Home Buying in Eden Prairie>Question Details

Eric.s.heinz, Home Buyer in Eden Prairie, MN

How to find a home that's good for remodeling?

Asked by Eric.s.heinz, Eden Prairie, MN Sat Jan 5, 2013

Hello,
We're looking for a home in a good community (good schools, social, walking distance to parks/restaurants/bars) where we can gut out the inside and finish it with quality materials. What is the best way to go about finding such a property? How do we find a qualified contractor?

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Answers

9
I work with a large network of investors in the Eden Prairie area, most of whom purchase distressed properties to remodel. However, distress properties are drying up in this area - it will take time and the networking to locate such and I'm happy to assist with that.

Stephanie Lee
Twin Cities Residential
952 865 0207
0 votes Thank Flag Link Thu Jan 23, 2014
Hi Eric,
As you know its all about Location, Location, Location. It also depends on the budget and resources (good affordable contractors that do quality work). I live in Eden Prairie and homes here are not cheap and on top of that its very very likely to get into a multiple offer situation on practically any home in a good area. Ultimately the numbers have to work and preferably if you can pay cash for the acquisition/rehab that will set you apart from most. I work closely with a non-profit company who gets first rights to homes and then they will sale it to my investors. With such low inventory in MN; finding the right home is difficult, but you can still do it if you're active. However it really depends on your TOTAL budget. Anything less than $100k you will be spinning your wheels because its a lot of competition and so that will chew up your profit. If you move at or around $150-$200k its less competitive, but also you get a higher ROI. More risk involved of course and homes will take a little longer to sale at this price point. I work with a team of people that can get the job done, but I hope this info. helps you along the way...
0 votes Thank Flag Link Fri Jan 11, 2013
Thank you for the answer. I want to purchase a home that is ready for remodeling. That way, I can design it to my liking. I am very picky about my kitchen, and I doubt that I can find a seller with the same taste.

http://lifestylebuildingco.com/about/about.html
Flag Sat Oct 18, 2014
Hi Eric,

I am a professional real estate investor, looking for the house you mentioned is what I am doing. I often find deals for rentals and flipping which I sell as a wholesale to customer like you. I also have a network of investors who do the same thing as me. We always networking on buying and selling to/ for each other all the time. My contact info is Vitchuda@NewSummitSolutions.com

Vitchuda : )
0 votes Thank Flag Link Tue Jan 8, 2013
Eric,
Contact a local agent to assist you with finding the home you are looking for.
0 votes Thank Flag Link Sun Jan 6, 2013
The best way to find such a property is to have an agent who can send out new listings to you as soon as they come on the market. You can also ask your agent, or look yourself for lenders who do renovation loans and start building a team first of people to work with you. We all know, location, location, location is the first thing to look for, but then you need to identify what you want to accomplish and your budget and get the pre-approval for such a project. If you want a two story home, and there are only one story homes in the area that you like, you need to find a home that will have the bones to support a project like that. That's why you need your team together early on to consult with as well as inspectors.
0 votes Thank Flag Link Sun Jan 6, 2013
I agree that having an agent is super helpful. It's their job to be informed about the housing market, and so they can keep you up to date on good options to remodel. It shouldn't be too hard to find an agent that you work well with. http://hlremodelingandlandscaping.com
Flag Tue Jul 22, 2014
1) I think understanding the markets is crucial when thinking about a starting point. Eden Prairie is actually a great area. Let's say you want the finished product to be a 4/2 2000 finished square ft. split. What price point are the ugly ones selling at? I am praying you have conventional financing, because you will need to have this as a must. Once you start to analyze the market you can understand price points.

2) A side question I have had to figure out over the past year is if the competition will be turning these flips into rentals instead. That is screwed up a lot of investors recently, because the margins have just drastically decreased over the past 9 months. It is much cheaper to fix a home for a rental, and in my area you can actually pay more for a rental home than a flip home. This has made it almost impossible to buy flips off the MLS in my area with real margins.

3) But as the others below have illustrated there are realtors out there that work with investors. Due to this we will be the best service to you, because we can help with all of the planning stage.

4) And especially when it comes to contractors I only work off a referral basis. There are just too many bad ones out there, and that is the fastest way to sabotage a good deal if you get a bad one.

5) Once you select a buyer's agent eventually they will set you up on a property search that identifies the type of house and price point you want to look at. For example, in my area for splits I set up the search between 80-100k, and I am looking for very specific properties that meet my criteria. After awhile it will become very easy to identify the properties worthy of looking at.

I don't work Eden Prairie, but I could always refer you to a good agent I know. Otherwise, good luck and happy house hunting! ~Chris
0 votes Thank Flag Link Sun Jan 6, 2013
Hey Eric,
These type of properties are very hard to find because there is a lot of competition for the type of property you're looking for. I can help you find one, but to set expectations, it could take a few months to find.
One of the keys to profiting on a rehab project is to buy the property cheap enough to have a 20-30k profit margin WITH rehab costs built in. This requires the patience to wait for the right property to come along.

Even if you don't know how to do any of the work yourself, you should manage the project yourself to save costs. No one cares more about your money than yourself. Getting bids for materials and contractor labor costs can save you $1000's that will go to the bottom line. It will also give you the experience if you decide to do more flips in the future.

I work for a brokerage and property management company that averages 30-40 flips per year, so I have many contractors that I can refer you to and can also help you with the 1st time management process.

Give me a call to talk more about what you are specifically looking to do.

Thanks,
Chase
612-819-4474
0 votes Thank Flag Link Sun Jan 6, 2013
Not interested in flipping the house. Interested in building a house with high quality materials, solid hardwoods, Anderson windows, high-end appliances. Must be in a good neighborhood, must have good resale potential in 5 years.
Flag Sun Jan 6, 2013
Hi Eric,

There are a number of strategies that can help you go about finding these types of properties. Where I tend to be the most helpful to buyers like yourself is finding you non-mls opportunities, pre-foreclosures, foreclosures, short sales, and estate properties. I have several different contractors that I would recommend depending on the scope, timing and budget of the project. Feel free to contact me anytime.
0 votes Thank Flag Link Sat Jan 5, 2013
Hi Eric,
I work with investors who are looking for the same house as you to remodel and sell at a profit. You are looking for the same home, although it sounds like you want to live in it. There are several programs available for buyers like you right now. One local city will contribute up to $50,000 toward your project. I can help you with property selection, finance, and have a number of reputable contractors I can introduce you to. It may be worthwhile to meet for coffee. Please call me anytime if you have more questions. Thank you.
Web Reference: http://www.mywra.net
0 votes Thank Flag Link Sat Jan 5, 2013
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