Jan. 15, 2021

Her Journey from Flipping Houses to New Construction with Rochelle Horton


As an entrepreneur, you have to be willing to feel uncomfortable and not know all the answers, and then do the scary things anyway.

The doing is the only thing that is different between those who reach their goals and those who don't.

Rochelle is coachable, she does the things that are uncomfortable, and she has several businesses to show for it.

Listen to her journey over the last 2 years in my coaching program from flipping houses to flipping dirt lots into houses (i.e., building new ones).

This is yet another episode that is certain to inspire! What action will you go take now?

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"Leave people and places better than you find them." - Debbie DeBerry | The Flipstress®






Transcript

Unknown Speaker  0:01  
You're listening to the flip houses like a girl podcast where we educate, empower and celebrate everyday women who are facing their fears, juggling family and business, embracing their awesomeness and wholeheartedly chasing their dream of flipping houses. Each episode delivers the honest to goodness tools, tips and strategies you can implement today to get closer to your first or next successful house flip. Here's your spiky haired breakfast taco loving host house flipping Coach Debbie DeBerry.

Unknown Speaker  0:40  
Hey there. Thanks for taking the time to hang out with me for a little bit today. You know, I love like the whole point of this podcast is to inspire women to chase this dream of theirs. It happens to be flipping houses. And I do that by showing you that other women, everyday women, just like you and me, are out there doing the thing. They're out there flipping houses, they're out there building houses, they're out there chasing their dreams. So this episode is no different. I want to introduce you to one of my students. I love her so much. Her name is Rochelle. She's been a member in my coaching community for two years now. And she's just awesome because she just goes and does. So if she has something that she's curious about, she goes after it. That's all you can do. Right is chase your curiosities. So, I hope this episode inspires you to go chase your curiosities. Alright, so Rochelle is going to talk about how she went from flipping houses to new construction. Because she was curious. Alright, so let's get in and talk to her about her first actual three. She's, she's about to start her third new construction project. All right, let's hear what she has to say. She's going to talk to us about the steps she went through any hurdles that came up? And how flipping houses and building houses, how they compare, and any differences. Alright, let's talk to Rochelle. I'm not even going to pretend that that didn't happen. Like for the sake of transparency, we're doing this. We're recording this call again. And this time, I'm hopeful it sticks. So thanks for jumping back on the call with me. Oh my gosh, that's a part of it. Right? Like we have to be able to handle what comes our way and go with the flow. Oh my gosh, okay. All right. So, okay, if you would just let folks know, like, where you're located and a little bit about a little bit about yourself.

Unknown Speaker  3:08  
All right. So I'm Rochelle Horton. I'm located in the Austin area. And I am pretty new to this real estate. I'm setting but I am flipping homes and doing new bills and have some more stuff coming.

Unknown Speaker  3:26  
Nice. I love it. Okay, so you did your first flip in 2019. And then I know it feels like we just had this conversation. And then you decided to do a new construction. What made you what sparked that curiosity there?

Unknown Speaker  3:53  
So with me, I just wanted to see how things worked for a house that's not existing it and I just wanted to see the very beginning from start to, you know, from the woods to the actual house. And so that's what it was for me wanting to see another part of it without it already existing.

Unknown Speaker  4:12  
Okay, and you Okay, so, you have purchased three lots for really because you're about to start your third. The first lot that you bought that you didn't build on what happened with that one.

Unknown Speaker  4:31  
So when I purchased that lot, my understanding was it was a county lot coming and I come to find out it was a city life. So when we got ready to do permitting and things, it was just a lot of holdups, it was gonna prolong me for like nine months, so I just made a decision to sell it and purchase another line that was actually verify County,

Unknown Speaker  4:54  
okay, and you made a profit on that loss.

Unknown Speaker  5:00  
made about a $4,000 profit,

Unknown Speaker  5:02  
which is in the lot was 18,000 when you bought it, so you made like, 40% 30? Let's see 25 I don't even have a four year. Yeah, that's crazy. That's crazy. It's, it's amazing. When your eyes are open and you're willing to change your, your plan, you can still make a profit. Why when you went in wanting to build, and then guess what, that wasn't gonna work the way you wanted it to work on that lot. And so you pivoted and you chose another strategy, and you sold it and you made a profit. Easy peasy. Yes. I love it.

Unknown Speaker  5:50  
Okay, you're right enough to get the permits for them the next meal.

Unknown Speaker  5:54  
See, there you go rolling it over. All right. So then you had a second light. And what made you choose? Because you built in backdrop, what made you choose that area over any of the other areas around Austin.

Unknown Speaker  6:15  
So I had built a relationship with a realtor. And he was telling me, you know, backdrop is booming. There's stuff going on, he has clients going out there looking for homes to buy. So I told him to send me to come she sent them to me, we looked it over. And I decided to build out there.

Unknown Speaker  6:34  
The data doesn't lie, right? Show me those comps. And okay, so you decided to build out there. Now, how did you find your GC? How did you decide who was going to be your builder? Because my guess is it wasn't going to be somebody used at all on repairs or fixing up houses prior?

Unknown Speaker  7:01  
Right? So I went to Facebook on on investor underground. And I spoke to about nine or 10, GCS. And I just started off, you know, in the beginning, not really knowing what I was talking about by like sending them my budget, telling them what I wanted to do. And they were coming back with these outrageous numbers, or the vibe just wasn't, you know, good, their energy wasn't good. And I just felt like I was either don't feel like I was getting on their nerves, or, I don't know, I just didn't, it just didn't work for me. So like, by the night, the 10th person, I was asking questions, and I really wasn't even ready, ready, because I didn't have all my stuff together. But believe it or not, he stuck, stuck it out with me for the six or seven months getting ready to do the video. He didn't ever disappear on me or anything. He strung it out. So I knew he was the one.

Unknown Speaker  7:49  
That's amazing. Okay, what happened in that six to seven months? What were you doing during that time?

Unknown Speaker  7:55  
during that six to seven months COVID hit. So my original hard money lender, um, put all the new construction money on Whoa. And I was just waiting and waiting and waiting. And I was like, you know, I wanted to be loyal, and I wanted to finish out the project with them. But one day, I just woke up, like, I gotta keep moving. And I contact the Lone Ranger. And I was like, let's do it.

Unknown Speaker  8:21  
Yeah. Yeah, that's, you know, I think that's one of the hardest things that I've had to learn. And I'm constantly learning it is that because I'm like you, I'm loyal man, I am super loyal. And with contractors, or with lenders, or with anyone, really, that's holding things up. Like, they're not pulling through, and it's costing me money. And it took me a while to be like, No, no, like, you have to get rid of people who aren't working out for you. Right, then it doesn't mean that you can't ever use them. Again, it doesn't mean any of that. But it does mean that if they're not working for you right now, it's a business decision. You got to get rid of them. But it's hard. It's really hard to do that.

Unknown Speaker  9:12  
And the thing for me was I was going to close in the next week. So for you to pull the plug on me, like my friends were so hurt.

Unknown Speaker  9:24  
And then you reached out to Lone Ranger. Now let me ask you this lone ranger capital. I love them. I adore them. If you're in Texas, you better be talking to Lone Ranger capital, let them know we sent you. But if well, though, let me ask you this, your terms that you had with the previous hard money lender? How did those compare with the terms that you ended up getting with Lone Ranger?

Unknown Speaker  9:51  
I remember. I don't think they were too far off.

Unknown Speaker  9:54  
Okay, because I I know I didn't ask you that on our first interview earlier today.

Unknown Speaker  10:00  
I don't think they were too far off. I don't remember them being too far off. Okay. But I will say is different. The percentage was 9% versus no Ranger was 12.

Unknown Speaker  10:10  
Did they Finance? They were gonna finance pretty much all of it as well. We're gonna finance the whole project. Okay, awesome. So 100% financing exists. And that's to lenders that you were able to do that with. So yes, it is possible. Now. Was the process any different? getting approved for the new construction loan? Then it was when you got a loan for a flip? Through through Lone Ranger? No, yeah. And then, okay, so you ended up financing the whole thing COVID hit you, the that lender dropped the ball, you moved to a new lender, got it all financed, and then hit the ground running. Alright. Now, how long did that first project take to build when they started when they broke ground? One a half months from it. Okay. And then you sold it quickly. Yes. Now, the one thing that Well, let me ask this was the GC making all the decisions? Or were you choosing like some of the design stuff?

Unknown Speaker  11:34  
So um, hey, Dan, make majority of the decisions except by the design.

Unknown Speaker  11:39  
Okay, so you nice, you got to do the design. How did that feel? I was stressed. I had a feeling.

Unknown Speaker  11:53  
So look, I like designing. But I don't like design. Because I don't like I like how it looks when it's apart. But then when it's together. It's like what? It just didn't. Some of it was like, but then when people were coming in, I was like, no, it's good. I mean, I'm like, No, that's clashing. That doesn't look right. So

Unknown Speaker  12:18  
yeah, exactly. Exactly. Now, there was one design choice that you made. And then it Okay, let's talk about the exterior paint. What happened there?

Unknown Speaker  12:32  
Oh, so I knew in the beginning. So at the end, I ended up using a lot of Silver's, which I said I was not going to use like the silver gray era that everybody does. So I was like, I'm doing browns, I'm doing different tones of brown. So I said, I'm gonna do a dark brown and a lighter brown or like a new. So I go in, I picked the new and everything's good. And I put it on the house and it starts looking like a Barbie doll like pink. Just like now I want to change it. But then I was just like, you know what, this is my first one. Let's put it on the market. Let's see what the feedback we get. The feedback was mixed. So I'm somebody that was really interested actually say, you know, if they weren't pink, I would have bought it. And I said, You know what? I just told the GC just change the color. But somebody had looked at it while it was pink. And they ended up going under contract while it but I had already changed the color. So whatever. But I still don't like the pink. So I didn't like the pink. So it's fine.

Unknown Speaker  13:39  
I mean, but really, you can't please everybody, right? There was somebody who didn't want to be in and also, right, you can paint lady like you can buy the house and you can paint the exterior different color if you want. Okay, now we're there. Now I know on your flip, there were surprises. How did the new build compared to the flip? Were there any surprises? Or was it pretty much just following a recipe basically,

Unknown Speaker  14:13  
it was pretty much following the recipe. There weren't the only thing I knew about. I know when we ordered some windows somewhere broke, but I didn't find out about it too, after they were already putting in. So it wasn't a problem for me clearly, because I didn't even know about it. It just got fixed. It just got handled. And I found out later, but I didn't if there were surprises. That's I mean, my GC work if you can fix it, you can make a decision to fix it. long as you're not breaking the bank, you know, so I don't know about anything. Anything, basically.

Unknown Speaker  14:44  
Yeah. I love it. That's amazing. So yeah, if there were issues it wasn't put on you it was just handled. Right. Dang. That's awesome. Okay, now I guess Then there probably weren't budget surprises, like, yep. All right. It's just a prescription. Like, it's just a recipe, you just follow us follow the recipe did. So for me, I love solving problems. And so I do like building, but it's that problem solving. And like that. It's almost like I enjoy putting myself through pain. Because I like the up and down, even though I hate it. But I like the up and down. And the problem solving. Did you miss any of that at all? I'm gonna guess no, since you're on your third new build? Did you miss it?

Unknown Speaker  15:41  
It's not that I didn't miss it. I think you just I think it's just all about, for me, it's all about the team. Like just cuz even having problems in like issues with the flip is just all about the team, like, we're gonna cry about it, or we're gonna bounce up and get a handle and get the house. So like. So even with the new construction, if there's something going on, we're gonna cry about it and get it fixed. So that's just with anything that just goes with everything. So I mean, and even if it's something with the budget, at the end of the day, it's like, Oh, don't cry about it, and go into another month and is famous. And pay what needs to be paid something put it on the market site? Yes. You know, that attitude.

Unknown Speaker  16:25  
We share that attitude. It's like, great, just handle it and keep going. Right? Like you don't get you don't have to break down and let it like, put you in pieces on the floor, handle it and move on. That's something that is when when I see that in people, I'm like, Oh, yeah, that's a that's tough to be in business. And be able to, because you have to be able to handle the things that come your way and not let it just totally destroy you. Right. So you're on? You basically did your second one. I felt like you did your second one simultaneously with your first I don't. Okay,

Unknown Speaker  17:11  
I started it at the very tail end. So like we started building the first one in June. We finished it the middle of October, and we broke ground on the other one in the middle of September.

Unknown Speaker  17:24  
Okay, okay, that's making sense because I'm like, I don't understand this timeline. It's like the second house went up in like a month and sold in negative two weeks. It just, this second one happens so fast. And I know you you were posting a lot about your first one. And that's probably why like, we just saw that one so much. Now, you broke ground on your third one.

Unknown Speaker  17:52  
I haven't broken ground on it. We're actually closing in the middle of February.

Unknown Speaker  17:56  
That's right. Okay. That's right. Same builder, you're using the same builder? Yes. Did they did that builder come with plans? Or did you buy the paint plans separately? And he's following them?

Unknown Speaker  18:09  
He's following them. I do my I do my own for him. Okay. Oh, could you? Did you do your own floor plan the first time? Yes. So I'm actually doing a repeat because on my second build, I actually worked with my builder on that one. So he came with his floor plan on that one. Okay. Okay, so on this one that we're doing the first one I did. Um, it was my own floorplan, I got it from the plants at three. And then this third one that I'm doing, I'm gonna do it again. But I'm gonna flip it and I'm so upgrades to it. Very cool.

Unknown Speaker  18:49  
Now, are there any little things like during the due diligence period, like when we are buying a house to flip, you know, we've got to make sure we've got inspectors going in, and we've got to line this up and make sure this number is good. And make sure all these numbers work? What was it? Or is there something similar in in that period, before you build the house, or even before you decide on this lot that you're doing like soil testing? Or what are you doing that is diff that is specific to new builds?

Unknown Speaker  19:32  
So yeah, we're doing soil testing. We're doing um, I have to make sure, um, with with the permits that I can get permits, first of all, and I have to make sure and confirm that their county and then I have to make sure that I can do that square footage on that lot. Yeah. Yeah.

Unknown Speaker  19:50  
You're confirming, basically you're getting the soil testing and then you're confirming all of the other stuff with the county, the county permitting office, is that right?

Unknown Speaker  20:00  
Right, because like on some lights, they might say you only can build a house that's 1200 square feet versus some of them. It has, it might have to be 1500 square feet. It can't be smaller. So they have like, stuff like that.

Unknown Speaker  20:13  
And that's neighborhood restrictions. Is that is that right? Right. neighborhood? Yeah. Got it. See, that's, that's important information to know. So it's, you're still doing some due diligence. It's just different.

Unknown Speaker  20:24  
Yeah. And then then neighborhood, all the homes have to be cybil. They don't allow mobile homes or anything or any, anything like that. So, okay.

Unknown Speaker  20:33  
How built out is that subdivision? Gosh, I feel like they've been building on that in there for Gosh, 1010 to 10 to 10 years. pretty huge. It's still going. I love it. That's great. That's great. Now, what's your favorite part of the new build process? If there is a favorite part that's different than the flip process?

Unknown Speaker  20:59  
Just looking at the process, like literally in the woods, go to Home step by step. I mean, seeing the walls and the wires and I just like enjoyed the whole process of Sandra's every little step of the way. Like just going from especially the exciting part is going from that would it like energy to you? It's like, Okay.

Unknown Speaker  21:23  
I remember watching your you had some videos about that. I think foundation I was super. Yeah, I love it. I love it. Now, with your new build, were there any different kinds of fears? Like with a flip? It's like, gosh, I hope I don't go over budget really worried about the numbers? Is there? Was there anything different with the new build?

Unknown Speaker  21:53  
Um, you said it like going over budget, I was worried about that. And, um, the only other fear that that I always put in my head is just like the same, you know, anything that can go wrong will go wrong. So it's kind of just like, okay, what's gonna happen? How am I gonna deal with it? What's gonna you know, what's gonna pop up? I just every day during the build, you're kind of just like, Is anything gonna happen today? Yeah,

Unknown Speaker  22:16  
waiting for that phone to ring. waiting for it to ring. Is there anything that you wish you had done differently on your first build or your second build.

Unknown Speaker  22:29  
But just while the first bill taught me the lesson for the second bill to do the due diligence, so that's kind of where I learned my lesson. So the first bill told me, Hey, you need to go and check those county lines, you need to make sure that you can build on it. And that's another thing. That's why I ended up selling there live because the city was not going to allow me to be on my floor plan on their life, they wanted a two storey or something smaller. So it just wasn't it just wasn't gonna work. So just doing the due diligence and, and knowing, you know, things like that. Got it.

Unknown Speaker  23:02  
Now, is there anything that I'm forgetting? I feel like, I feel like we touched on everything. Is there anything that we haven't touched on that you want listeners to know, for?

Unknown Speaker  23:20  
Now, just my pet peeves, and you remember that? I feel let's do it. So, I mean, just just for me, um, I know a lot of people are like looking online or like watching. Like, I mean, even in the group watching people building and watching people flipping and they come in your inbox, and they ask, you know, like, a million questions or, but some of them never plan on executing, or some of them don't think they can execute, or just just that. I just, I just want people to believe in their stuff more and invest in mentors, there's nothing, absolutely nothing wrong with having a mentor, but also making that sacrifice because you hear a lot of people saying they don't have the money. And I'll be the first one to tell you that I love to shop. And I love to travel. I wasn't negotiating travel. But I negotiated shopping. And I invested in a mentor. I mean, I went from having one mentor, which is Debbie to having like five now. And I and I just love it because it's kind of like a cheat sheet. I don't have to reinvent the wheel. I don't have to figure this out by myself. Um, and I just wish more people did that instead of thinking that maybe somebody that's been in the program has to spare their time. I spend a lot of time telling people Hey, this is my mentor, go invest in you can understand it. I don't feel like I'm at a place yet to be teaching it. And I don't even To be honest, I don't think I'll ever really be a teacher. Remember, I said that right? I like to send everyone to who I learned it from. Because if you see me being successful, that's the person behind me like you that's who you need to jump on their bandwagon wagon. Yeah, and do it and just do it. Like, just do it.

Unknown Speaker  25:00  
Yeah, I'm I'm the same way. Like, I have multiple business coaches. And I will always have coaches, I firmly believe in paying people to learn from them. And it's, it's a shortcut, like you get all of their years of errors and mistakes. You get to avoid that.

Unknown Speaker  25:26  
Small conversations, but I can't dedicate like how you do dedicate your time to your patients to it. I just can't, I just really wish a lot of people that reach out to me, we just go straight to you. Put them on the toll road.

Unknown Speaker  25:45  
Well, thank you, I appreciate your kind words. And I just like you are just awesome. You know, I love you. And I love working with you. Because you go and do. That's the thing, like I can tell you what to go do. But if you don't actually go do it, right. They're like, I can't do that part. So you fully take responsibility for yourself and your actions, you take responsibility for where you are, like, that's what we have to do. And then from there, take action. So then you you've never been one to not take action. And you have really cool stuff you're involved with. Like you've got the new builds, you've got this other new business you're starting. Yeah. Like it's, it's just, I love seeing it. And I think you're awesome. Thank you. Yeah, thank you for getting back on the phone with me. Oh, my hair is dead now. See, we could have done a video after all. And I'm grateful. Like just thanks for being you. Thanks for being in the community. And thanks for taking time to share your story because I know it will inspire other people. I hope so. Yep, it will. It will. Alright, right. Thank you. Thank you, Rochelle. Bye. All right, there you have it, you have part of rose shells story and part of her journey. And I know that that's going to inspire some of you to go get into action. And you're gonna want help. Because you don't want to screw up, right. So here's the thing. I'm about to open the program up our awesome coaching program up for the first time publicly since last April. All right. So if you want to have a community of women, supporting you, and helping you and guiding you and cheering you on and picking you up when you get knocked down. That's what we do. We're really, really good at it. Because we're intentional about the community we create. So here's the thing, if you want to be part of that, and you want help on your housekeeping journey, go to first flip dunrite.com put your name on the waitlist, and I will let you know as soon as I open the doors publicly. Alright. And that's going to be very soon. So go to first flip dunrite.com put your name on the list. And let's do this. Let's chase your curiosities. And do so with support. The support is what's missing in most courses out there not gonna lie. The support is the differentiating factor for sure. All right, put your name on the list. Let's do this. You know the drill. Until next time, go out there flip houses like a girl. Leave people in places better than you find them and make it a great day. Bye