our neighbors, etc.) and off the roof (including a random 2x4??!). One of our windows was cracked from what appeared to be a shingle from the high school tile roof one block over. Aside from this, we weren't affected! Even the pillows in the front porch staging furniture didn't fly away! We feel very blessed and so relieved!

With this behind us, we have hit the ground running in 2013, including securing our 10th flip that we will sign papers on when Sugar Pine closes (Jan. 25th). We are about to reach DOUBLE digits...What a victory!

We are still working on Deerwood (see pics below!) and have taken on the challenge of staging The Beauty. We are hoping this will help get an offer. Once this property is liquidated, we plan on buying 2-3 more with that capital. The last 3 days have been spent hitting up every furniture, consignment, thrift, and decor store all over the city. We are on a major budget so it hasn't been the easiest task to furnish a 2200 square foot house that happens to be listed at nearly 1/4 of a million dollars...but we have found some great items! Pics coming soon!

I am looking forward to a wonderful year. Last year had many struggles trying to figure out how to manage time, finances, and relationships while trying to build a business that could support us financially. We mastered a few areas and are still working on some others. We sacrificed a great deal but feel accomplished after making it through our first year as full time real estate investors...with our marriage and sanity intact! 2013 is full of hope and we are excited to build on our experience from last year and hopefully pocket some serious dough this year! We want to pay of all our of credit card debt and buy a home for us...CASH. No bank loans. No financing. Pure financial freedom. Too big of a goal, you say? Impossible to do, you say? I believe in it. I'm committed to it. I'm excited for it.

Bring on 2013.

Master bath.

Finished wood flooring.

Hall bath.

Dave getting it done in la cocina!

The beginning of Dave's mantel masterpiece.

Another view of the master bath.

Ready for baseboards!

Master bedroom. Carpet to be installed.