Our operating philosophy: When it comes to finding, fixing and flipping homes as a business, we cannot afford to rely on strictly one individual’s judgment. We will employ, on a deal by deal basis, an architect, an interior designer, and a landscape designer. A Virginia Tech study, which surveyed homes in 7 states, showed that high-quality landscaping can increase the value of a home as much as 12%. The various contractors and specialists will execute their plans under our supervision. The BIG LESSON I HAVE LEARNED in the home selling business is: pay the extra money for a professional, do not depend on your own personal preferences. We will pay a 10% performance bonus at the end of the flip to all our collaborators. This will give us the upper hand in gathering the best talent.
Purchasing and Marketing: This is a tough business. Most of the profit is created when we purchase. Some individuals are terrific at sniffing out a great deal. I have had my successes and failures, so we will be working alongside finders and other Realtors, and I will be looking myself for our deals. One of the main expenses in flipping is the holding and marketing period after completion. I will be closely monitoring this aspect, and hopefully bringing us a substantial savings by pre-marketing the properties. When you have a home for sale you place a sign in the front yard, and have the ability to hold open houses. We will take full advantage by continuously marketing and sharing information about our Eco-Flip during and after renovation.
Location: Fortunately for us, I live right in the heart of the Temecula Valley, located in Riverside County, California. The Temecula Valley is roughly 1.25 hours inland from Los Angeles, Orange County and San Diego. A $600,000 home in these cities is $400,000 here. The Temecula valley experiences a constant stream of buyers priced out of the coastal markets. Our fix and flip price range will be from $250,000 to $500,000. When possible we will try to be under the FHA, ($379,000), and Veterans Administration pricing guidelines, enabling our buyers to use 3.5% and ZERO down payment loans.