[5-DayForum] Fixer Upper

[Bill Effros]

Danielle,

You have done enough of these to understand what you are seeing if you 
try a 5-Day Sale spending money only on those things you are SURE will 
net you $2 for every $1 spent.

People who do the work themselves can make money on their time.  Usually 
they sell the buyer their time for less than they would charge anyone 
else, but their view is that they couldn't have sold their time to 
anyone else for more.

The trick, of course, is the ability to buy the property for less than 
it is worth initially.  Then, to clean and patch what you've got, trying 
to avoid trading dollars.  I gather you have been successful at this.  
If you start selling using the 5-Day Method I think you will be amazed 
at how much of your profit is derived from being able to buy undervalued 
properties, and how little is derived from improving them.  The faster 
your turn, the safer your investment in a declining or stagnant market, 
and the less likely you are to repeat a mistake if you have made one.  
In a climbing market home price inflation masks the fact that the 
improvements were not worth the money put into them--the house would 
have sold for more, anyhow, 6 months later.

Bill Effros



Loveandmoney05 at aol.com wrote:
> Bill,
>  
> I have fixed all my "fixers," so far.  Currently, I have one that has 
> been mostly gutted but I am tempted to stop work on it soon and see 
> what I can get in a 5-Day.  Also, I have another one I'm buying in a 
> few weeks that isn't a gut-job, but it's disgusting.  The bathroom 
> smells like the worst Medicare nursing home from the 1970s.  I'm 
> thinking of doing a 5-day on that one after a good cleaning.  I'm glad 
> to hear you say that you've been surprised by the outcome as I have a 
> feeling that I could do very well with these.
> If I decide to sell them "as-is" soon, I'll detail it for the Forum.  
> I think it will be fun as I bought these properties at great prices 
> from sellers that were happy to have my cash.  I'm not emotionally 
> attached to the homes, so I can be a great "referee."
>  
> Danielle
>
>
>
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