Following GC Realty & Development’s debut on The Deed Chicago with Sean Conlon, the
We interviewed Bryan Sonn,
Question: The show opens with Mark Ainley and yourself talking about the first property you decided to flip and how you made a killing on it. What made you decide that you wanted to try flipping properties?
Bryan: I have friends that were successfully doing it, so when Mark and I had the opportunity, we jumped into it and said, “let’s give it a shot.” We made a killing on the first one and on our second flip, we made about $40,000 in 7 weeks and from that point forward it was my passion. It was my passion.
Question: The property The Deed episode is about was bought at a judicial sale, and while the mistake was more of an oversight by an employee after that property did you have hesitations about going through judicial sales to acquire properties in the future?
(Actual Property Featured in The Deed)
always had someone out there. We would have either staff from maintenance or even one of our contractors go look at the house and send us a picture of the property to confirm that’s what we’re buying.
Question: You talk at the beginning of the episode on how your ‘bread and butter’ was flipping single family properties, but after seeing such a large profit flipping this duplex, do you see multifamily flipping being a path your company will continue down?
Bryan: Yes, we’re probably going to go right around 75/25 [single family/multifamily]. Since the show, we have had the opportunity to acquire 17 units in Woodlawn. There are a lot of opportunities around; fixer-uppers in class B and C properties and even opportunities within university housing. As well, we have found a large market for 3 flats and 2 flats, so absolutely! We’re going to jump into it, but we don’t want to lose our niche; single family.
Question: The property featured in the episode was financed with short-term private
Bryan: Someone just starting out in flipping properties is not going to be able to get that traditional lender to give them money because they don’t have a track record, so private money is key. The terms of the loan in the case of the “Mistake on the Lake” were higher than what we’re used to paying, but we lined up the timing of the use of the funds right, meaning we used our own cash before dipping into the loan. Once you start taking their money, the clock on the interest starts to tick. So the whole incentive with private money is to get started and finish quickly and use as little of their money as possible. If you must use it all, which is not a bad thing, make sure you have a solid strategy to get out of it fast because at [an interest rate of] 15% over a year, that’s a lot of money! But by only using money at 15% over 61 days, we minimize the amount of time we had this money on the street.
Question: After working with Sean Conlon, what will be your company’s biggest takeaway, or what did he teach you that you are going to bring to your business?
Bryan: Think before you react and take your emotions out of everything. Understand that people have limits and capacities and not push them too far because if you continue to push too far, you will lose them. And finally that employees
truly are the most important ingredient inside the company; they are the heartbeat of the company.
Check out The Deed episode, the “Mistake on the Lake” with Bryan Sonn and Mark Ainley, on CNBC with Sean Conlon to see this exciting and successful property flip!
“Here’s one inspiring conversation between Bryan and Sean”
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