By Liz McKinley
The first flip my brother, Max McKinley, and I completed was this adorable little brick ranch on Bountiful Lane in Castle Hayne, NC. We dubbed it the “Bountiful Ranch,” and the name held up to expectations—the project was bountiful in excitement, bountiful in family time, bountiful in support, bountiful in profit, and bountiful in adventures. We couldn’t have asked for a better first flip.
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So, what made our first flip so successful?
1. Due diligence:
We bought our property at the local foreclosure auction. Before bidding, we spent days researching the property, its history, and the occupants. Using public records, available at the local courthouse and online, we were able to determine the details of the foreclosure, the names of the likely occupants, and information on any liens against the property. We also ordered a title search online to check against the information that we had collected. When buying a foreclosure, the bank gets the easy road out, and you are left with the responsibility of evicting the occupant. We made sure that we researched all of the potential angles for doing this including “cash for keys” (paying the occupant to leave in a timely fashion) and legal removal through the sheriff’s department. All of this was a huge learning curve, but the hours we put into it were more than worth it.
2. Project management:
Max was able to be the on-site project manager. Having a person assigned to the job site was greatly beneficial. He was able to keep the property clean, meet with subcontractors, buy materials as needed, and ensure that jobs were completed correctly.
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3. Scheduling:
Before beginning the project, we chose a target listing date and scheduled backwards from there. Nearly every task (from HVAC installation to putting up a new mailbox) was laid out on a schedule. It was designed with flexibility so that items that were not completed during their assigned week could easily be pushed forward. There was a week built in towards the end for “catch up” so that we could absorb any unexpected surprises. Thankfully, EVERYTHING went according to plan and we actually finished a 6-week remodel in about 30 days.
4. Labor and subcontractors:
We chose a team of subcontractors that we trusted. Having a team that will show up on time, complete the job, and return for punch-list items is incredibly important.
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5. Materials and pricing:
Sourcing the most economically efficient materials helped reduce our costs. While we didn’t want to cut any corners, we also wanted to make sure we got the best prices possible. This was accomplished by price comparing, using coupons, looking for clearance items, and buying used items off Craigslist and Facebook Marketplace.
If you decide to take on a flip, be sure to plan, plan, plan. And, hopefully, your first flip will be everything you want it to be and more. Ours sure was.
Liz McKinley & Max McKinley
Move with McKinley
Liz McKinley and her brother, Max McKinley, are both Brokers at Nest Realty Wilmington. An educator at heart, Liz’s experience as a department chair at a local high school, authoring numerous publications and being part of multiple leadership programs proves that she has the coordinating and management skills that every successful real estate broker needs.