Real Estate Investment Tips from A Pro
According to popular home improvement shows, buying a rundown house, turning it into something beautiful and selling it for a huge profit is as easy as rolling paint onto a wall. But in reality, Casey Dexter explains there’s a little more to it. A successful house flipper in Denver for the past four years, Dexter works for Home Sale Advantage and has renovated and sold about 90 homes in the Denver metro area since 2016. Here, Dexter gives a quick rundown on what’s important about buying and renovating investment property.
Estimate Renovations Accurately
Dexter has also had a lot of practice estimating prices. There were mistakes to learn from at the beginning of his career, but now, his formula is about 95% accurate. Part of his formula for nearly 70 of his home flips has included the deep discounts on high-end carpet at Sloane’s Carpet Secret. “Sloane’s is great,” he enthuses. “They have really nice carpet that might have a blemish, but it’s really hard to pick out. The prices are outstanding! You can’t get higher quality carpet. It helps me hit my budget on my houses.”
Establish Solid Vendor Relationships
Home Sale Advantage relies on a team of seasoned contractors and vendors. Again, Sloane’s is part of this successful formula. As a Registered Partner with Sloane’s, the carpet experts at this warehouse recognize Dexter and understand he needs efficient service. “They see me and they know this guy’s buying carpet right now!” He comes ready with his measurements and a solid idea of the style he wants. Because Sloane’s holds over 1 million square feet of carpet in stock, Dexter can quickly choose his carpet, either at the Slaone’s warehouse or via video chat, and make his purchase, which includes the partner discount of 10% on top of already discounted prices. “My experience is if I go to Sloane’s it takes just 30 minutes.” He also knows the Master Installers from Sloane’s will accommodate his timeline, a critical element of flipping homes successfully. “I give them a date and they accommodate me.”
Buy at the Right Price
With his extensive experience, Dexter knows to look closely at market demand in a prospective neighborhood and figure out what is selling and renting. Those figures should drive every renovation decision you make and your bottom-line budget, not personal tastes. He describes an investment property his company currently owns in Denver’s hot Capitol Hill neighborhood. With the ultimate goal of listing the property at about $1 million, Dexter says, “The finishes are going to be high quality, and we’re putting in biking appliances and a two-car garage.”
Follow the Expert’s Lead
Lastly, Dexter confirms a tried-and-true strategy of real estate. “You have to sell what you’re looking at,” he advises. Curb appeal means a lot. He often spruces up the front with “fancier house numbers, a cool mailbox and a sharp light that hangs above the numbers.” And don’t forget the landscaping. “You’d be surprised how far a bag of mulch goes,” Dexter points out. And if you know where to look, your community may even have resources for free mulch and rocks.