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Flipping Junkie - Danny Johnson - For Those Addicted to Flipping Houses

Flipping Junkie is a podcast for people addicted to flipping houses and real estate investing. Subscribe for weekly episodes with interviews from regular Joe house flippers that have become successful flipping houses as well as expert real estate investors sharing their best secrets on how to flip houses for big profits. Find out in detail, what is working today, to find great deals for flipping, how to properly analyze deals for flipping, renting and owner financing, determine repair costs, find contractors and manage rehab crews, what improvements to make and how to quickly sell your houses for big profits. Don’t worry, we won’t leave out the serious mistakes that you need to avoid when get starting and growing your real estate investing business. Join Danny Johnson to get the inside scoop on how to get started in this life changing business that has such huge potential to create financial freedom for you and your family.
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Flipping Junkie - Danny Johnson - For Those Addicted to Flipping Houses
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Now displaying: May, 2017
May 29, 2017

Jason has been in construction over 25 years.  He started out of highschool working with his dad on misc projects and went on to own and operate a cabinet company for 12 years.  After closing the company he started lending to rehabbers for Gap funding and learning about this thing called flipping and started flipping in 2010.  Jason has been flipping ever since and joined up with Peter in 2014 and have flipped or wholesaled 50 + deals together.

Jason is married with a split family of 4 kids. All who are very active in sports, Competitive Dance, Swimming, Gymnastics, and basketball and football.  They just moved into their new home they had built a couple weeks ago.

Jason and his wife Megan who is a Vancouver school Principal enjoy traveling together, are very active in Crossfit at their local Box.   

Share your backgrounds and how you started flipping houses and working together.

Been in construction since 1993 owned a cabinet shop for 12 years build a few houses, Started in 2009 lending gap funding to a rehabber. Started doing all the work on flips in 2010-13 flipping about 15 in that time, Peter’s roofing company did all my roofs and we became friends during that time. We partnered on our first deal July 1st 2014 closed 3 deals that year together 2015 we did 11 deals, 2016 completed 22 deals wholesaled 10 and started a wholesale business we are partners on.

What are your goals for 2017?

Goals are 50 flips we have 25 on the books so far this year Plan is to wholesale 50 also min

Sold 12

Pending 5

Rehabs 4

Closing within 2 weeks 4

What are your favorite and/or most profitable types of houses to rehab where you are?

We love 2/1 800sqft houses we are in an out within 3-4 weeks

What do you do to prepare to start rehabbing before you close on the purchase?

We make sure we are ready to start the rehab the min we record we have a crew there to start and usually have house demod within a few hours.

Walk us through your rehabbing process from determining scope of work to lining up contractors to getting it ready for sale.

My business partner is my GC so he keeps our numbers in line.


What issues have you encountered when trying to sell rehabs?

Squatters homeless

Appraisal issues

Portland is a really hot market so our product sells within 2 weeks max most within the 1st weekend

How can anyone from the audience get in contact with either of you?

Nwpropertyinvestmentswholesale.com

Nwpropertyinvestmentsllc.com

May 22, 2017

What are some of the things you do before putting the finished product on the market?

  • Re-run comps
  • Final walk through
  • Staging - where get staging stuff from

 

How to work with our Realtor Laura to get the property on the market?

  • Docusign docs
  • Take pics and upload - what kind of camera and lens?
  • Agent sets up showing and feedback notifications

 

With the real estate market still going strong here, how fast have the houses been selling?

  • The fastest closing was up on the market on Thursday night, by Sunday it had 42 showings and 13 offers.
  • Not every property is like this. The sweet spot is between $140 - $165 for San Antonio properties that fly off the market.

 

How do you handle when we get multiple offers?

  • Use spreadsheets with all of the details of the properties, locations, contracts, and people offering.
  • Separate each thing that’s a negotiation point for when you come to the contract phase.

 

I know we’ve accepted offers before in the past only to find out the buyers couldn’t qualify.  How do we now avoid this problem?

  • Look for how someone is paying for the house. Melissa prefers cash for the house. Conventional financing is ok, and FHA would be the last one to look for only because FHA tends to have more hoops to jump through.
  • Ask for a proof of funds if the buyer is paying cash.
  • Who’s the lender? Melissa has a “black list” of lenders that are a no-go for the final sale.
  • Look for a lender letter attached to the contract.

 

So a common situation is where a buyer will get an inspection and ask for tons of repairs.  What is our procedure for handling which repairs we’ll agree to do and which we won’t?

  • Anything electrical (especially in the attic) should be taken care of before buyers even get an inspection.
  • Having a good agent will help the buyers not to be worried if you have an inspector that’s freaking them out by nit picking.
  • Always double check your punch list!

 

On FlippingJunkie we get the question all the time about the FHA 90 day rule.  What is that and how do we deal with it?

  • “Payment terms need to be conventional or cash”.
  • Between 90 - 180 days you will need 2 appraisals, or if the resale price is over %100 of the purchase price.  

 

What do you do after acceptance of an offer to make sure all is on track to close?

  • Start doing property updates with your title company twice a week.
  • Set up a schedule for the updates so that everyone is on the same track and staying focused.
  • Property updates every Monday from our realtor to the lenders to make sure everything is still on track to close.

 

What’s your top tip for being more efficient in this part of the house flip process?

  • Add a special touch when you’re selling a home to a buyer. Melissa puts little gift baskets for the new buyers to have.
  • Always work with your realtor and title companies to make sure things are moving smoothly.
May 4, 2017

Melissa Johnson has been flipping houses for 14 years, and man have they come a long way.

From brown (and one time green) carpet to sleek new tile, Melissa has been transforming the way she rehabs properties. But before you can make the houses look nicer, you have to have your team together.

Start with a contractor you can trust. Melissa has been working with her contractor for a long time now, to the point where they have an amazing working relationship. One of the key point of making sure you and your contractor are on the same page is to set the ground rules from the beginning.

Making sure you and your contractor have the same payment schedule agreed on will keep everyone involved happy. Melissa talks about going through the property with the contractors before hand and looking at every single detail of the house. That way, everyone is on the same page for what needs to be fixed.

There’s much more to your team than just you and the contractor, though. Melissa has been working with a realtor she trusts, and has become great friends with. It’s so important to work with people who are great at their jobs, and who are there for you.

For example, there was an issue with some buyers not being able to qualify for the property they wanted to buy and, instead of just closing out the deal, Melissa’s realtor fought and negotiated until all parties were happy. Having a realtor who will work with you, and also your buyers, is great for having your properties sold quickly.

All in all, Melissa has been working hard at showing what an amazing Flip Pilot she is. If you want to network with other Flip Pilots, join our closed FaceBook group by going to FlipPilot.com here: https://flippilot.com/beta-notify

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