About Booker Builds
We became house flippers because we saw an opportunity to combine our love for real estate with our commitment to sustainable building practices. Now on our eigth flip, we've improved with every project, becoming faster and more efficient each time. House flipping isn't for everyone. There are inherent financial risks involved, and you must be willing to adapt when unexpected issues arise (they will). Success requires realistic expectations and a reliable system for evaluating properties, setting and adhering to a budget, and ensuring your general contractor and tradespeople stay on track and on schedule. But for us, it's been a joy -- a challenging, rewarding journey.
Our first flip was conveniently located about seven minutes from our house. The townhouse, in a small HOA, had the same owner for 40 years. Clean and well-maintained, it had a big bonus: perfect wood floors under the wall-to-wall carpets! The kitchen and second floor bathroom needed a full gut. But the real opportunity was the dated, wood-paneled basement. We tore out the paneling (a DIY project) and then had our contractors create space for a family room, an office, a laundry, AND a small but functional full bath.
Issues: Our marvelous contractors, who had done lots of work in our home, won the bid. And, being our first flip, we definitely appreciated using a known, trustworthy resource. But this two-man crew took six months to complete the project.
Lesson learned: Avoid carrying costs by working quickly! You'll pay taxes, utility bills, insurance, etc. All this will quickly eat away at your profit.
We originally bought this enormous, 2-bedroom, 2-bath garden condo for one of our kids and two of her friends, all of whom were attending DePaul University at the time. (After buying, we enlisted the help of all our kids for the painting job.) After the girls finished school, we rented it to two sets of long-term tenants before deciding to sell it when valuations in the neighborhood seemed to be at their peak.
Issues: Fortunately we did not encounter any issues selling this condo. In fact, other than painting (professional, this time), we did not have to do much renovation prior to listing it.
Lessons learned: It can be difficult to list a tenant-occupied property. For example, we had to bring four laundry baskets to “declutter” spaces ahead of the photographer’s photo shoot. Another example is scheduling tours around the tenants’ availability, especially if they work from home. While some flippers may not have the resources to wait until their property is empty to list it, this certainly makes everything easier.
Can you say "studio"? At just 820 sq. ft., this studio apartment was our fastest flip. All it needed was a new carpet and new paint before we put it back on the market about two weeks later. Also, the building was memorable because of its roof-top pool (a four season pool, no less!).
Issues: After a friendly start, the buyer we accepted became increasingly irratic and confrontational, and ultimately terminated the contract. We parted ways and quickly found another buyer.
Lesson learned: Any buyer who says, "That's Okay, I don't need a lawyer," definitely needs a lawyer. (While most buyers and sellers use a real estate attorney, there are no laws in Illinois that require it.)
Another studio. This one had a bonus: an extra room (think walk-in closet). But for the student market (the building is a stone's throw from the Loyola University campus), it made sense. Best of all, the owner had already bought all the cabinetry for the kitchen rehab.
Issues: As usual, our plan was to sell this flip and use some of the proceeds to purchase another property. But our son wanted a place of his own, and after a little discussion, it made sense to rent it to him at a below-market, "friends and family" rate. Also, because of the building's construction, opening walls or ceilings to add electrical conduit wasn't possible -- something we discovered only after becoming owners. While this constrained our design choices, we made the best of it.
Lesson learned: A structural issue or a life event (or both) may necessitate adjusting your plan. Go into every project with an open mind; flexibility is your friend.
We owned this property as an investment for a couple of years. Specifically, it was an Airbnb for families visiting the Naval Station Great Lakes for their naval candidate’s graduation. During the Covid-19 shutdown, we rented the home to long-term tenants. Following two sets of nightmare tenants, each of whom trashed the home—imagine spaghetti and sauce thrown on the walls by one; a pest infestation caused by the other—we decided to remodel the entire home in preparation for its sale.
Issues: When starting a flip, we try to anticipate and budget any expenses, as well as control the timeline for its completion. When converting a previously tenant-occupied space, it is impossible to know what is needed until you are in the middle of the work.
Lessons learned: We learned that flippers should include a line item in the budget for 10-20% (or more) for unanticipated expenses. For us, on this project, one of the largest unanticipated expenses was rat, mouse, and roach extermination. (Fun fact: we had to use four different exterminators.) In summary, we learned that flippers have to assume that there will be unanticipated expenses and challenges. Embracing the likelihood of these challenges will help you find cost-effective, time-efficient solutions.
Ninety minutes southwest of us, this home, on a quiet cul-de-sac , was a brilliant find. We both immediately saw past its awful condition because the "bones" of this three bedroom home were great. Our rehab consisted of replacing the floors, updating the bathrooms (saving what we could), painting, new ceiling fans, and installing new kitchen appliances, cabinets and countertops. On the outside, we did long-overdue lawn maintenance. The rehab, which took three months, also introduced us to a new contractor who we've since used on other projects. Soon after putting the refurbished home on the market, it quicly sold near our asking price.
Issues: Managing a far-away flip can be a challenge, especially when the Chicago expressways are under construction (when are they not?).
Lesson learned: The quick sale confirmed that our sale price was right on target. Do your homework when you research “comps” –- the comparable properties that have sold in the area.
Less than two blocks from our home, this first-floor condo in a small HOA was an absolute joy to work on. We were inspired by a single wall of wood slats to follow a Mid-century modern style in our renovation. Our rehab consisted of replacing the floors, updating the bathrooms, painting, new ceiling fans and lights, new kitchen appliances, cabinets and countertops. Everything was high end. For staging, we brought many pieces of furniture and decorations from our house, including a bar cart and a set of martini glasses with a shaker, and paintings for the walls. Speaking of paintings, in the building's storage area we found two, large oil paintings that fit the mood perfectly. We proudly hung this art on facing walls of the large livingroom. The rehab went fast, thanks to our familiar team of contractors. It sold quickly after one open house -- a bit above our listing price. We were extremely proud of this, our 9th, flip.
Issues: Managing a flip in your own neighborhood adds a bit of pressure (what will our friends and neighbors think?) but that gave us extra incentive to do a top-notch job.
Lesson learned: The quick sale confirmed that our list price was right on target. But just as important to us were the many complements we received by people who toured this flip. Our carefully curated staging really struck a chord!
