Tag: flip a house

The Right Project House for First Time Buyers

Posted on by Bobby Curtis

Right now, when it feels like there is 1 house for every 10 buyers out there, many buyers are having to adjust their expectation in a house. And if they see something they think will meet their needs, they are often writing an offer. Interestingly many of these buyers may have started off with a laundry list of what their needs are. As their offers have been rejected, they have boiled that list down to what their true needs are. In doing that, some buyers are considering houses that have the prime elements they are looking for, and then rely on the future renovation projects they will do to get it the rest of the way there.

Best Bang For Your Buck

Here are my thoughts on what projects new buyers should focus on. Buy something you can move right into (or move in within 60 days). Most traditional loans require buyers move in within 2 months, so find something that is livable. When it comes to projects to take on, consider the things that traditionally increase the value of the house. The kitchen and baths are a great start.

If you’re willing to do more updates, consider something that doesn’t need structural changes, or changes that will require an architect. Pulling in an architect increases costs exponentially. It also usually means city building permits are necessary in order to make those improvements. Many cities are back-logged right now, and might not even be able to look at those plans for 3 months. Stick to surface updates like paint, flooring, and lighting. For a handy person, those are even things you can do yourself. Thoughtfully updating these, along with the kitchen and baths, will typically bring back a high return for what you investment.

More Than Cosmetics

While I recommend generally staying away from houses with structural issues, making updates to the electrical can be easy enough, and is one of the most important upgrades to make when it comes to safety. Do yourself a favor though and hire a licensed electrician. If you find a home you love that has 2 prong outlets, no GFCI protection in kitchen or baths, or has an unsafe electric panel, these are prime for upgrading. Not only will it be safer, it adds modern conveniences. You will need these kinds of upgrades later down the road anyway to make further improvements in the house that you really want. While this electric project could average between $7,500 – $10,000 or more, if you’re buying in a market where the average cost of a house is over $500,000, that doesn’t feel like too much.

Looking for more of a project? Here are some tips for something more extensive: Click Here.

 

Flipping Houses: Interview with Bobby Curtis Part 2

Posted on by Bobby Curtis

Bobby Curtis was recently interviewed on how he finds good houses to flip. Here’s the second part of what he had to say.

1. What are the key financial considerations real estate flippers should think about before they begin a new project?

Make sure you have a reliable financial source that will bring you all the way through the project. Be financially okay to keep the house longer than you need to so you don’t run out of money. Only dip into your own money that you’re willing to lose. I normally don’t recommend using retirement money, or your personal home as collateral.

2. How do you determine a budget when it comes to flipping a property?

First I figure out what work the house needs, and then I figure out what I can buy it for.

A good general rule is that you can purchase a property for 75% of the after repair value (or what you’re going to sell it for) minus the cost of repairs. For example, if I can sell a house for $400,000 after I put $50,000 into it, ($400,000 * 75% – $50,000 = $250,000).

3. Why is project management so important in house flipping?

Timelines, schedules, budgets and great communication with your contractors can make or break how successful your flip is. You or another project manager who has your same interests down to core should be there every day there is work being done. Not all day long, but checking in. I recently took a 5 day trip to Alaska Ain the middle of a project. Even with a crew I’ve worked with for a while, things get handled differently (better) when someone in charge is there to check in, make decisions and overcome challenges.

4. What are some key mistakes that can make house flipping a flop?

Interesting you should ask. I did an interview answering just this question. Click Here.

Here are the nuts and bolts:
A. Putting in materials and finishes that don’t work. Make sure people are already buying houses with the design ideas you are using.
B. Buying a house with no good comparable houses
C. Putting a house up for sale before it’s 100% complete
D. All D-I-Y work
E. Taking too long

5. Anything else to add?

You can only do so much thinking about it and research. If you want to flip houses, you have to get things in place, buy a house and get started. You will learn things along the way. When things get tough, bring in experts in the area you are struggling in. It will be one of the best decisions you make. Miss part 1? Check it out here.

Bobby Curtis
Principle Broker
Licensed in Oregon
Licensed Contractor
CCB# 215071
503-502-3066

Flipping Houses: Interview with Bobby Curtis Part 1

Posted on by Bobby Curtis

Bobby Curtis was recently interviewed on how he finds good houses to flip. Here’s what he had to say.

House flip – stately home in NW Portland

1. How do you find a good flip?

I find a good flip by keeping my eyes and mind open. It’s not just about finding a distressed house that needs work. There are many people out there flipping houses. I’ve discovered I need find something that presents a challenge that other people (flippers) don’t want. And I have to get creative to solve a problem in a way many end buyers will love.

2. What are the key steps to successfully flipping houses?

The key steps are:

A. First, hire a great real estate agent who is an expert in the area you’re looking in, and knows a thing or two about fixer uppers
B. Buy a fixer upper at the right price, and make sure there are good comparable houses for the price you plan to sell if for fixed up.
C. Get solid estimates for the work that needs to be done, and hire dependable contractors to do the work

D. Hire a cost-effective designer, or be one yourself. This is not a time to try out your super specific design ideas. You want something that will appeal to most
E. Get it done, and do it quickly without compromising quality. My goal is 4-8 weeks. If this is your first flip, don’t go over 3 months. Ideally you want to buy the fixer and sell the fixed up house in the same market.
G. And finally, sell it. Don’t nickel and dime the buyer who places their offer. You will often give more than you want to. That’s okay if you’re making enough money on it.

3. What should real estate flippers have in place to make sure the process runs smoothly

A great real estate agent, dependable contractors, a personal support network, and a reliable financial source.

4. What’s your best advice for working with and managing contractors? How do you cut ties with a bad contractor legally?

Very good question. I’m professional, and I hire professionals. That doesn’t mean the best price, because WHEN shit hits the fan, you want to know you can count on them. I hire a mix of contractors who do the work themselves, and larger companies who have crews. Equally as important is I work with people who specialize in fixers, not new construction.

I’m in this for the long haul, and most people who want to get into flipping houses usually want to do more than one. So, if I cut ties with a contractor, I usually give them more than I think they deserve and just agree not to work together again.

Lastly, reputation is important, and frankly you’re very exposed when you flip a house. If they want to make things difficult for you, they can. Most of the time when you want to part ways, they do too. So, shake hands and agree to be done.

Interested in Part 2? Check it out here.

Bobby Curtis
Principle Broker
Licensed in Oregon
Licensed Contractor
CCB# 215071
503-502-3066

 

5 Mistakes to Avoid Before Flipping a House

Posted on by Bobby Curtis

I shared the 5 mistakes to avoid before flipping a house with Tra’Renee from Afternoon Live on Friday. Whether you’re a seasoned house flipper or you’re getting ready to restore your first one, you could probably get a good nugget or two from watching my short interview. Check it out here.

  1. Putting in materials and finishes that don’t work
    1. Find out what finishes are being used for houses selling quickly in the area. Use those.
    2. Consider working with a designer or an experience REALTOR® in this area.
  2. Buying a house to flip with no good comparable houses
    1. Flipping a house shouldn’t feel like a guessing game.
    2. Work with a REALTOR® who can show you there are other houses like the one you want to buy that other buyers have bought for the price you need to sell yours for.
    3. Look for evidence of houses selling for a lot more that are in much better condition. Take surrounding houses into consideration
  3. Putting the house up for sale before it’s 100% complete. One chance to make a good first impression.
    1. There are many houses I have walked into with evidence of work not being complete, door knobs falling off. No matter if that is the only doorknob loose in the house, it will BE the representation of that house.
  4. All DIY
    1. Hire professionals to do the professional work.
  5. Taking too long
    1. You had good intentions to flip the house in 2-3 months, and pretty soon that turned into more work than you thought. 9-12 months later you are ready to list.
    2. A market can shift dramatically in 9-12 months. I like to buy a house, restore it, and sell it in the same market
    3. Taking too long also kills personal morale. Keep that moment going.

 

Interested in more? Learn whether a house makes a good candidate to flip or not to flip here

Bobby Curtis
Principle Broker
Licensed in Oregon
Licensed Contractor
CCB# 215071
503-502-3066

Contractor Tips For Your Next House Remodel

Posted on by Bobby Curtis

If you’re getting ready to remodel your house, or take on a small house project, here are some of my top tips.

  1. Save money and time without compromising quality.
    Some lighting and bath stores have deeply discounted prices at certain times like Rejuvenation which specializes in new , high quality made to look original lighting. Once/quarter: new stuff sometimes 75% off from returned orders, or overstocked stuff. You can also visit online coupon websites and get a home depot promo code to use on your purchase.
  2. Tile stores like Pratt and Larson, Daltile and others have a formal clearance section. Great quality at deeply discounted prices for returned tile, or leftover boxes from a large order. Deeply discounted and high quality.
  3. There are places around town like The Rebuilding Center in North Portland that have great deals on original kitchen and bath fixtures, windows, and doors that came right out of houses in Portland, often times when houses are getting a make-over. Clawfoot tubs aren’t for everyone, so if someone takes it out, and you’re looking to put one it, you can get it for a great price.
  4. Contractor/Designer Discounts. Places like Lowes, HD, the lighting and tile stores I mentioned earlier, almost all of them offer contractor or designer discounts. If you let them know you restore houses, they will give you a contractor rate. Be sure to ask for it before you make purchases.
  5. Worksite/House Stuff: Bring Donuts and Coffee (especially when there are many contractors in a house at once). Most of these guys like to work alone, and you’re a savvy house renovator, so you have a timeline to keep and have several of them working at once. Bring donuts, and start the day off with a smile. It goes such a long way.
  6. Work clean- at the end of everyday, make sure the people you are working with pick up after themselves, remove debris, and take their tools and supplies with them. It allows you to see true progress on the house, and not feel like its constantly a wreck.

For more, check out my interview with Kara from KATU here

Bobby Curtis
Principal Broker
Licensed in Oregon
Living Room Realty &
Licensed Contractor
CCB: 215071
503-502-3066

Like NEW! NE Portland Remodel

Posted on by Bobby Curtis

There’s no house I’d rather renovate than one that’s been in the same family for years. When a house is turned over from one family to the next, with each family comes new ideas, styles, and a new set of renovations. Over time there is often little of the original character left, and what is there is masked by designs from each decade and each new owner.

So when we discovered this 1945 ranch had been owned by the same family since about 1950 and they did not do updates every ten years, we jumped on it.  Added bonus- it was a solid  house and the family maintained it well over all of those years. Here it is: 8603 NE Dyer St, Portland, OR 97220

And here is what we did. Starting from the outside, we knew the roof needed to be replaced, but weren’t anticipating having to remove three layers first. We replaced the roof, and removed the large drop arm awnings and dated barred glass door. Any time I see bars over window and door and large awnings, I always remove them. This is a safe neighborhood, and there was a great solid wood door behind those bars which you really couldn’t see. The awnings, while they kept out some of the heat, they also kept out light which now comes shining through these great midcentury windows.

The living room had rare wooden vaulted ceilings for this era of house. We freshened up the space, replaced the carpet, got rid of the wood paneling from the walls, and added a large, new modern light fixture.  This room now feels completely inviting, and one you want to hang out in.

The dining room was centered in what I would consider the walkway from the front door. We removed the chandelier, added a flush mount modern light fixture, and moved the dining area in front of the window which overlooks Rocky Butte. Under this carpet we discovered white oak hardwood floors. With some sanding and a few coats of polyurethane, they turned out better than new. What you see here is the natural color of the wood. No stain needed.

Oh this kitchen…while cute (and who can resist that horse rocker), it lacked functional space. The refrigerator was in front of the sliding glass door, and kitchen overall needed more storage. We swapped the fridge location and the coffee bar (and built a smaller one), and made room for a new large pantry. We kept and restored the solid wood cabinets and added butcher block counter tops to warm it up. With new appliances and the benefit of a dishwasher, this kitchen functions much better.

The master bedrooms, and all the bedrooms for that matter, are gleaming with the new refinished floors and a fresh coat of paint. These light fixtures were original and in good shape, so of course we kept them. You may notice wall cadet heaters were in all of the rooms. That’s how the house was heated. We opted for a major upgrade with all new ducting and a high efficient furnace. No more electric heat.

The bathroom layout worked, but it felt small and was dark. We brightened it up with white walls and wall tile, added a large mirror and some stylish, bold blue floor tile.

The exterior is one of the highlights of the house. It sits on almost a double lot, with a spacious front, side and back yard. There’s even RV parking for the adventurous spirits. The patio is inviting, and neighborhood is pretty quiet for how busy Portland has become these past several years. This house is solid and beautiful, and ready for the next family. No renovations needed.

If you want to see more of this house, it’s for sale now. Check it out here: 8603 NE Dyer St, Portland, OR 97220 

 

Bobby Curtis
Principal Broker
Licensed in Oregon
Living Room Realty &
Licensed Contractor
CCB: 215071
503-502-3066