Photos By Jeanie HoholinkJeanie Hoholik of Keller Williams told me this story, and if you go to this link you can get another account--from Hoholik's blog--about one of the houses flipped by her client.
The flipper in question was a high-paid executive for a well-known corporation, which just so happens to have its corporate headquarters here in Minnesota. She was making good money, and her job involved going to various branches of the business to figure out what was wrong and make it right. She was good at her job, but longed to take a new life and career direction.
Her new career direction happened because of watching a-few-too-many episodes of television shows about house flipping. She thought, "I totally could do that!"
So she took fate in her hands and bought a house in North Minneapolis, at 2319 West Broadway, to be specific. The house was listed at $74,900 but the would-be flipper got the house for $62,000. After improving the house, she sold it for $139,000, though it was originally listed at less--$133,900.
Well, I know the feeling, kind of. Once you taste the intoxicating nectar of profitable flipping, it's hard to stop.
Gangsters Mess Up Her Goals
The flipper next bought a house at a location I will not disclose on Irving Ave. N. She bought the house for $70,000 though it was listed at $74,000. This time, she didn't have such good luck, mostly because "gangsters" right across the street were doing their (expletive) (expletive) drug deals and generally making life (expletive).
(Those are my expletives, not hers. For the record)
The flipper managed to find a buyer, a tough old veteran of the armed forces who works at Fort Snelling Cemetery. He wasn't scared of the so-called "gangsters." He bought the house for $95,000 and moved in.
Back On Her Feet, Applying Lessons Learned
The flipper was now determined to limit her house purchases to certain areas within North Minneapolis, and avoid "gangster territory." She learned to do more neighborhood research, such as looking at crime maps...
Her next deal at 3323 Morgan Ave. N. went a lot better. The house was originally listed at $79,900 but the flipper got it for $49,500. She sold it for $137,000. Life was good again. She could make a living like this, despite mistakes with the last property.
The flipper next purchased 3346 Girard Ave. N., originally listed at $83,500. She got the house for a mere $49,000, roughly what she'd paid for the previous house on Morgan Ave. N.
Posse!!!!!!!!!!!
By this time, the flipper had a posse; a trusted group of contractors who performed work well and charged reasonable prices. Of course, the flipper knew how to perform some of the renovations herself, and all the time she was learning.
The flipper and her "contractor posse" poured their efforts into 3346 Girard Ave. N.
The house is now ready. The photos show what it has become. If you want to buy the house, it is listed by Jeanie Hoholik of Keller Williams.
I have purchased a home from Jeanne's client that you mentioned sold the property on Girard. I would highly recommend a side contract that states that if the remodeling was done so poorly that it deteriorates within one year of the purchase of the home, that she (the seller) would pay for it out of her own pocket.
ReplyDeleteEither that, or do not buy a home from a flipper/renovator unless you are okay with re-doing MUCH of the work.
A few of the FACTUAL issues we've had since our purchase of a home from the flipper who hired CRAPPY contractors to do some of the renovations:
1) Our pretty tiled kitchen floor has cracks all over it, the grout is coming out from the seams EVERYWHERE......
2) We have a new deck.......great right? Well, they built it over a huge hole that slants toward our foundation which equals = wet basement, ruined carpeting and padding, and a mold issue with a lovely stench.
3) Our brand new roof was done so poorly that it leaked when it rained during our first thunderstorm.
4) Oh, Not only is the grout in the kitchen shot, but the grout is coming out in all of the bathrooms that were re-done as well.
5) We have slants on our brand new roof that caused water to leak next to the house instead of down into the cheap gutters - so, water came in through our upstairs window, through the floor and the first floor ceiling. This was the only expense we received help with via our homeowners insurance. When we approached the flipper to discuss the issues, we were blown off. By the time mediation would have gone through we needed to have the repairs done.
I am kicking myself for not pursuing legal action against her. I will be naming her name on my own blog coming soon. (I will need to check with my attorney to be sure that what I say is okay first)
I'll bet JNS won't do a follow up post based on the comments from the last person who bought that house. Remember information wants to be free!
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