Renovation Spotlight: Full-Speed Flipping
INVESTOR'S DEAL NOTES:
Purchase Price: $125,000 Rehab & Holding Costs (including agent fees): $100,000 List Price: $299,000 Expected Net: $50,000* *projected net value allows for potential market shifts between points of publication and sale.
Exterior after
Kitchen before
Kitchen/Living area after
Wooley places a high value on curb appeal
W ooley’s most recent deal is a 2,000-square-foot Texas home that she made over from the foundation up in just over two months. “We had to do basically everything to this one: foundation, new roof, new windows, all new flooring, opened up a wall in the galley kitchen, the works!” Wooley said. “I think this is one of our best before-and-after projects.”
and is willing to put her money on it when the opportunity arises. For this flip, she invested in cedar for the front door and porch posts and in a custom chandelier for porch lighting. “We like to spend any extra money in the budget on fixtures like that when we can because they show really well,” she explained.
The galley kitchen was cramped, narrow, and dark, so Wooley’s team pulled out most of a wall to create additional bar seating and let more light into the entire area. “The kitchen and living room areas are very open and bright now, compared to what they were. This is my favorite room for sure,” Wooley said. Looking back on the project, Wooley noted one of the few things she might have done differently is create a “pop” of color over the oven in the kitchen. “I would maybe have given the tile a more decorative look to keep everything from blending in there,” she said.
Exterior before
Kitchen after
asking these hard questions a rewarding experience instead of an awful one,” she said. The company does not just do wholesale deals; they also may do subject-to deals, fix-and-flips, and even convert some properties to short- or long-term rentals. These days, her favorite leads are referrals. “I hear it all the time: ‘My husband and I are divorcing, and I wouldn’t trust anyone else with this sale,’ or ‘My friend sold their house to you last year so can you just come look at it?’ I know those people are not usually even
inviting my competition in, and that is so valuable to me. I am sorry they’re having a hard time, but I am so proud to know they trust me to help and that I can come in and help,” she said. “It confirms that we are treating people with the respect and kindness they deserve.”
and her company. With an ambitious (but clearly achievable) goal of doing 200 deals in the new year and expanding the business to include additional investment strategies and vehicles, Wooley is, as usual, going full-steam ahead. “Presently, most of our business is in Texas. We do a few deals out of state, but I don’t usually market outside of Texas much. In 2019, we might expand into other areas, but the market here is still so strong I am not sure I need to spread out yet,” Wooley said pragmatically. She added, “I think things in our area are
definitely correcting, but there is still so much going for the DFW market. We are not dominated by one industry. We have an incredibly diverse economy. So many people are moving here from expensive markets out west. When they get here, they realize there is so much more to be had in Texas for the same amount of money [they were spending before]. We all know things are bigger here in Texas!” To factor in changing market conditions, Wooley is doing mostly wholesale deals and “wholetail” deals at present. Wholetailing involves
buying a property at a deep discount, as in wholesaling, but performing minimal upgrades or even just doing a deep clean before selling the property. Wholetail properties tend to have higher price tags (closer to retail) than wholesale properties because they are move-in-ready or rental-ready even if they are not fully upgraded or modernized the way a full flip would be, and the strategy is far faster than traditional flipping. “We’re still doing total renovations as well, but we want to keep ourselves
monetized and relevant if and when the market does shift,” Wooley explained. “We want the best plays across the spectrum.” She also noted she plans to expand into residential assisted living, group housing for seniors, in 2019. “We’re going to hit that 200-deal mark and take this business to another level each year,” she said confidently. •
SWIFTER, HIGHER, STRONGER IN 2019
Carole VanSickle Ellis is the editor of Think Realty Magazine. She can be reached at cellis@thinkrealty.com.
If real estate has been a roller coaster for Wooley so far, then 2019 looks like it could be the Olympic edition for the investor
24 | think realty magazine :: october 2018
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