What Real Estate Investors and Property Scouts Should Look For in A Home
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Let me start. Hello, my name is Chad Brinks and my primary goal of being on this group is to meet and interact with motivated sellers through Property Scouts that can provide me with leads from their neighborhood. I primarily like to work pretty much anywhere in Pinellas County. However, I'm not oppose to going outside of Pinellas for great deals.
In The last 5 weeks, I've purchased 5 properties, two in St Petersburg, two in Clearwater, and one in Largo. These properties range in ARV vale from $150,000 to $850,000. I have also sold about $8000,000 in investment property since January of this year. So, as you can see I'm very active in the marketplace.
Homes with an estimated after repair value (ARV) around 400K is where I feel my sweet spot is. So, a great home that I'm likely in in the market for is probably 2,500-3200 sq/ft home in Pinellas County, not in a flood zone, nice neighborhood, etc. Personally, I don't look for the cheapest homes out there (tones of flippers love them, their prices get bid up, and the margins get lower) however, this is the 'bread and butter' of many flippers, so I won't take away from the potential that these properties have. However, I look for homes I can add the most VALUE to and sell for $425,000+ when my renovation is complete.
I'd like to share one current home I’m flipping as a great example, of what I consider my ideal flip.
This is a home I bought, and am currently rehabbing in Clearwater, FL. It is around 3,00 total sq. / ft under air and sits on a larger lot that is pretty unique to any other you’ll find in Clearwater, Fl. The lot is almost 13,000 sq. / ft and it sits on a cul-de-sac of a double dead-end street (so, you have virtually no traffic). As a bonus, there is a kid’s playground about 100 yards away by walking across city owned property.
I contacted the selling agent after I saw this property fall out of contract twice due to buyer’s financing. Anyhow, I started doing some research about the seller’s situation (Facebook, LinkedIn, google, and other public records really help put the pieces together and to help me understand the seller’s situation. They had already bought a house in Tallahassee do to a job relocation and they quickly found out that a “traditional sale” was no longer right for them.
They had moved out of town and on with their lives. I could tell that this home was more of a problem to them than an asset to them. After contacting their agent about giving them a quick cash offer, I was told to “pound sand” and “this is not the right house for your” insinuating my offers were low and insulting. However, I stayed polit and professional. Another 3 weeks or so go by and my phone rigs. It’s the seller's agent wanting to know if I’m still infested in buying their property. “Of course,”, I replied. I sweated my offer just a little and asked if they'd like to close within 48 hours. I would almost instantly take this “monkey” off their back that has been hemorrhaging them money for months. Reluctantly they said “yes”, and 48 hours later that had their cash their burden lifted. And for me, I had just bought their house at a very unheard-of price.
So, besides the homes location I looked to see how I can add VALUE to the property or unlocking the "hidden value of homes." For this house, I quickly outline some of the scope that I truly believe can significantly increase its value.
So, the main idea was to add a mother in-law suite, income unite where you could do wither short term rentals (think Airbnb daily or VRBO for monthly rentals), or long-term rentals utilize a completely self-sufficient living space however you want. It's also up to you the new buyer; however, they wish to utilize the separate unite, giving potential buyers a wide range of options, which may generate substantial income.
So, we needed to add a full kitchen with beautiful granite countertops, add a double vanity (for luxury living in a smaller 1/1 apartment. walk in closet in master bedroom, new light fixtures and ceiling fans, all new flooring, separate laundry hookups, and new higher end GE stainless steel appliances, etc. It's fully self-sustained living area.
In order to give the buyer options, I created separate entries, into each unit so it could be used as a rental income or a great mother in-law or guest suit without commingling space.
Our third priority was to redesign the master bedroom floor plan in the main house. We relocated the door leading into the master on the other side of the room. This highlights the door access leading outside onto the multi-tiered deck. More importantly, it allowed us to make the space a better and larger walk-in closet, and a master bathroom with a cobblestone flooring shower and a huge 72-inch double vanity covered by a quartz white countertop.
Fix the outdoor stuff and detail the property. Scraping the popcorn ceilings, removing the faux beams, get rid of the "gold" trim of the fire place, stain the fireplace mantel, change the main house to more open floor plan by cutting down a couple of walls, and buying matching nickel in this case, for doors, kitchens pulls, light fixtures, celling fans, etc., should all match. This also means cleaning up the exterior to make it more curb appealing. Like painting the garage, garage floor, pressure washing, securer a few screws, and sealing the decking. Kind of all the small odd-end jobs that really make a good house into a great house.
2/3rds of the adjacent land is owned by the city of Clearwater and cannot be used to construct future homes. Tis mean you have a very large and private outdoor living space and yard. Our asking price is going to be around 450K and the home sits on a lot unlike any other you’ll find in Clearwater for anywhere near this price range this price. Usually I keep my number private, however, there are some "basic" rules of thumb that I or another Investor might be able help you hone in on what they see at the highest and best use (most money potential) from a given property.
For this particular property, I wanted to share my vision. What I saw and soon the reality of "unlocking" the hidden value of this one particular home.
So please feel free to share an experience or two, where your located, and try to connect with a cash buyer/investor / flipper.
Well, that is one of my current stories in real estate and my opinion of how this can be a lucrative opportunity for everyone. For those getting started out, it takes money to make money, no doubt. Get a good mentor and you may make $200 on your first transaction $300 on your second $500 on your 3rd and $30,000 on you fourth. There is no limit to how much you can earn when hustling (hustling smartly) in the world of real estate. It's up to you to bring the drive and willpower.
Please feel free to reach out to me at any time. I do prefer text a addition or a voicemails if can’t answer right away.
I’m Looking forward too many successful transactions with this growing team
Chad Brinks, Broker
Text or call my cell: (727) 460-048
TOR Real Estate