Two Caliber agents teamed up to flip this awesome Camano Island property for a solid profit, which moves them one step closer to their goals of building personal real estate portfolios.
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The Backstory – Whose project, and how they found it.
Whose project was this?
Kate Johansen, Caliber’s Rookie of the Year in 2017, partnered with Chandra Lacy (AKA, our #MasterAgent) on this flip project. Both came to Caliber Real Estate because they want to build Real Wealth through Real Estate. This was Kate’s first flip, so she approached Chandra about partnering on it because of Chandra’s past experience working with Investors and flipping homes, knowledge of the local Camano Island market, and good experiences collaborating on some previous Real Estate Investment Deals. Among the reasons Chandra was excited to partner on this was the opportunity to work with another woman in the male-dominated real estate investment world.
How did they find this property?
Put yourself out there as an agent that works with Investors, and deals will find you. Kate, an avid and intentional user of Social Media, does a fantastic job of letting her sphere know that she does more than traditional real estate, working with investors and looking to invest herself. She received a message through Facebook from the girlfriend of the grandson of the property owner. The house was run-down, and the family knew that only someone with an Investment Mindset would be able to help. Kate met with the family, and agreed to purchase the house as her first flip.
What did they like about the property?
“The house was a Unicorn,” according to both Kate and Chandra. It was a Rambler (sought by Retirees) on Camano Island (a desirable place to retire to) with a shop (even more desirable) on 10 acres (extremely rare!). Kate was particularly taken by the double-sided fireplace in the main living area which she envisioned to be the key selling feature, if done right. “Kate started sending me Pinterest photos of her vision for the fireplace almost immediately after we walked the house,” Chandra recalled.
What Were The Biggest Challenges?
Removing abandoned vehicles & junk from the yard, disposing of chemical waste from the shop, adding a monstrous deck on the back of the house, extra delivery costs of materials to the rural location, and revitalizing the driveway (which is really more like a road) pushed their fix-up budget beyond what they had planned. So Kate went to work raising additional private funding to complete the project. What would have once been a daunting task felt possible because of how she had observed others at Caliber accomplish it. Kate raised what was needed, and the personal growth turned out to be what she was most proud of at the end of the project.
A Fireplace in the Master Bedroom that they originally thought was going to be a selling feature turned out to be a very fortunate casualty of function. They made the decision to remove it so that a King-sized bed could fit in the room, and discovered in the process that it was hiding a bunch of dry-rot that surely would’ve turned up on inspection. So they avoided the potential deal killer, and increased the appeal of the Master Bedroom with one decision!
Kate and Chandra closed on the house at the beginning of September, and immediately went to work. The herding of the cats (as managing subcontractors can sometimes feel like) took a bit long than they anticipated, but the house hit the market at the beginning of November.
They intentionally listed it high ($675K) to see if they could find a buyer, but reduced the price after Christmas to $650K. They found themselves in a multiple-offer situation and closed with the lucky buyer in February.
Kate and Chandra both became Caliber Real Estate agents because they are looking to evolve beyond just traditional real estate transactions. Kate wanted to be somewhere she was surrounded by those she aspired to emulate. “You don’t know what’s possible until you’re around it,” explains Kate. “At Caliber I’m surrounded by others who are investment-minded. Everyone is working on projects and evaluating deals, and there’s always someone you can share ideas and stories with.”
Chandra came to Caliber as a real estate industry veteran who had experienced the increasing scarcity of homes for sale and wanted to be at a brokerage where home inventory was being created. “I’ve always looked at real estate through an investment lens, so 80% of the business I did was with Investors,” recalls Chandra. “Caliber provides inventory, for both retail clients and investors. I now have the opportunity to partner with others, like Kate, and continue to learn from being around other investment-minded brokers.”