Updated: Jan 30, 2020
Getting Started Out of State
Today fixing and flipping properties is hotter than ever. With seasoned and novice investors all looking to find their next, or first deal, it can be tough to locate a house of your own to renovate due to fierce competition. Fierce may be an understatement!
We decided to spend our time looking out of state. Almost 2,000 miles away at that. Why? Well, because we’re a startup company, founded April of 2018, with limited financial resources. We’re based in the San Francisco Bay Area - One of the most expensive housing markets in the country. Homes in the Bay Area, including:
And public auctions
They are ridiculously overpriced! I remember finding a house in a small city called Lafayette that had such severe fire damage it had to be knocked down and rebuilt. The home still sold for over half a million dollars! Ridiculous...
We chose to look in Tennessee for one primary reason. I have family out there who own a property management business. They have been working in real estate for over 30 years and know Tennessee like the back of their hands. Not to mention, housing is far more affordable.
Our partnership with Stevens Realty is what enables us to operate effectively in the Tennessee markets. They have a strong presence in:
Locating 505 Burns Road in Knoxville, TN
Finding our first project, 505 Burns Rd, took a substantial amount of time browsing through the MLS. Every day we took time to browse the latest listings that hit the market. We would look at every new listing in:
And the surrounding areas within 30 miles
We were waiting for the right opportunity to show up. Weeks scrubbing the MLS felt like an eternity!
Submitting offers was non-stop. We had our agents placing offers left and right. At our peak, we were presenting 20 offers or more a week. Our agents were analyzing even more opportunities, well over 50 per week, and the majority of them we wound up not placing bids on.
A few common reasons we’d pass on an opportunity are:
The property is too old.