that corner of the economy insulated the region from the worst effects of the Great Recession. The crash in oil prices turns that dynamic on its head. “What will be really interesting to see is the next 12 to 18 months,” Haxel said. While Oklahoma’s history of severe weather can “keep you on our toes,” she said, the city actually enjoys sunshine most of the year. And sometimes the weather creates an opportunity: The Haxels are build- ing a brand new house on a “tornado lot”—a property made vacant by a twist- er. Their contracting partner mentioned the opportunity to buy a lot at a good price, and Jake and Stephany decided it was too good to pass up. “We just decided, why not?” Haxel said. “Let’s try it.” They broke ground on the house in January, and by the time you read this, the construction should be complete. The Haxels are already thinking about pursu- ing other tornado lots—it’s a way to help rebuild neighborhoods that have been devastated by powerful storms. HOWTOMAKE THE FLIPTO FLIPPING The Haxels are experienced investors, but they seriously got into flipping only a few years ago. “We had an opportunity to purchase a home—it fell in our laps, actually,” Stephany Haxel said. But the deal took a long time to complete, thanks to legal issues and the involvement of a trust. The Haxels ulti- mately decided to flip the property. And while they appreciate the steady income of the properties they hold— some of their tenants have been with them for years—the Haxels enjoyed the “immediate gratification” of improving the property and quickly selling it. Their advice for others interested in flipping? • Make sure you have a budget. If you spend too much on upgrades and improvements that people shopping in that neighborhood won’t pay for, you’re going to cut into (or worse, eliminate)
RESOURCES BUREAU OF LABOR STATISTICS www.bls.gov/eag/eag.ok.htm - THE CITY OF OKLAHOMA CITY www.okc.gov 405-297-2535 -
OKLAHOMA CITY CHAMBER OF COMMERCE www.okcchamber.com 405-297-8900 OKLAHOMA CITY CONVENTION AND VISITORS BUREAU www.visitokc.com 800-225-5652
CORELOGIC www.corelogic.com 866-873-3651 -
OKLAHOMA DEPARTMENT OF LABOR www.ok.gov/odol 405-521-6100
GREATER OKLAHOMA CITY ECONOMIC DEVELOPMENT www.greateroklahomacity.com 405-297-8900 - LOCAL MARKET MONITOR www.localmarketmonitor.com 800-881-8653 - OKC REAL ESTATE INVESTORS ASSOCIATION www.okcreia.com 405-759-0712
REALTYTRAC www.realtytrac.com 800-550-4802
TRULIA www.trulia.com
U.S. CENSUS – QUICK FACTS www.census.gov/quickfacts/table/ PST045215/4055000
ZILLOW www.zillow.com
ties where an investor can quickly add value. “Our model is we target distressed prop- erties that we can fix up and flip and make a profit,” Stephany Haxel said. WHATMAKES OKC GREAT There’s a lot to like about Oklahoma City. According to the Berkeley Terner Center for Housing Innovation, the metro is one of most affordable for housing. It was No. 2 onWalletHub’s list of healthiest housing markets—in particular, it has good access to financing, low down payments and lower
percentage of underwater mortgages. And Entrepreneur magazine put OKC at the top of its list for great cities to start a business, thanks to its low cost of living and favorable conditions for small business lending. “The people here are friendly,” Stephany Haxel said. “It’s affordable. Even when I drove from Norman to Oklahoma City, my commute was 20 minutes or less.” The biggest question hanging over the region is how the disruption in oil prices will affect the housing market, Haxel said. Oil is a huge employer in Oklahoma, and
112 | think realty magazine | may :: june 2016
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