With The Horsey House now sold, The Leak House and The Wrong House under contract to sell in the next two weeks and The Haggle House listed for sale, we’ve essentially run out of work to do on our own properties.
We’ve made quite a few offers over the past couple weeks, but haven’t gotten anything under contract. We’re not surprised — over the past several years, we’ve noticed that this time of year there tends to be a lot of competition for REOs, and most are being bid up higher than what we’re willing to pay. That said, many of our offers have been on short sales, which take several weeks to get a response from the lender, so we have several potential deals in the pipeline should those offers get accepted.
In the meantime, we’ve been keeping busy providing support to other investors in our area. Over the years, we’ve had several investors ask if we’d help them with their rehabs — everything from helping to analyze the deal to putting together a Scope Of Work to picking out rehab materials to getting contractor bids to managing the project to completion. We finally agreed to do this for a local investor who had three projects in our area and have completed those projects over the past two months.
I’m happy to say that the investor seems to be very happy with our help, as he’s asked us to do three more projects of his over the summer. In addition, we’ve talked to other investors about doing the same for them, and will likely have a couple additional projects this summer. I like this business model, as not only does this allow us to keep busy (which is especially important for my project manager, as much of his salary is based on commission), but it also allows us to keep our contractors busy, as we generally retain them to do the work on these projects.
If there is enough interest, we may decide to expand this part of our business in the future…
Also, my wife agreed to list and market a house for an investor friend of ours who just finished a rehab in our area. She was planning to stage his property for him anyway, and he asked if she’d be willing to do the listing as well, as his agent is on the other side of town. She gets this request all the time, and has always said no, as she has very little interest in selling other investor’s properties; but, this is an investor who has done a lot for us recently, and she was happy to do this for him.
The best part is that, after making several phone calls and sending some marketing emails to local agents we typically work with, she was able to get a full-price offer after about 3 days on the market. I don’t expect she’ll be doing much of this in the future (she spends a lot more time listing/marketing than I’m guessing most agents out there do, and she just doesn’t make enough money doing it that it’s worth it for her to take time away from other things), but we’re always glad when we can help other investors who have helped us.
Lastly, I’ve been working part-time on getting my real estate license for about a year now, and will probably take the state exam this week. I don’t know if having my license will change anything about our business, but I’m one of those people who likes to try different things, and I like the idea of being able to consider other aspects of investing without having to ask my wife to do a bunch of random work as the only licensed agent in the family.