Flipping Houses
Listen to Steve Bauer as a guest on Inside Real Estate | CJME
Merry Flip-mas!
Merry Flip-mas!
Segment One
Overview of the audio clip below:
- Show topic = flipping houses!
- Think structure first, then cosmetic when flipping houses.
- Experienced Flippers will often buy around this time of year because flippers have a little more time and will make the purchases now.
- If you’re inexperienced, talk to an agent and expert first. A common mistake is to fix a house cosmetically, you’ve spent a bunch of money on it, then you call in the experts and find out the structure is an issue.
- A well-done flip is a very good seller! The neighbourhoods are ideal for buyers… Good flippers do the work right and it is a really good project for them!
- Address the foundation first. You can have the nicest cosmetics, but the walls will be out…. Now all your cosmetic improvements have to be pulled out.
- The trend in Regina, there has been sinking due to dryness. Some houses have been down 8 inches and need to be lifted. New in the last 5-6 years.
- Doors don’t close, windows don’t open. Some of these issues can be very expensive… IE This could be $60,000 to fix. Your profit is gone!
- The recent listing was a flip house and a MAJOR project – Lori called Steve immediately. The location was amazing, backing a park, a big footprint, but the condition was horrible. Lori got Steve’s expert input right away so that she could let buyers know what they need to do before thinking of any cosmetic upgrades. This was a house for someone with a crew who could do an extensive flip.
- Lori didn’t even put up pictures of the home online. She really prepared the buyers walking in about what the expectations are. It was an extensive flip. Far too large for an inexperienced flipper. Before you even start, you need to fix the structure. Steve said the studs in the walls were basically holding the house up! The basement was neglected to the extreme. This is a good project for the right price for someone, but the reno budget would need to be huge.
- In 2014-2015, extensive flooding caused issues and waterproofing were needed. This causes lateral cracks in walls. The last few years have been extremely dry, causing houses to sink. Houses that were built in the ’80s and were fine for decades have piles that are failing and need significant work.
- Steve suggests you control your moisture… in drought conditions water your foundation like you water your garden (not a mucky swamp, but not dry either). In times of extreme precipitation, make sure eavestroughs are clean, shovel the snow around your house, avoid snow traps with bush etc. around the house too.
The House Won’t Fall When The Bones Are Good
Merry Flip-mas!
Segment Two
Overview of the audio clip below:
- Steve Bauer – Lori’s structural expert joins the show.
- Lori calls Steve whenever there is a structural problem. He’s been doing this for decades, works with great engineers, has a professional crew.
- Drought has an extreme effect on structure, just like extreme flooding/high moisture levels can have extreme effects on the structure.
- 99% of structural issues can be repaired. People panic when they see a crack, but most basements in Regina are cracked. You’re not alone.
- Small fixes people can do: IE adjusted teleposts, parging to patch cracks…
- The best route to go is to get an engineer
- People are skeptical about buying homes. Banks and credit people really focus on making sure the structure is good. If the house has sunk 3-4 inches, experts are needed.
- When soil is wet = causes lateral movement because soil pushes in. Dry = sinking, vertical movement.
- Tips – Wet? shovel your snow, make sure your downspouts are out, proper drainage away from the house. Dry? water your foundation. Keep an eye on sidewalks/driveways shifting.
- Tips for being on the market – price accordingly so you’re competitive in this market. Prices are holding. More inventory is on the market now, so less hectic for buyers. Still competing offers to happen. When you hire Lori, you’ll have a true expert with experience providing you with the best advice to bring you top dollar.
- Be reasonable – don’t shop at the top end of your budget. Stay within your comfortable range.
- Financing Tip – Some people will get pre-approved for 90 days, and on day 60 will buy a truck… now you have a financing issue.
- Steve and Lori work together in unison. Working together for 20 years. If you’re looking for renovations – It’s nice to create a deluxe chef’s kitchen, but you need to address the underlying structure. AAA Solid Foundation will provide you with the best options for your ROI on your structure.