LIPSTICK ON A PIG #realestate #realestateagents #entrepreneur #flip #pig

9 Sept 2024 · 1 min

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1:09

Steve D Valentine explains a real-estate approach he calls 'lipstick on a pig' — doing minimal, cosmetic work (cleaning, decluttering, paint, light flooring) instead of full renovations, then reselling. He recounts a case study where the firm bought a house (speech: '475'), performed light fixes, relisted it 'right around 625', and weighed that choice against a full renovation that might push value toward 700,000 at an estimated $100,000 investment and about $75,000 profit after sale costs. The segment emphasizes choosing smaller flips when markets are uncertain.

Questions this video answers

"We actually bought this house for 475."

He said he put it back on the market 'for right around 625.'

He described a scenario: 'if we can get the house to 700,000, it's going to cost us 100,000.'

He estimated 'maybe a $75,000 profit after cost of sale.'

Chapters

This is what we call lipstick on a pig. So let's take a tour. Here's what we did to the property. We actually bought this house for 475. That included a commission to our company for buying the property. And then we went through the process of looking at the remodel, and do we want to do it, not want to do it. So we didn't. And we just went and did Lipstick on a pig, which is we cleaned up this lot, and then we went through and decluttered the house, painted it, did a little bit of flooring, and then just put it back on the market for right around 625. So it's kind of what we call a whole tail. So sometimes we don't always go through this process of having to do these big renovations. So here's the process we went through. We had to look at the numbers and say, hey, if we can get the house to 700,000, it's going to cost us 100,000, right? So we're going to have to invest 100,000, and it would produce maybe a $75,000 profit after cost of sale. And the other things that happen, if there's no hiccups now, you know, we rewind and look at it. We also spread it out and said, hey, what happens if we just do minor stuff and sell it as is on the open market, rather than doing the full renovation in a market that's a little bit dicey, Right. So we chose to keep the price down, do enough to where a new buyer can come in and look at the project and it's priced well, those types of things. So not everything has to be jumped into a flip.