Fieldtrip 2017, January 21st
- Lenska´s Fieldtrips are in their 8th consecutive year and have helped hundreds of newbies & seasoned investors. Be one of them! -
Our first Fieldtrip of the year took us to La Mesa. We were around 35 people who were ready to get a head start of learning in 2017. We started with one of Leo Clark’s recent development projects – an old house sitting on a huge lot. The plan is to renovate the house (major renovation, taking it down to the stubs) and subdivide the lot into three lots to build three new houses.
Key Learning 1: Be creative in your projects! Think outside of the usual Fix&Flip to create profitable projects.
Afterwards we carpooled to our second stop, which was a recently fixed-up house. After calculating the numbers and gathering all the information, we found out that the people who took on this flip might be loosing money! Lenska & Leo explained that the price you are paying for this fixer makes or breaks the deal. In this case, the people way overpaid for the house.
Key Learning 2: Paying the right price makes or breaks a profitable flip.
Our last two stops were two different fixers that just came on the market – and are already gone by now!
After learning that paying the right price is key, Lenska & Leo showed us how to calculate the offer price. Starting with the ARV (After Repair Value), we subtracted all the expenses (there are more costs to it than the TV-Shows will have you believe!) and built in a profit margin of 10%. Voila, the offer price should be around $313k, which is way lower than the recent price on the MLS: $379k.
Key Learning 3: Knowing and calculating your numbers is crucial to make the right offer.
After our heads were spinning from so much information, the hardcore learners got together at the nearest Chili´s for lunch – already a tradition – and enjoyed the Saturday afternoon with good food, Margarita´s and lots of networking.
Don´t miss out on more great insights and come join us on every third Saturday each month!