Lead Source: Off-Market

Strategy: Flip

Purchase Price: $88,000.00

Rehab Budget: $51,500.00

Project Timeline: 12 weeks (from closing)

Resale price: $185,500.00

Overall Return (pre-tax) 

Overview

1017 Smith was a benchmark project for a few reasons. The first is it represented a coming together of many of the early lessons we learned with our first few flips. We had carefully documented the mistakes that resulted in missed deadlines and lower than target resale value and pushed fixes to our system. The result was we not only met our deadlines with Smith but also exceeded the profit we were aiming for.

Extra profit is always a nice oitcome, but the real win was demonstrating that the system we’ve built is capable of identifying, purchasing, and executing profitable projects in a timely manner and from a distance. Many more to follow.

The other reason is Smith is the first deal we secured through the new marketing wing of our business. The real estate market in early 2021 was almost completely unyielding of good deals through the traditional channels like the MLS. So, we decided to go to sellers directly ourselves. This property was the first fruit of that labour.

Overall, the profit wasn’t outlandish and we could have wrapped things up a bit quicker. Still, with 1017 Smith we got on the board.

Before

 

After

 

Final thoughts

 

Good momentum was built. There is still lots of room for improvement.

While overall execution was solid, the final presentation was lacking minor touches like landscaping, power-washing, trim work, etc. To address this, we pushed improvements to the final stages of the rehab system to catch small but cumulatively significant aesthetic oversights in the initial rehab scope.

The system is ultimately the key to a good product. By maximizing efficiency and standardizing decision-making, we can cut down project timelines while also improving the quality of our product.

We will build on this success moving forward.