6 Facts to a Real Estate Flip or Flop


If I can get this property for what
would I buy it for No no no Bob No Bob- I did everything myself in here that is not how’d you do the
business And that right there is a house that I
have already flipped as well I already know that I can flip this house
to a buyer on my buyers list coz I have a strong buyers list in this area Hey what’s up guys John Cochran here and
today is System Saturday, the day that I bring you a system that I use in my
business you can rip off duplicate using your own
local market now if you haven’t been to one in my live events yet, why not I only deliver my entire blueprint to
you which qualifies you for a five hundred thousand dollars line
of credit to do deals with. Now we’re here in Zinio
Ohio at a property that I have accepted right now that I
can get out of if I choose to but on today’s session
what we’re going to do is we’re gonna play deal or no deal I’m gonna walk you
through this property and so you can see it I’m gonna tell you
the numbers on this thing and then you can tell me Deal or No Deal and then I’m going to tell you what I
did this property right here in Zinio Ohio is a three-bedroom one full bath home this property was also it has 1460 square foot built in 1949 okay the list price on this
property was fifty four thousand six hundred
dollars and I got accepted for thirty thousand five hundred and
seventy-six dollars at 44 percent off of list price okay so let’s go and take a look at this
real quick and that’s a big discount that I got on it
and I just wanna show you the inside of it … ow! one thing that I forgot to tell you that
be four you see the inside of how beautiful it is is that this property last sold in 2006 for 133,000 dollars how do you like that for a spread so
let’s go in inside of it right now check out these nice beautiful pavers
why we’re walking into this home alright so soon as you get in here you’re going
to notice that its kinda little bit weird this whole
doesn’t need a little work but obviously you can tell from the numbers a what it last sold for and then what we bought it for there’s a lot of spreading here so as soon
as you walk in it feels a little bit weird coming inside here but you’re also going to notice
extremely these hardwood floor they’re nice
hardwood floors kinda reminds me of the whole basketball court hardwood floors
structurally this thing is pretty sound structurally this property is pretty
sound so this would be the living room
area and these older homes which is really cool is that you have the wood working the
base working that is wrapped in a around which is always pretty cool features and
home like this so come right into this back room right here, this
used to be the backyard so this used to be the
backyard if you look right here that this was the back to the house okay
they did in addition to this which made this and extra room in here
and here is where they had you they got nice little deck and then
they have the backyard which is absolutely amazing, it’s big for an area like this it doesn’t have many trees on it
which I loved it’s just pretty nice open backyard
that you know your kids could play in one thing that I don’t really understand is that
on the desk deck right there is that the railing of it is really
kind a low right there so put a nice fireplace in here I don’t
know why they put this addition maybe just to make it a little bit larger
making it the the 1400 square foot or whatever when
you come in here missing this kitchen is complete
makeover first of all, it is extremely small for what people are wanting right now but
this thing it doesn’t have much cabinet space you’d have to do a little bit of work to this and
those cabinets are not going to cut it new kitchens? that don’t bother me. Fuse box
right here for the electric pannel right here on
newer breakers which is good but typically
most people don’t wanna see those right into their kitchen so I would
probably depending on what I do with this I would
probably look at relocating that. This is something
that I do not understand so a this brick right here for the flooring, I’ve
never seen that in a properly of real break but in Zinio Ohio you got
anything so good water here good water here
that’s a its a really honestly probably just
within about five years old and then you have the furnace which
is a pretty old the furnace is a pretty old
furnace right here but I can tell you that this thing right here need completely
redone door right here going to the two car detached garage and I don’t show garages on any video that
I do because if you’ve seen one garage pretty much seen them all. So this one’s got a
two-car detached garage. This is all solid oak very very sturdy right here. I told you this
stuff look sound but hear this going up to the
stairway I would hate to carry a bedroom a
bedroom furniture up hear or a bed or anything up here I’m really wouldn’t want
to do that cuz of the spiro of it and then you’ve got three bedrooms you
got the three bedrooms with the hardwood underneath okay see you got
a one bedroom right here nothing too about it. I
don’t understand this whole built ins but that is very very easily
taken out you got the other bedroom ok so you got the
other bedroom right here with nice shag carpet right here Closet, extremely small but not a big
deal in these older homes you have the
slant to the roof right here that’s that’s very typical
for a home this age okay and then this you have the big closet I’m just kidding this is
the bedroom as well so here is the third and final bedroom They did an awesome paint job you got the blue
and purple right there and then you have the closet right there so my question after viewing this property let me tell you the
numbers of this again list price: 54,600
dollars I got it accepted as through a blinded bid of 30,576 dollars. This thing last sold for 133,000 dollars, my estimate on this
property was that it would need thirty to thirty-five
thousand dollars worth of rehab to it. So my question to you
is Deal or No Deal. No deal all day this
property is no deal so even though there’s a great
spread in their this probably means a lot of work the layout is weird in there there’s a lot
of features in there that are just weird to the to the market now and as I
look at the COMPs right here even though this property need to
anywhere between 30 to 35, 40 thousand dollars worth of rehab I
look at the comp slowest thing active up onto the market is 49 9 and
it’s been on the market for 22 days is still hasn’t sold, this one
clearly up in the market from 54 6 I’t is up on the market for 215 days, it is
still active or, so and then you also have all the sold COMPs
so if I was to sell this property I would have to sell somewhere close to ninety thousand so I have to sell it close to
to 90,000 to a 100,000 If I have to theel you this is not a ninety two hundred
thousand dollar market even though the COMPs say that it is okay so the COMPs the sold COMPS, eighty
thousand nine hundred dollars sold in 259 days and there’s another
property from 90,000 sold for 500 45-day so the days on market is way too long on this
it needs way too much work and if I’m going to put thirty to forty
thousand dollars in something I need to make at least fifty thousand
dollars on my return and the numbers are not here on this deal so
no deal never do a deal like this comment
on the video below let me know what you think and I’m out No Deal

21 Comments

  • You didn't appraise the current houses on the list. what if it wasn't up to code and it was in a bad shape. Yours will have an advantage and due to the fact that you will give it a new paint and a fresh look it will sell faster than the those in the market. Is it right or I am missing something?

  • What should the price be in that case?
    Seems like it is just land value?

  • @Systems Saturday   It was looking good at first from the outside but then after the weird layout and small bedrooms I started changing my mind then.
    So that bid that you put in for $30,000 will you have to pay a fine for backing out the deal?

  • Outstanding u Rock, Thats the intel I need to do smart moves,other people
    Dont teach  Thanks

    You Rock,and u are having Fun…………

  • Thank you for showing us a "no-deal". I agree with you that it won't work on this one. This helps a lot as we are always under pressure to do the deal and you always wonder if you took the right decision by saying no-deal. So seeing this helps a lot. Keep the videos coming.

    Btw one request. Can you talk more about how to quit deed the property at the end of the closing to your company. Most states have excise taxes that work like sales tax with every transaction.

  • This was very helpful to see.  I have questioned my numbers/knowledge in the past on things that got accepted and wondered if maybe I was missing out.  This was confirmation that I let the numbers speak for themselves.  Thanks John!!

  • You mean you couldn't even wholesale at that price? 

    what about buying it and selling it…. as-is, on a lease option……there's got to be some worth at that price?

  • 6 Facts to a Real Estate Flip or Flop

  • Great info thanks for sharing.I am enjoying your videos, I am wanting to do deals and I am trying to learn what to look for and what info is important to close a deal rehab or flip.
    Thanks ,
    Pugs

  • would have to put at least a half bath somewhere…and you didn't show the bathroom

  • I originally said deal, but you never told us what the comps were for that neighborhood in the beginning, only the last sold price. I am calling shenanigans on you sir.  Also I am downloading your other videos. Great work.

  • Wow I was thinking deal all along until you got into the comps. 

  • Great teacher. Most people just talk for the benefit of selling their own propaganda. You are show and prove. Thank you sir

  • The reason this is no deal has nothing to do with the condition of this house. The market is not selling and prices are low in the area. Iv'e seen houses with similar quirks be sold for what I thought was outrageous money. But the market supported it. Location is of utmost importance. Iv'e seen people pay through the nose to buy a dog house in a hot neighborhood and Iv'e seen 3500 sf near mansions fail to fetch 200k in a bad location.

  • Good Video.  How about buying it just to show the viewers what a bad deal it is.

  • Well put. I called it before you told us. Looking at a cheap beautiful old world house in Newport tomorrow. I want to start my own business. Finally found a passion that can really take off!

  • in australia we have captial gains tax. so what every investment property you flip government takes 30%. plus real Estate percentage.

  • wow 30k you can't even buy a shack where I live. I was thinking a 100% deal for this house. boy was I wrong.

  • Structurally this property is sound.. Subterranean termites have ate 4 beams underneath

  • Deal

  • Good Video John👍

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