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Realtor's perspective on finding a good fix and flip property

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  • 1. Introductions How to Find and Evaluate a Good Fix and Flip Property. How to develop a successful relationship with your realtor? Q & A Thank You

2. Location , Location, Location Corner lot, busy intersection, near commercial, apartments Know your Schools API (Academic Performance Index) Scores based on 1000 points. i.e Cupertino 900+ What drives people to the community? Is it schools, charming downtown, community spirit, larger lots? Know the style of the neighborhood and community. Are you planning a contemporary style home in a Mediterranean or traditional neighborhood? 3. Tear Down New construction potential to be best home on the block or are there other newly built homes within a mile radius? Time involved in building; what will the market be like when project is completed? Remodel Quick turnaround and better opportunity to time hot market or does project extend beyond completion date because of many unknowns that require more work and expense. Vacant Land How much additional costs involved vs. tear down or remodel, plus time? 4. 2431 Plummer Ave., San Jose $674,000.00 Sold 02/08/2012 2431 Plummer Ave., San Jose Work in progress! 5. 1931 Cabana Drive, San Jose Sold - $820,000.00 3/31/2012 1931 Cabana Drive, San Jose Sold - $1,650,000 8/23/2012 6. 2517 Gerald Way Sold $767,000.00 08/30/2011 2517 Gerald Way Sold $1,183,000.00 -05/17/2012 7. 2575 Richland Ave Willow Glen Sold - $757,000.00 5/31/2012 2575 Richland Ave Willow Glen Sold - $1,165,000 09/10/2012 8. 21216 Bank Mill Road, Saratoga Sold $885,000 12/21/2005 21216 Bank Mill Road, Saratoga Work in Progress! Approx $4M 9. Budget Goal Rental Remodel Sub-division San Mateo - Gilroy 10. 2498 Westgate, Willow Glen Purchased for $1,3M in 2007; sold for $1,835,000 in 2009. Originally on market for $2,975,000.00 1715 Willow Street , Willow Glen Purchased for $500,000 in 2005; sold for $1.600,000 in 2007. Originally on market for $2,095,000. 11. Check recent sales for past 3-6 months within the same neighborhood and or comparable. Usually within a mile radius Compare apples to apples.. Lot size is important as well as age of home. Know the neighborhood and style. What type of materials are preferred. Evaluate floor plan Will it appeal to a majority of buyers or is it too specific. Size of home and available yard. Again, know your neighborhood. Important in Willow Glen, maybe not in Mountain View Select neighborhoods that are customized versus tract style housing. Marketability When will 12. RealtyTrac FlipComp Loopnet Future Coldwell Banker App 13. Multiple Offers Extensive Repairs City and Building Restrictions 14. What is the Value Add? Project Management Skills Resources Contacts within City/County Planning, Stagers, Designers, Networks with other Agents, trade recommendations such as contractors, painters, landscapers, etc. Team Player Communication from all parties. Provides necessary information to client/investor such as comps, school scores, neighborhood pros and cons. Honesty Is this truly a good project with projected ROI. Marketing MLS, On-Line, Internet and Real Estate Sites. 15. Use your Realtor as a resource Understand the market .. Is it competitive? Will there be multiple offers? Has the property been on the market a while? Can you negotiate? 16. Long Escrows! How will market activity be when the project is complete and predicting exit value? 17. Cash Traditional Financing Private Lending Cash Auctions and Challenges 18. Ruby Foote Coldwell Banker 1712 Meridian Avenue San Jose, CA 95125 408-823-3234 [email protected] Amy Paris 4 Square Development Co., Inc 1155 Memorex Drive Santa Clara, CA 95050 408-390-0343 [email protected]