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

A Realtor’s Perspective on finding a Good Fix and Flip Property and Developing a successful relationship with YOUR Realtor!

• 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

Agenda

• Location , Location, Location

Corner lot, busy intersection, near commercial, apartments

• Know your SchoolsAPI (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?

How to Invest and Evaluate a Flip in the Santa Clara Real Estate Market

• Tear Down – New construction potential to be best home on the block or are there other newly built homes within a ¼ 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?

Different Types of Fix and Flip PropertiesTear Down, Remodel or Vacant Land?

Tear Down

2431 Plummer Ave., San Jose$674,000.00 Sold 02/08/2012

2431 Plummer Ave., San JoseWork in progress!

Tear Down

1931 Cabana Drive, San JoseSold - $820,000.00 – 3/31/2012

1931 Cabana Drive, San JoseSold - $1,650,000 – 8/23/2012

Remodel

2517 Gerald WaySold $767,000.00 – 08/30/2011

2517 Gerald Way Sold $1,183,000.00 -05/17/2012

Remodel

2575 Richland AveWillow Glen

Sold - $757,000.00 5/31/2012

2575 Richland AveWillow Glen

Sold - $1,165,000 – 09/10/2012

Vacant Land

21216 Bank Mill Road, SaratogaSold $885,000 – 12/21/2005

21216 Bank Mill Road, SaratogaWork in Progress! Approx $4M

How to Find the Good Fix and Flip Property?

Budget

Goal Rental Remodel Sub-division

San Mateo - Gilroy

Areas

Ouch!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 GlenPurchased for $500,000 in 2005; sold for $1.600,000 in 2007. Originally on market

for $2,095,000.

• Check recent sales for past 3-6 months within the same neighborhood and or comparable. Usually within a ¼ – ½ 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 the home be complete?

Comparable Sales

RealtyTrac

FlipComp

Loopnet

Future Coldwell Banker App

Various Software Programs

Deal Breakers!• Multiple Offers

• Extensive Repairs

• City and Building Restrictions

Market Trends For Q1 – Santa Clara County

Market Trends For Q2 – Santa Clara County

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.

Get your Realtor Involved!

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?

Research Property

Long Escrows!

How will market activity be when the project is complete and predicting exit value?

Challenges

Cash

Traditional Financing

Private Lending

Cash Auctions and Challenges

Financing Projects and Auctions

Thank You!

Ruby FooteColdwell Banker

1712 Meridian AvenueSan Jose, CA 95125

[email protected]

http://rubyfoote.com

Amy Paris 4 Square Development Co.,

Inc1155 Memorex Drive

Santa Clara, CA 95050 408-390-0343

[email protected]://4squaredevelpment.com