Pro Tips from the Property Flippers February 2024 Edition
Featured Pro Flippers: CinCity Properties, LLC
CinCity Properties was founded in 2018 by Patrick Seyfried, who has been flipping and serving as a fulltime Fire Fighter ever since. He offers up some experience that may help you succeed in your own flipping journey.
Patrick did something on his most recent flip at 16 Mayo Ct, Ft. Thomas, KY 41075 that seems to be a lost art in the current flipping culture; he added a contingency into the purchase contract. His calculated risk was necessary to make the deal work. This type of negotiation shows trade experience and a deep knowledge of market trends.
When looking at a fix and flip, one of things I always ask myself is: What is the buyer not going to like (?) how can I overcome it and is it a deal breaker? On my most recent project, the answer was no off-street parking. Not only was there not off-street parking, but the street parking was not good either, so I knew it would be a tough sell. I loved the house, and it is in a great neighborhood, but I told myself from the start, I would not buy it if I couldn’t add a driveway.
So, with that, I wrote a contract with the contingency that I get approval from the city to add a driveway. I had the lot surveyed, submitted plans to the city and was given a permit prior to closing. The property frontage was tight, but fortunately where this home is located, there are no set back requirements which allowed me to pour the driveway up to the property line.
Patrick has developed a model for how he evaluates every transaction, helping eliminate risks of omissions and rash emotional decisions.
Create a process that works for you and stick with it. When looking at properties to purchase, I run through my system the same way, every time. Each property is unique, but the process by which I evaluate the properties remains the same. The other thing is to stay disciplined.
Don’t be tempted to take unnecessary risks. Risks in general are sometimes necessary and worth it, but they must be calculated and work within the system that you have created. Having said this, I also believe in trusting your gut instinct. Sometimes a deal just feels good or bad despite the numbers on your spreadsheet.
While I try to remove emotion from my business decisions, I do believe we have the instincts we have from our experience and therefore shouldn’t ignore it.
Patrick concludes by emphasizing the importance of integrity in your work, a message that resonates deeply coming from a dedicated Fire Fighter.
My final piece of advice is to maintain your integrity. Put out a product that you are proud of, a home that you would be willing to move your family into. I love the feeling of walking away from a sale knowing that I’ve done the best job possible for the buyers. I also believe strongly that you get back what you put out into the world so in this case, everyone wins.
CinCity partnered with Spring Valley to complete this Ft. Thomas renovation in less than 5 months.
Purchased for $265,000, this professional renovation resulted in a February 2024 resale of $389,900.
The Stager
The home on Mayo Court provides a good example of the impact of staging for investors. The home was beautifully renovated and in a great location with a unique floorplan. After 3 weeks of being on the market Patrick and his realtor Traci Nestheide, Megan Stacy Group of Coldwell Banker Realty, sat down to discuss strategies to get the house under contract.
The first step was to pull the home off the market and relist after the holidays. They also decided at that time that they would give staging a try and called my team at Design To Market. The home was re-listed as a staged property and went under contract for the asking price within a week having received multiple offers.
This happens a lot. Buyers can love everything about a home but if they cannot process the spaces and have a vision to how they will live in the home they will often move on. Staged photos increase the number of shoppers visiting the home and often deliver multiple offers.
-Jo Potvin
The Financer
Being solution oriented, like Patrick, takes your investment opportunities to the next level. By identifying potential issues and finding viable solutions before closing deals, you can minimize risk and create opportunities for increasing the property's value.
Many remember when the market conditions were more investment friendly, and contingencies were commonplace. The last 3 years have seen fewer contingencies just to compete. When it comes to things that need municipality approval, contingencies should still be used. It's smart investing.
Keeping emotions in check is crucial for real estate success. Patrick's methodical approach provides a structured way to prevent emotions from interfering and jeopardizing the deal. We recommend all investors implement a similar system when evaluating projects. As financiers
Lastly, Patrick identified another opportunity that provided a chance to sell the house faster. He opted to try staging which resulted in a quick sale. Design to Market offers vacant homes staging as well as project consulting for all stages of the process.
Spring Valley is your local community bank offering our investors SOLUTIONS:
Quick decisions with in-house underwriting
Certainty to close
Availability of real estate & banking experts to listen & stay connected
Flexible financing options for flips, refis & income producing properties
Dependability of an established banking institution
If you know an investor that may benefit from the flipping advise of seasoned professionals, please share this blog with them.
Special thanks to:
Traci Nestheide, Coldwell Banker Realty, Megan Stacey Group
HK Solutions
A monthly series showcasing tips from professional property flippers partnering with Spring Valley.
