While Hick was gone to see a man about a back yesterday, a mysterious phone caller left a message on our house phone. It still has problems, that line, because I have yet to go online and schedule repairs. The problem is coming from outside the house! We know, because Hick had a gadget that he plugged into the outside wall jack to check our house line, and it was fine.
Anyhoo... when I listed to the message, I could hear the guy's name. Through a lot of static, I discerned that he was asking about our Double Hovel flip house(s). I could make out the address, and his phone number, but the most pertinent item was indecipherable. He was either asking if we wanted to RENT or SELL our property.
When Hick got home, I made him listen. He said the guy was asking if we wanted to SELL. He called the number, and the guy must have been in the middler of nowhere than we are, since Hick was out on the porch where we get cell phone reception, and still couldn't hear. The guy said he would call back in about an hour. He did.
Said he's part of a group that buys and fixes up houses for resale. Wanted to know how much we want for the Double Hovel. Hick said he was in the middle of renovations already, having put in electric, and working on the plumbing right now. Told The Guy that he'd need to discuss it with his wife and son, and see what we have in it already, and how much we want.
I've been compiling the figures, accounting for free stuff Hick has put into it, as well as what Hick's labor is worth. The Pony and I don't care if we wait until it's complete, or if we sell now. We just want to make a decent profit. Otherwise all Hick's hard work was for naught. If Hick doesn't feel like finishing it, we will defer to him.
Hick says he's fine with finishing the project before selling, but that we should hear what The Guy offers. The Guy said it would be a cash deal. Here's the thing. When we bought it, it was a seller's market. Houses were going for over the asking price. Flip houses were hard to find. NOW it's a buyer's market. Buyers are hoping to snatch up properties that people can't afford payments on. That's where we're sitting pretty. The Double Hovel is owned free and clear. Ours was also a cash deal, heh, heh. So we don't HAVE to sell. We can wait it out while renovations are completed.
Hick says we should get at least 10 percent over our expenses. The Pony and I say it's worth more than 10 percent. That's a slap in the face to all of Hick's hard work.
The Guy is supposed to call back at the end of the week. Hick doesn't think he'll want to pay what we ask for. So be it. No skin off my nose. Only off Hick's hard-working knuckles.
I know Hick has a good and giving heart but he needs to make sure that he is compensated for his labor. 10 percent over expenses is absolutely too little even if all renovations aren't completed. Like you said, you don't have to sell now so you can wait for a fair offer.
ReplyDeleteI agree. I thought the 10 percent sounded low, since we bought it with the plan of making a better profit. However... I don't want to push Hick into working on it if he is not back to normal after his back surgery. He says he's fine, but I know he's been having pain, though not as much as BEFORE the surgery.
DeleteI think Hick the Flipper might have a good deal waiting, and you two can pool your found coins and his profit and go on vacation.
ReplyDeleteHe'd have a better deal waiting if he listens to ME! There's a reason I once bought a car without his participation. Hick is not shy about taking a vacation when he wants it. I'd much rather stay home.
DeleteKeep it and reap all the rewards coming to you! You are right, this guy is looking for a bargain.
ReplyDeleteThis guy will be surprised to find out that we weren't born yesterday.
DeleteI say keep it, fix it, then sell for a better price to someone who needs a place to live.
ReplyDeleteYes. When both buildings are renovated, there's the selling point of "live in one, rent out the other to make your payment."
Delete10 percent seems low even in a changing market. If you don't have to make a move, real estate almost always comes back and then some.
ReplyDeleteI think so, too. It's not like we're making payments. When I was calculating how much money we had in it, I asked Hick what HIS services were worth.
DeleteHe pays Old Buddy $15/hour for the odd jobs. Hick said he charges Back Creek Neighbor Bev $25/hour. He said that he's worked about 20 hours more than Old Buddy on this project, so add $500 to the price. Heh, heh. Doing it his way, we're only counting 20 hours of work. So I had to add in the 84 hours that Hick has also worked alongside Old Buddy. Quite a difference! That's why I handle the finances: attention to detail.
Hick under-estimates his value. I did, too, when I took in sewing. It is because we enjoy what we are doing and can't fathom that people are willing to pay the worth of our efforts.
DeleteYes, it's like his favorite hobby. Hick said this morning that if this guy meets our new outrageous asking price (that would give us a 35 percent profit), he will probably look for another house to flip.
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