What's going on, everybody. So in today's video, we're going to be doing a before and after video
of a recent flip that I just did, with all the numbers. I'm going to show you how I found the
deal, finance, the deal, negotiated the deal. We're going to do a through tour of the before
of the property. And then we're going to do a walkthrough tour after all the renovations were
done. And I'm also going to show you exactly how much I made, how much I spent on repairs,
everything that came up, some real estate tips along the way. So that means that you're
definitely going to want to watch all the way to the end of this video, and let's get into it.
All right, so here's the outside of the condo building. My unit is actually on the top floor,
which is good, but it's on the other side, so we'll walk up to it. And something to
know about when you're purchasing a condo, the top floor units typically sell for more. From a
security standpoint, you typically don't want to be on the first floor. And then also from a noise
standpoint, you don't want people stomping around. So when you're on the top floor,
obviously you don't have that. So let me just show you the community real quick.
It's actually a massive community. I think there's like 500 or so units,
which is good though, because there's a lot of comps. So let's walk up to the third floor.
All right, so here we are. Here's the lockbox. So I'm going to open it up and we'll check it out.
All right, so here we are. Here's the dining room. There is my brother, Matt, subscribe to
his YouTube channel. Link it below.
I'll put a link below. But as you can see, I told the seller to leave all the stuff, all the junk,
just to make it as easy as possible for the sale. So what we're going to do in here, we're going
to get rid of this carpet. We're going to put some nice light gray laminate flooring, which
I think there's been four or five that have sold in this community that have that type of
flooring that have sold for a premium price, so that should look good, basically all around.
We're going to dress up this fireplace a little bit, clean it out and make sure it's working.
As far as the kitchen goes, I was originally planning on just completely redoing the kitchen,
but the cabinets are actually in pretty good shape. Actually the appliances... Actually the
entire kitchen is in pretty good shape. However, what we're going to do, we're going to put
stainless steel appliances, we're going to paint the cabinets white, put some new hardware, replace
a light fixture, a new granite countertops, replace this. And it should be looking
should be looking pretty good after that. It's a small kitchen, so it's not a huge project.
And I like these stairs too. What do you think of these stairs? These are pretty cool.
I like them. Matt likes them. All right, so here
is... There's laundry. Here's the bathroom. What we're going to do in the bathroom... So basically
all of the ones that have sold for a premium price, they basically
redid everything except for the shower. So I'm probably going to leave the shower tile
as you can see, it's not in bad condition. We'll probably clean it up a little bit,
but we're going to replace the tile, or actually that's laminate,
replace the vanity lights, new paint, everything like that, and put a new closet door here.
Here's the bedroom. So we're just going to paint this, make sure everything .... The outlets,
make sure everything's good. Here's the view, not much of a view, but you're on the third floor. So
that's usually the best place if you're on the top floor. Here is the closet with actually a newer
water heater, which is good. Most properties you're going to have to replace the water heater,
typically costs around a 1000-1500 bucks, but this one we won't have to. Here's Matt checking
his Instagram messages over here. Not enough DMs.
He needs more DMs. What are you going to do about the fireplace?
We are going to just dress this up. I got a couple ideas. My contractor's better with
the actual design, but we're going to make it look a lot nicer. I don't know
the exact specifics yet. Maybe put like a mantle up there, make sure it's working.
This is a cool little selling point of the property, is the balcony. So it's a
decent sized balcony. We're going to have to clean it up because it's a little dirty right now.
But you can see some people have like a umbrella and chairs and nice little patio. Here's the view.
And then what's cool about this... Here's the HVAC it's actually newer HVAC,
so I got lucky that it was newer HVAC and newer hot water heater.
So that's easily $5,000 that I probably saved right there.
And let's just walk up these stairs. Some of these units, they took the carpet off and just have the
hardwood and painted it black and it looks pretty cool and modern. This, I think we're
going to remove the carpet, I need to talk to my contractor about what makes the most sense.
Out of breath. So here is the master again, and junk removal, new light fixture. As you can see,
there's popcorn ceilings around, but all of the properties that have sold for premium, they all
kept their popcorn ceilings, so I don't think we're going to need to do that. Got a small closet
right here and in the bathroom. Again, it's not in bad condition, it's just original. So we're
probably going to keep the tile is and just do new floors, new vanity, new toilet, new lights,
and get rid of this paneling, some drywall.
And so you got two clauses up here. It's kind of nice. So...
That's basically it, the tour. I'm going to have Matt give me some condo tips for selling a condo
as fast as possible. Luckily with this community, they-
Wait, you'll hire me? I don't know, we'll talk about it.
These condos, these two bedroom condos, they tend to sell pretty quickly. So hoping that
that trend continues and we're going to come back with a video of the after renovated property.
All right, so here is the finished product. It
looks a little bit different if you saw it the last time. We just got the stagers in here. And
as you can see new floors, new fireplace, new paint, new light fixtures. We stained
the stairway, which looks good. Welcome to my condo.
Oh, and there's condo expert, Matt Leighton. Welcome, welcome. Take a look around.
What are the top three things you like about this condo?
Top three things. First of all, it flows very well. I know, because of the staging,
where my couch is going to go, where the dining room set is going to go. Number two,
I liked the open kitchen. That's what everyone is looking for. And number three, it's painted.
Painted. And it's on the top floor. And it's on the top floor.
So no one's going to be stomping around. But let's take a tour. So if you remember this,
there was just junk everywhere. I got new lights, did some trim work, painting. And this kitchen,
we actually kept the original cabinets and we refinished them and sanded them
and painted them and then put some new hardware. We did all new appliances,
new countertops, new backsplash. Let me know what you think about the backsplash. I think it looks
pretty good, but so kind of... Maybe it's too busy, I don't know. More of a numbers person,
not so much a design person. That's why I'm a contractor doing this. So as you can see,
pretty open concept, modern concept. Some people put carpet on those stairs. We just
stained them. Took off the carpet. And I think it actually looks really good.
It's much better without the carpet. Without carpet.
As little carpet as possible. Less carpet the better. Yeah.
So let's take a quick tour. Here is bedroom number one. We got a new door handles as well.
So what's cool here is you got the tall ceilings. Here's carpet, but it's a bedroom,
so carpets okay. We didn't really know what to do in here, because you have the hot water heater,
so it's kind of open to the buyer to put in a closet as they see fit.
Let's do one more... You're kind of looking into your neighbors,
but that's every place in this complex. So here is the bathroom.
Looks a little bit different doesn't it? Tile work. [Subway 00:09:39] ceilings. So what
they did with this tub was they actually... It's the original tub and they just sanded
and painted it white. So it looks like a brand new tub. So you can save some money that way.
I Like this entrance. And as you can see here, there's fillers on each side because
it didn't quite match up with the dimensions, but the fillers just make it fit a lot better.
We have washer, dryer. We didn't replace those, it's just a washer,
dryer, still works. We need to get this door on the hinge. It's kind of off it's hinge right now,
but there's a couple minor touch up items. Just a closet with the paint that we used.
I don't know what that is. Alarm center. Okay.
So let's take a look upstairs. There's the patio. It's actually raining a little bit outside,
but the power washed the patio. As you can see, it's big enough to have a little table out there.
All right, let's go upstairs. So this stairway, they just sanded and then stained.
Here we go.
All right. So here's the room, new paint. We kept the original windows because they
were still in pretty good condition. Got the world's smallest little fan up here,
but this thing is powerful. We actually have to make the chain a little bit longer because it's
kind of high up there right now. So here is the room, really tall ceilings again.
As you can see, the closet has the gold trim around that so
that might be a final touch up item as well. We might...
Properties going active in a couple of days, but I might get the contractors to paint that white,
maybe even black. And if you have a suggestion, put it in the comments below. I want to hear
what you think, if it should be black or white. Here's the bathroom.
Get the large subway tiles. And then, floors.
Then if you remember this closet, didn't have this type of ceiling. So they put in
a new drywall ceiling. It's big enough for someone to kind of design their own thing.
And then up here, he still needs to paint that. And there's like all this storage that
goes up here, it's kind of a lot of space. So that's good for a potential buyer.
And we get the aerial view.
This looks pretty nice. The neighbor was actually talking about, "Oh, this place is going to sell so
quickly. It's just like, I love this place. I didn't know you could do this with it."
She said the stage... She really liked the stairs.
How do you think it turned out? I think it turned out well,
I think they were fast. They specialize in this area there, you know, I've worked with them
before. So they obviously do a great job. Yeah. You're going to get like five
contracts on this. I'm not even saying it- Okay, he says it right now - five contracts.
Because there's so little inventory in Northern Virginia and this is a move-in ready
condo that's going to be priced accordingly. It's going to be priced aggressively. So you're
not going to have any issues with this. All right. Well that's the tour and we'll
go over the numbers and the next part of this video. All right. Talk to you soon.
Okay, so real quick, I'm going to talk about how I found the deal,
as well as the numbers on the deal. So the way I found the deal, there's a really cool website
called Propstream where it's... Think of the movie Moneyball, but for real estate investing.
So you can really find like the most potentially motivated prospects in any market. And I have an
entire tutorial video, I'll put the link below that you can watch, on really how to use prop
stream. But I was marketing to properties that had been owned at least 15 years in a transitional
neighborhood, to owners that were, I think at least over 45 years of age. So sometimes people
have built up equity, they just want to cash out. So you really want to be very selective.
You don't want to just market to everyone. You want to be pretty targeted in your marketing.
So you can watch that tutorial video on really how to find motivated sellers in pretty much any
market. And then the way the seller found me. I had sent a postcard to them and they actually
submitted their information through a website. I use a website called Carrot. It's a pretty popular
real estate investing type of website. And I'd highly recommend you check it out. I also have
a demo video on that. And then if you sign up using my link, I'll actually do a free 30 minute
coaching call with you. The reason for that is, I'm an affiliate, but it is the website I use. And
it's a great tool because what happens if you're doing direct mail or different types of marketing,
some sellers want to contact you in different ways. So some might call you directly. Some
might text you, some might email you, some might prefer to fill out a form on your website.
So you really need your website presence, your online presence to be pretty good. So these
carrot websites just make it so simple and easy and effective for you to get online leads. Now,
as far as the numbers on the deal, I actually had a... The original offer was $315,000, the 5k
seller credit. So that'd be $310,000, but it fell through because of this issue right here. I don't
want to say it because YouTube might demonetize me, but we had had like 20 or 30 showing. So I was
actually surprised, I didn't even get like a full price offer. You know, 5k seller credit after 20
showings over the weekend, you would think you'd get a pretty great offer. So I was actually happy
that this first offer fell through because I had a feeling I could get a better offer.
So when I listed it again, three weeks later, we got a 320K offer 5k high, actually 10K higher,
with a 2K seller credit or so it's about $8,000 higher. However, we found out that there was
polybutylene pipes in the unit, which those are not good. There's a certain section of Alexandria,
Virginia, where the entire townhouses and condos all have these types of pipes. And for some
reason, my contractor and myself, who've done a lot of business in this area, we both missed it.
So that, that costs us about $5,000 to replace the entire pipes in the condo unit. And I think
my contractor gave me a pretty good deal on that, so some cases it could be higher. So overall I
had purchased it for 199, that that includes a couple thousand dollars in closing costs.
I spent about $37,000 on repairs. I use a private money lender, which I saved about
double from my previous hard money lender. So always look into private money, just ask around,
ask different loan officers, your standard loan officers in your area. If anyone in their company
does hard money lending. That's how I found my hard money lender and it saved me $10,000 on this
deal. So it only costs me $9,000 and financing. I paid a two and a half percent commission. So
that was about 8,000 bucks. And that's another way to save another $10,000. So I'm a licensed
agent so I can list my own properties. So between using private money and being a licensed agent,
I saved like $20,000, which is a pretty nice little bonus on top of every single deal.
And then I paid my stager about $2,500 and photos were about 500. And a lot of people skimp on
photos and staging because they can save $3,000 or sometimes more than that, but you should almost
like if you're going to splurge on one thing, splurge on stage and it photos. Professional
photos like game changer. Even if your house, even if your renovation is terrible, if you have good
photos, it's going to make your property sell a lot faster. Especially if you have staging in
there. Carrying costs were about $2,000 in closing costs about $2,000. So the total costs were
$61,000. So if we add up all the numbers, this was the final sales price. These were my expenses.
That is the next number. And then this is what I purchased it for. So we had a $58,000 net profit,
which is really good for a pretty low risk type of condo. And that's something you have to keep
in mind. Any type of investment deal, if it's going to be a massive gut renovation, you would
want to make significantly more than 58. And honestly, with this type of deal,
because it was so low risk, I probably would have been okay, making like 25 or 30,000 on it.
Probably not less than that, but something to keep in mind. The bigger the project, the more
margin of safety you need to put in there. So thanks for watching this video and check out
the two tutorial videos below in regards to the website and also using Propstream
to find off market leads. And additionally, if you're looking for a real estate mentor,
I do some one-on-one real estate mentoring and I'll put a webinar link below so you can watch
the free webinar and see if it makes sense to work one-on-one together. And as always, if you have
any questions, drop them in the comment section below and I'll see you in the next video. Bye.