Square feet can be different, aaaahhh… the Del Norte Project…how about we just forget this one? This is when selective amnesia comes in very handy…What a pain in the neck this one was. But there is a good lesson here for anyone designing or flipping real estate. No matter what you’re following this blog for, this little story can teach you something important a homes square feet.
So prior to Del Norte, any home I purchased had a determined square feet indicated on title of the home. It was recorded at the county . Because all our homes are purchased cash and we buy so steeply discounted, we don’t need or get appraisals.
So I purchased it, closed it, rehabbed it, staged it and then sold it to the 3rd offer I received. So, “cha-ching” profit round the corner right?… Wrong! So here is how it really went down. We opened escrow and proceeded to perform our end of the sale in the normal way. When it came time for the buyers appraiser to do the appraisal, he made a really grim discovery while conducting the appraisal. What I thought was actual square feet, turned out to be a very well done room addition…WITHOUT PERMITS! …Bamb! So what happened next? We lost the square footage and the value for the room. Ugh!
So now what? All I could do was to sell it for less. It was a great home, the rehab turned out great, it had a great profit diminished down graded to a nice profit but the big lesson to learn here was to measure in the field before purchase and compare against what was on title..and NEVER believe it until you calculate the measurements yourself. For more details (see our link measure up or down)
This post is written by (me) Don Gilmartin in order to inspire the DIY, design & flipping community. As CEO and founder of Fliptechs I have over 20 years of design, construction, and real estate, experience to share.