Auction house is on the market and we’re HIRING AGAIN!
Well, another week has passed and I feel like I have seen a lot of progress finally. In this business, the work just pours in and the return can take time to see. The late gratification can make it very difficult to stick to what you are doing and is the reason that a lot of people who want to get into real estate investing quit. This is especially true for new real estate wholesalers. They may go to a get rich quick seminar or read some posts about people making $10k+ checks with no money out of pocket and jump on board. Then 6 months later when they haven’t made any money, they say that it doesn’t work or they must be doing something wrong. It’s the ones that stick to it and continue to grind who see the most success. It may take weeks, months, or even years to see that first pay day but when they do, their eyes open wide to the possibilities in real estate. If you are reading this and you are getting frustrated because things aren’t working out the way the gurus told you they would, keep pushing and you will see success.
Now, back to what we got done this week. The auction house got finished up and was put on the market. We got the flooring in, the granite installed, fence put up, and the punch list completed. The house was then cleaned, staged, and photographed to go on the MLS. I hope you’ll agree that the house came out great and I think it will move quickly. We priced it at $264,900 and at under $90/sq ft in Pace I think that is a deal for the new owner. I will keep you up to date on the traffic and throughout the process on selling this one. Here are some photos and I will post the side by side before and after’s when I get them done.
The phones have continued to ring off the hook from the mailers I have been sending out. Dee Dee has been doing a great job answering the phones and speaking with the sellers. She took over 150 calls this week and set me up for 10 appointments. I have spent my time running comparables (comps) and calculating the ARV and anticipated rents so I am prepared when going on the appointments. I have also been calling back the sellers to make sure they know who I am and what our company can do for them before I go out on the appointment. A lot of times this turns into phone tag and you really need to have a good system to make sure they don’t fall through the cracks. I went on 5 appointments yesterday and wrote 3 offers, 2 of them just weren’t for us. None of them were accepted on the spot but I think one or two will turn into a contract for us down the road. Again, follow up will be key.
Filled In Pool House
My GC and I have spent the week discussing the plan going forward for the filled in pool house. We have decided to scale back the renovation on it and reduce the sale price to get this house completed faster than planned. Now that we have a larger inventory of properties to complete I think that it would be wise to get more done over a shorter time period and make a little bit less money on each. I will keep you updated on this project and post some before photos next week.
Due to my full time job, I am hamstringing the company when it comes to going on appointments with sellers. All of my appointments need to be in the evenings or weekends and we are likely losing deals because of that. If a hot property pops up on our radar I can’t get out there and meet with the seller because I am flying or working during the week. So, I am going to bring on an acquisitions manager sooner than I anticipated. I am looking for a hardcore sales person who will go out to meet with a seller and lock down a contract. They need to be able to take constructive criticism, learn quickly, be good with negotiation, and think creatively when it comes to sellers needs. This person doesn’t need to know real estate as I will teach them what they need to know, but they do need to be a great negotiator and willing to learn. If you know anyone who fits this bill and lives here in Pensacola or is willing to move to Pensacola for a great opportunity with a growing company, please pass them on to me.
Today I go look at a house we bought in Navarre and come up with the scope of work
Get into two more houses we bought and come up with the scope
Interviewing candidates for the acquisitions manager job
Lock down more contracts to wholesale, flip or rent!