Pro Tips from the Property Flippers November 2024 Edition
Home Improvements by Direct
You won't find much transactional information on the buying or selling side of this mixed-use flip on the typical real estate sources like MLS, LoopNet, or Zillow because perhaps it was a deal that only happened because a guy knew a guy that knew a guy.
Bob Lillie, owner of Home Improvements by Direct, recounts his story about the unintended acquisition and sale of this mixed-use flip. It is a tale that certainly gives credence to the power of networking.
Rewinding 25 years, Bob launched his general contracting business with the goal of helping homeowners and investors, rather than being an investor himself. A few years into his business, he observed that more and more of his colleagues and employees were successfully venturing into property flipping. In 2005, he decided to attempt his first flip in Price Hill. Overall, it went well as he had the expertise and team necessary to make it profitable. However, it took another five years before he tried property flipping again because his home improvement business was growing and required more of his focus. A similar pattern emerged after this flip, and it would be another eight years or so before he dabbled in flipping once more.
Through years of consistence hard work and dedication to customer satisfaction, Bob's network of investors accumulated to the point where it is has really fueled what has now become a full-fledged dual business model of contracting and flipping real estate.
About a year and half ago, an investor connected to Bob's network requested a quote for work on a mixed-use property at 4210 Harrison Ave. The building was in terrible condition, having been a bar that shuttered years prior, with a dilapidated four-bedroom unit upstairs and a separate studio apartment lacking proper plumbing. To further complicate the matter, the manner in which the driveways were configured on the site caused traffic issues for the Township, County, and public. Bob started discussing the property with his investor client and soon, to both of their surprise, they were negotiation a sale of the building. Bob's intention was to hold the building, renovate the former bar space for his growing office/ showroom and rehab the 2 apartments.
Due to the property's characteristics, zoning at both the township and county levels needed to be addressed. Bob's amicable approach and strategic insight successfully persuaded both bureaucracies when he proposed eliminating the entrance from Harrison, which was causing traffic problems, and further reducing the traffic count to the location due to the nature of the business intended for the space. It was as win for all!
Bob and his crew beautifully renovated the space maintaining the 2 apartments and 1 commercial space layout. During this project, Bob networked 2 more single family off market deals.
As the renovation at 4210 Harrison was wrapping up and tenants were in place, again from Bob's network, along came an unexpected opportunity to sell the property via land contract. An investor from Bob's network, who had been interested in the building even before Bob acquired it, learned that Bob had renovated the space. Impressed by the completed project, he proposed to purchase the property. Bob determined it was the right moment and price to sell the building to free up capital for further property investing.
The next stage in Bob's growth is to bring his daughter on fulltime as an office manager to help promote and strengthen his growing multi-facetted business.
Tips from the Flipper
When I asked Bob for some tips to pass along to the community, he had this to say:
Do everything by the book. Take no short cuts. Please the bureaucracy. If you do things right, you get bees with honey.
Again, through Bob's network he was referred to some top talent to help with the project.
I gained the best crew members. It is so important to have skilled people you trust working with you.
Projects like this are so exciting because it you get to see the total transformation come alive before your eyes little by little.
The Financer
This series has featured the value of networking in the real estate business time and time again. Hearing Bob tell his story of how networking has evolved his business to unexpected heights is so encouraging. A moral of the story not to be overlooked is Bob's character and ethics have been rewarded.
Spring Valley is your local community bank offering our investors SOLUTIONS:
Quick decisions with in-house underwriting
Certainty to close
Availability of real estate & banking experts to listen & stay connected
Flexible financing options for flips, refis & income producing properties
Dependability of an established banking institution
If you know an investor that may benefit from the flipping advise of seasoned professionals, please share this blog with them.
Home Improvements by Direct partnered with Spring Valley to complete the renovation at
4210 Harrison Ave, Delhi TWP, Ohio.
Purchased for $160,000 this professional renovation resulted in a quick and unexpected land contract.
Home Improvements by Direct vendors used on this project:
Aqua Tech Mechanicals
Ford Electric
Luis Leon Drywall & Painting
A monthly series showcasing tips from professional property flippers partnering with Spring Valley.
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