Her story is pretty amazing. In order to understand her situation, I must brief you on her current schedule. She is married, has three children, does appraisals, is studying for her broker’s license, and still found the time and energy to invest in real estate.
She purchased her first property for $58K, invested $17K in repairs, and sold it for $115K. She made $29K in profit. That’s the snapshot of her first deal. Read on for the full story.
I asked Laura a few general questions about her endeavourers. I edited portions of her responses for clarity and brevity. Enjoy! Don’t forget to respond below.
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First Deal: Green Valley, CA
Purchased: $58K
Repairs: $17K
Sell price: $115K
Profit: $29K
JT: Tell me about your first deal.
Laura: I walked away from this house when I was told I needed a septic tank. Then I re-ran the comps and realized I could still make money if I replaced the septic tank so I went back in. The house was pretty thrashed. We replaced the kitchen, the flooring, much of the drywall and texture, removed two illegal additions off of the back of the house and the side of the garage, painted inside and out, and replaced the chimney. We went over budget but were able to sell the house higher than projected. We didn’t need a new septic tank after all.
JT: Did you learn anything?
Laura: I learned to talk to more than one expert in a particular field. The plumber who originally came to check the septic tank immediately said it was bad and needed to be replaced. After talking to a neighbor, I decided to get a second opinion. I found out that there are two sides to a septic tank and that the only way to know if the thing is bad is to check both sides! The first plumber didn't do that. The second plumber said the concrete tank was fine, it just needed repairs. Getting a second opinion saved approximately $6K. Now, if a house is on a septic system, I will always add a septic tank replacement to the cost of repairs to be safe.
Second Deal: Lake Elizabeth, CA
Purchased: $124K
Repairs (Projected): $30K
Sell price (Projected): $230K
Profit (Projected): $76K
JT: Tell me about your second deal.
Laura: We are now on our second project. The multiple listing services stated that the house had various code violations and that it was a cash-only sale. When we first looked at this one, my husband said it was way more work than he wanted to get into. I, being a certified appraiser, thought it was over priced so we walked away. A week later, I saw that a perfect comp on the same street was now a pending sale. According to the agent, it was selling for $100K more than our house! That blew my over priced theory out the door! We ended up getting it for $123,900.
Our projected repair costs are $30K and we anticipate selling it for $230K. We had to get a hard money loan for the repairs so the costs on this one will be more. Hard money is very expensive! My good plumber told me that this one definitely needs a new septic tank. Remember to always add a septic tank replacement cost. I'll let you know how this one turns out!
Contact Information:
Name: Laura Chiavassa
Email: lchiavassa6 at gmail.com
(To protect Laura’s email from auto spam, we used “at” instead of the @ symbol, simply substitute “at” with “@” when emailing her)
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