My First Flip
When the face of Reeves Holdings, Inc, purchased his second real estate property in the winter of 2010, he wasn’t expecting to flip it. With his military training background and upcoming deployment egging him on, he realized that he had a lot to accomplish in a short amount of time. Though the property was only $36,500—a sum easily granted in cash to avoid loans and interest rates—there was much to be done before he could stand to make a profit. Tyrone Reeves had every intention of renting that house out to make money off of it, but with a thirty day time line after closing, it was crunch time. How did the head of Reeves Holdings manage to pull off such a challenging debacle? With skill, foresight, and adaptability.
“Closing on the House” Horrors
Purchasing real estate property from a third party seller is relatively standard, but it can contribute to quite a few dilemmas that go otherwise unanticipated. Reeves recognized the potential issues that could result from the owner living far off on the east coast, but he did not let that deter him. He was on a mission, and the house had to be in order before he shipped off for his third deployment overseas. After paying for the property with cash, the seller promptly gave the man the keys to his new home; unfortunately, there is a little bit more that goes into homeownership than that. Before any home improvement projects could begin, Reeves would need to figure out how he could get utility usage in the home without the closing paperwork. Like a true natural at flipping houses, he rented a generator to use until the utilities could be officially set up for the property. Without letting anything stand in his way, Reeves managed to knock out a good chunk of the work on the house before he even closed on it. Whether it’s his military background or natural aptitude, Reeves put his adaption capabilities to the test when he dealt with the closing process on this property.
Home Improvement & Reputation
The actual house itself was not in bad shape, especially considering its age and condition. It was sturdy, dependable place with a lot of charm and character, which made it all the easier to work with. A few coats of paint here, some hardwood resurfacing there; the house would be as good as new. With all the work he had been putting into the home—even going so far as to show up for the closing in the middle of his renovating and returning once the paperwork had been officiated—Reeves decided to get some help on his remaining challenges. Though he had no formal instruction on projects of this caliber, he relied on his obsession with DIY networks and his skills as a fast learner to make a deck on the back of the property. Thankfully, he had friends who were will to at least offer moral support as he strained away on the home improvement tasks. While he was hard at work whittling away the hours, a stranger happened to emerge on the premises. The man simply waltzed in, as if he was in a trance. He looked around, walking to and fro, examining the house, before asking if Reeves knew why the house had been put up for sale. As it turned out, the man was actually good friends with the prior occupant, though not the kindly old woman who had moved away. That woman’s son was his friend and neighbor, and he explained that the house did not have the greatest of reputations. In fact, it was he who had found the body of his friend hanging from the stair rail in a gruesomely successful suicide attempt. According to the stranger, the young man was distraught over many things—namely, his father’s recent passing and his mother’s decision to move away and remarry. The stranger disappeared back into the silent night, dispersing as eerily as he had emerged. With the newfound potential of ghosts haunting their every waking thought, the friends and Reeves managed to get their improvements done as rapidly as possible.
The Problems Never Stop
Deployment is not the sort of thing one can postpone or avoid, and so Reeves left his property in its mostly finished state to be rented out. His first tenants were old friends of the family, but unfortunately they were not quite the compatriots they had once been. The relationship between leaser and tenant was an amalgamation of strained, discombobulated, and unpleasant experiences for the 24 months that they lived in the house. With such a disquieting first wrangle with leasing, Reeves decided to abandon his initial projections for the property, instead opting for a full renovation and resale—thus, this lovely home became his first flip. Renovating for 30 days before renting the place out is incredibly different from the renovations needed for a successful flip, and Reeves, being the knowledgeable man that he is, understood how much more work would need to be done to make the place a vibrant addition to the housing market. He went through several contractors before decided to throw up his hands and roll up his sleeves. Reeves stripped the entire property down to the bare minimum, opting to replace the wiring and extend the acreage with some efficient tools. He added outlets and fans, dimmer switches and light fixtures. He brought out the carport, replaced the windows, and extended the stairs, but to make matters sweeter, he even closed in the porch. Between the Habitat for Humanity store and liquidating lumber sellers, Reeves managed to make several improvements that would have otherwise cost him a fortune. Throw in the benefits of a new roof and a redone deck, and you’ve got a gorgeous ensemble worth far more than the original asking price. Though Reeves made more than twice the initial amount he spent for the property, the biggest lesson he learned from his first flip is to always keep track of your spending.http://www.beautifyhome.net/general/my-first-flip/http://www.beautifyhome.net/wp-content/uploads/2017/04/home-1024x683.jpghttp://www.beautifyhome.net/wp-content/uploads/2017/04/home-150x150.jpgGeneralHome Improvement,My First Flip