Posted by GL(ON) on February 23, 2003 at 08:07:56:
Here is what I do in detail. First clean up the house (inside) and yard, cut grass, etc. so the outside looks decent and do the most needed outside repairs and painting. Then start on the inside. Meanwhile advertise put up signs etc. When anyone comes to look tell them what you are going to do, when it will be done and how nice it will be, also let slip that if they want to buy sooner you will give them a better deal. At this stage I put a low price on the finished product. The chance of anyone buying is slim but what the heck. Be sure to get the lookers’ name and phone number so you can call them and invite them over when it’s done.
As you keep working naturally the value goes up. When it is all done you raise the price to full retail and hold open house and call all the names you accumulated.
Just a paint job and then flip it idea… - Posted by ChrisC
Posted by ChrisC on February 22, 2003 at 13:48:15:
Dear Pro’s and Guru’s -
I’ve been studying Home Inspection lately and going out to open houses just for practice. Wondering if anyone has done deals where you just painted the house (ONLY) and then flipped it retail to a fixer-upper type to live in, leaving other problems “as is” (fully disclosed of course). Anyone have a success with this? I read about it in one of the Rich Dad books and Joe Kaiser’s “Prehab” technique. I found a house that might be a candidate. Any feedback would be appreciated.
Side Note: I thought this was a nice tip. Whenever working with a new painter, have him paint just the garage to see the quality of work first!
Re: Just a paint job and then flip it idea… - Posted by Dave (MI)
Posted by Dave (MI) on February 23, 2003 at 10:32:18:
Hi ChrisC
I just recently applied Kaiser’s “prehab” technique to a wholesale deal I flipped. House was VERY dirty but otherwise in OK shape. Did a thorough cleaning and added mini blinds-that was it. The perceived value of the house was greatly increased. Without the work (which took 5 hours total) I would have made only 3-4,000. Instead, my buyer was able to see the potential in the project and I made $10,000.
Re: Just a paint job and then flip it idea… - Posted by GL - ON
Posted by GL - ON on February 22, 2003 at 16:48:01:
You can trust what Joe Kaiser says but not Robert Kiyosaki.
Painting will add more appeal and value than anything else you can do. A thorough cleaning inside and out works too.
I can definitely see giving a house a paint job and a clean up then selling it as a handyman special.
What I would do is put it up for sale at a bargain price reflecting condition, and if it does not sell right away keep working on it and raising the price as you go. This is actually my favorite way of doing reno’s.
Caulk and Paint Make a House What It Ain’t - Posted by Kristine-CA
Posted by Kristine-CA on February 22, 2003 at 14:19:26:
“Pre-hab”–what a contractor friend of my mine calls “Lipstick and Rouge”.
Seriously, though, some properties, if cleaned and painted will hold more appeal for potential owner/occupants that are willing to buy a fixer. Some people really can’t see any potential if there a property is too dirty or unkempt.
However, these same kind of buyers usually need loans and a lot of repairs won’t cut it with their lenders. So, in my opinion, before you do a pre-hab, it’s a good idea to have your exit strategy planned.
Re: Just a paint job and then flip it idea… - Posted by Adam (Austin)
Posted by Adam (Austin) on February 23, 2003 at 07:26:25:
I’d had this thought, myself. Actually, I think that there are a lot of wannabe “investors” out there who think that buying 5%-7% below market value is a sweet deal.