The Darth Vader of Real Estate

Bidding on, securing, closing and rehabbing foreclosure properties aren't the only challenges that agents and rehabbers face. Getting in to view these properties often poses problems as well. I have what I like to call a survival kit for foreclosures: Heavy Mag Flashlight with LED guts (much brighter), Screwdriver, Cell Phone (for emergency calls) and often times a Vent mask/Respirator. The last item that was listed, the vent mask is the most important for me. I am deathly allergic to mold and often times foreclosures are crawling with it. What happens is this: 1.the house sits vacant 2. thieves steal the copper 3. thieves don't turn off the water before stealing plumbing and finally, 4.mold grows all over the place. Most foreclosure agents and banks NOW make people aware of the presence mold and you have to sign a waiver to view the property. When I have to sign one of these waivers, I borrow the mask from Leo at Starke go right in.

Funny thing is, mold isn't the only thing that you have to get the mask for. Sometimes, dirty people live in the houses and just don't take care of things. Starke's new little gingerbread in Tower Grove South "Mimi", had a smell that we just couldn't find the source of upon initial inspection. Well, he did find the smell after purchase, and it was the fridge. Needless to say, he had to use the vent mask to clean it out. I had a friend that helped clean up Katrina and she was told, "Whatever you do DON'T OPEN THE FRIDGE. You know what people do when they are told "don't"? Someone always DOES.

The fridge is now cleaned out, and has been removed from Mimi. Shortly after that the entire kitchen was removed. More to come on that!

The Gamble...

Well, it has finally happened, there are two new projects on the books and a possible third. After what seemed like a long lag, things are finally rolling again at STARKE, Inc. These new houses are awesome, each of them are in the Tower Grove South Neighborhood and very unique. How we happened upon these properties is the same old story, LUCK and a bluff. I say "luck" because you have to be the one to see, go look and then act before anyone else. You also have to gamble and try to make your offer the most attractive without cutting too deep into your margins and overpaying. The Mini Castle whom we will call "Mini" had multiple offers on her as soon as she hit the market. In fact, my sisters friend who is also a rehabber was viewing it the same time we were. Running into other rehabbers in a prospective property is kinda tense. I like to compare it to an old fashioned stare down in a high stakes poker match. The goal for each rehabber is to not give away their position on the property and win the pot.

Negotiating on an in demand foreclosure is truly a manipulation of many factors. Time, you have to be the first one to draw and the first one to close. Money, you should always try to have cash. Relationships, it helps to know the person who has the property up for sale. If you have worked with the person before you know what they like to look for in an offer. Knowledge, your rehabber has to know what they are looking at and be comfortable with it, because more often than not you won't be able to have proper inspections. I work with a rehabber, STARKE that usually only has one inspection done....the sewer camera. In the sewer is where real dangers to profit margins lie. If you as a team know these factors and can work them, you can end up with awesome properties.

Over the next few weeks I will be introducing you to the new properties, new regulations and new rehabbing shenanigans as we move forward towards two new completed projects!

Terra and her final photoshoot!

Well,  I just got back from Israel and Terra sold right before I left. I was in a hurry to get it closed and complete, so I didn't have time to update you all. As a matter a fact, since she went under contract before hitting the MLS or having any cool staging I didn't have time to throw one of our rockstar style parties welcoming the new beauty to the neighborhood. Don't worry though, STARKE is working on 2 more in the neighborhood and I promise we will have a wine/vodka/BBQ free for all at one of those properties.

Now that it is closed I can tell you that this was located in the 4000 block of Wyoming, another hit for Tower Grove South! Final selling price? $196,000

Here are her final photos for those that want to see:

http://maris.rapmls.com/scripts/mgrqispi.dll?APPNAME=Gstl&PRGNAME=MLSLogin&ARGUMENT=zj67ndlvoAJJl0NDuQgXVOya7PHTzxKyqZ4hhlvpYkU%3D&KeyRid=1

I promise more shenanigans are to come! We found porn in the most recent rehab. No, I am not going to show it to you.

Terra is looking good

Terra had a buyer before we were ever finished or put her on the market. Not a bad record for Starke, who sold and closed on Ginger last Monday. Put out a good product, and get good buyers. Do good business, and business is good to you.Terra is what everybody is looking for. She is the last unicorn, so to speak. 3 bed/ 1.5 bath, Tower Grove South and a 2 car garage for 210K. Since Circa sells so much in that area, finding a buyer wasn't hard.

So, that brings us to a very good logistical question....How do you schedule closing and inspections on something that isn't yet finished? You write in the contract that NONE of the contingencies are to begin until completion. Notice of completion must be given to buyer's agent in writing. Well, that is at least how we did it this time.

So, now we are on a race to finish and it seems like the closer we get, the further away we actually are. I am not sure why, or even how this rule applies but: The LAST 10% OF THE PROJECT TAKES 90% OF THE TIME. At least I think it does, if you are doing it right. There are always little bumps in the wall that need smoothing, a line that needs to be sharpened or a fixture the plumber forgot to seal. Those finishing touches make a huge difference. I can't stress enough....STAGING STAGING STAGING. It does a property and your pocket good.

In all honesty, this time around Mother Nature has been our biggest enemy. You can't finish things outside when she is dumping gallons of water on your head. Try cleaning up the inside with people tracking mud all over the floors. Some days are just a wash...Literally. I thought last night I may dress up in my best island style sarong and do an ANTI RAIN DANCE, but it was raining....So, I stayed inside. In between drops I have been running outside, screaming at the sky and shaking a fist, to no avail. So, I figured I would provide you with pretty pictures to help the day pass.

HAPPY MONDAY!

Pay for it in Advance and get it... NEVER

Important lesson learned. Early on in the project we head to Home Depot to pick out things like toilets, sinks, drawer pulls, lighting and various other things. There are 3 reasons for things being done this way...

1. You get a discount when you buy in bulk.
2. You pick things out at the same time so they all match or at least have a theme
3. Pay in advance and pick up when needed

What we learned this time around was....You can order it, pay for it and NOT be guaranteed to be able to pick it up. That is right, I said it....HOME DEPOT will not hold things for you that have ordered in advance and paid for. This was more than likely always the policy and we just never caught on until now. On Ginger it really affected us. They were out of our ceiling fans, toilet and chandelier causing us to scramble to pick out new stuff that is suitable and goes with the other stuff already installed. I am sure that it doesn't seem like a big deal, but it is. It takes quite a while to pick things out and when we have to go back to the drawing board in the final completion phase it SUCKS!

Where were we?

In my frantic run around to get people what they need for the tax credit I have been a bit lax in blogging. Now, I am back and have plenty a story to get you caught up on. Ginger went on the market on Easter weekend and people scoffed at the idea of holding a Saturday open house. Who is going to shop for a home on Easter weekend, right? I'll tell you who...Someone VERY serious. That Saturday we held the open and only 2 groups came through. Just two, and I was bummed. Seriously. Not to be kept down for long though we threw a party for all the people who helped get Ginger to market and personal friends of the Starke, Inc. gang. During the party and in between flowing cups of wine and mini cheesecakes we received an offer. Just one, one is all it takes.

The following day, Easter: I walk out of my house with contract at hand to meet the owner of Starke for brunch. I could tell you where, but then I would have to kill you...Let's just say it is one of my favorite CWE spots. He signed the contract on the spot. I can't tell you how much it was for, because we haven't closed yet and that would be BAD. Still, I am very proud to say that our list price was one of the highest in that area for what we had and I am sure we will be one of the highest closed sales. We pushed the envelope a bit, but put out a phenomenal product.

We close on Monday and I am proud. Proud of the team and that little house. We made it past 2 appraisals, a Laclede inspection and City occupancy to become legends (in our own minds).

HERE IS THE FINISHED PRODUCT, ENJOY! http://www.3929meramec.com/

WTF?

I have been slacking quite a bit in the blog department. So, I thought I would ease back into it with this lovely picture...What The Flip? You may wonder how I find this stuff. Honestly, I must tell you the bulk of these great pics are the spoils from the hunt for a new project! I have been searching high and low, with little luck up until now. This garage made me laugh though, and eased the pain caused by my fruitless searches. Apparently, this little beak on the front of this garage was added to accommodate the owner's long front ended car. So, anyone with a full sized, '76 Caddy you need to keep, look on Keokuk. Just try to ignore the fun house style floors. I mean, who cares if you have a garage that allows you to drive such a fine ride?!
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