Scott Lurie and The Hard Money Co. are performing a fix and flip, and are documenting the entire process. In our first video in this series, Scott talks about the first things you should look for in a potential property and gives you insight on how to get started.
Fix and Flip with Hard Money
Fix and Flip Transcript:
Hey guys, Scott Lurie. One of the questions I get almost every day is how do I get started investing in real estate? And that is a great question. I thought based on our newest acquisition of a flip that I'm teaching my son, how to acquire, flip, and achieve maximum profit, that I would walk you the investor, potential investor, interested investor in how we source transactions, how we evaluate the transactions, and how we determine how we can make money in the real estate industry.
We're sitting in the living room of a house that we just acquired from a wholesaler in Milwaukee, Wisconsin. This house happens to be situated on 81st Street on the south side of Milwaukee in a very stable and welcoming community for first-time, home buyers, as well as home buyers.
Our lure to this property was based on the comparables in the market. As you can see this house is in great distress and to many people, that is great fear too. To me, a seasoned investor, this is dollar signs. What I want to walk you through is how to evaluate, how to determine the ARV, which is the first and most important piece of this puzzle, and then determine what it's going to cost us to stabilize the asset. And then, what everyone wants to know, how do we get to the money?
What do you see that I see? Well, I see homeownership, right? How do I, how do I recognize homeownership? The yards are kept nice. The bushes are trimmed. The trash is not outside the house. There are Christmas decorations up. We have a whole variety of things that make me know that this is for homeownership and that keeps values high. And it’s a great opportunity for us.
First steps are first right now in the world we're in, we've already ordered our windows. We went to our local window purveyor and ordered windows. The lead times are pretty significant right now, so we're pretty excited to get those orders in.
We've got the roof… a partial roof. The roof has deteriorated to the point where there's a hole. I'm assuming we've had some animals living up there. The roof is being installed tomorrow and should be completed over the weekend. So, I'm feeling really good. We've got about an 11-to-15-week process here, depending on lead time to completely flip this house, which is going to be all new drywall, new flooring, kitchen, bathroom, roof, and then the biggest time delay is going to be putting in that garage.
We're going to walk you through that entire process. We're really excited about it, that we have a live real example that my son is going to be working on. And we'll be able to walk you through this entire flip, to determine and illustrate to you the investor, how to get started or how to achieve more profit on some of your flips.
Thanks for joining us. We're really excited about having you here today.