Joe Homs bought a condo for $650,000 planning to wholesale it, but got no offers. He spent $65,000 on kitchen, flooring, and curb appeal instead, sold it for full price in six days, and closed in fifteen. He walks through his three-plan framework for when deals don't go as expected.
Chapters
We purchased this condo for $650,000, ARV $950,000. We have a Plan A, we're at Plan B. You never want to go to Plan C. I'm going to walk you through what we did with the rehab and let you know at the end of the day what we sold it for. When we first got this property, the plan was simple: list it as is and cash out. The comps looked solid, the market seemed healthy, But the offers, either lowball or nonexistent. Instead of spending a lot of time chasing the market, we decided to pivot. We decided, okay, let's look at the numbers. How much is it going to cost to rehab this home, put it back on the market, and develop the new ARV? Which is what we did. We focused on 3 high-impact areas: kitchen, flooring, and curb appeal. No additions, no overbuilding, just smart market-driven upgrades. Total cost, Around $65,000. Timeframe, just under 7 weeks. After this fantastic flip from our rehabbers that we ended up doing, we listed it, we got a full price offer in 6 days and closed escrow in 15 days. Sometimes the market tells you that you need to listen and adapt, which is what we did. And that's where the profit lives. Flipping is not about getting an emotional attachment to a house or the deal itself. It is about pivoting if you need to pivot. We had to pivot in this deal because things changed and the market changed. So here we are. If you're new to real estate, you need to be able to run your numbers correctly and be sure and confident. This one had Plan A, Plan B, and what I call Plan C. Plan A was to literally just wholesale this out for a quick profit. That didn't work, so we ended up rehabbing the property and ended up selling it in 6 days. Plan C would have been to hold the property as a rental, but I'm in California and that's just not penciling out in California. So thank God we ended up at Plan B and we sold the property. If you want to evaluate deals like this, please click on the link below and I can show you all the shortcuts that I use to get to this point and save you lots of time and save you lots of money.
