Kinyata and Paul Hendriex raced to flip two houses on the same Milwaukee street. She finished in 35 days and went under contract first. Here's why speed decides the winner on a hard money flip.
Kinyata Hendriex and her husband Paul each bought a house on Milwaukee's Hampton Avenue and turned their plans into a friendly flip contest. The winner was whoever finished faster and did the better job overall. Paul bought first, and Kinyata had to wait for a tenant to move out. But her crew kept the work moving consistently, and Paul finalized his signature high-end touches, while their lender kept the money moving right along with them.
Kinyata's flip finished in about 35 days and went under contract before Paul, but is the first to finish the actual winner?
Partners since 2014, rivals on Hampton Avenue
Kinyata and Paul have flipped houses together since 2014. Over the years, Paul kept adding projects until he was managing nine or ten at a time, and Kinyata grew her résumé as an investor, a real estate agent for investors and a highly sought-after stager.
When her uncle needed some support because of his health, Kinyata put her seemingly endless energy into helping him. The two started a flipping company together and built their own construction crew, one that handles every trade except HVAC. That put her back in the flipping game, and when two properties came up on Hampton Avenue, she and Paul decided to turn the projects into a friendly competition.
Two ways to win, one six-month clock
The better house would win on speed and what buyers notice when they walk in. Paul has a signature there. He puts pot fillers in all of their houses, which earned him the nickname "Pot Filler P" among their investor friends. Kinyata's standard is quality; she hears potential buyers at her showings say the house looks just as good as it does in the pictures.
Speed means the time from purchase to a signed contract, and on a hard money flip, that number shapes the profit. Hard money is built for flipping. It closes fast enough to compete with cash buyers, it funds the renovation, and its term is short by design, typically six months from purchase to sale. Investors who finish early pay less to carry the house and get their money into the next deal sooner. Those who run long can extend, but extension fees and additional months of interest come out of the profit.
"Sometimes you do have projects where the profit margin is big enough where you can afford to do those extensions, but that's not most times," Kinyata says. "The average flip, you don't have the room to do that."
A lender who keeps pace with the crew
A fast crew still depends on the money behind it. Materials have to be bought, and trades have to be paid. On a six-month clock, a late draw or an unanswered question to the lender costs days the borrower can't get back. For about four years, Kinyata and Paul have financed most of their deals with Debra Hayes at MGM Private Capital, including the Hampton Avenue flips, and Debra has always kept things moving.
"She's on top of everything. There's never a delay with funds or communication, period. If I have questions about anything, I can always call her."
Kinyata wants to understand every loan she signs, even though lending isn't her business, and she's used to asking people to explain things to her as simply as they can. With Debra, she never had to ask. "She just explains everything so clearly," she says.
Debra also shows up. "She really had care and concern about what we were doing." She visits the Hendriexes' job sites and brings other people to see their work.
Paul took the kitchen. Kinyata took the race.
In the end, Kinyata gives Paul the win on finishes. She walked through his house before it went on the market, and he went all out on a large kitchen with a waterfall-edge island, built with the cabinets she likes best. "I had to take my hat off, had to give it to him."
On speed, the contest wasn't close. Paul bought first, but he spread his time across nine or ten projects, while Kinyata and her uncle kept their own crew on one house. That focused crew is what she considers the key. "You can have a billion dollars and a billion houses, but if you don't have anyone to put it together, all you have is an unfinished house." Kinyata's house was finished and under contract in about 35 days.
That leaves the household scoreboard at one category each, the bragging rights split. Kinyata delivered speed and quality on one house, and Paul delivered high-end finishes that earned the “better” label.
Paul's continuing his signature pot-filler design feature on his remaining projects, while Kinyata and her uncle have moved on to the next deal, a property on Milwaukee's South 8th Street.
Kinyata's advice for investors ready to do more
Always having the next deal ready is a big part of what Kinyata and Paul now teach other flippers. They walk new investors through the entire process so others can skip the mistakes they made early on. Kinyata's advice for anyone ready to take on more always starts with the crew.
"Make sure your team is ready, meaning your contractors are ready." A crew without work will move on to another investor's project, so she keeps hers busy: "Make sure you have that next one lined up before you close on the last one."
Keeping deals moving also means letting go of a target profit. A house priced to hit a number can sit, and on a six-month loan, sitting adds costs. "If I make $5,000 and it took us three months to do it, I'm cool with that, as long as it's not an L."
And she buys with the calendar in mind. Buyers thin out once school starts and the holidays arrive, so she buys in September and October and has the house ready to list when the spring market brings buyers back. "They call it spring market for a reason."
The Bottom Line
Kinyata won the race with her own crew focused on one house and a lender who keeps the money moving as fast as the work. Paul still holds the title for best kitchen, and with both of them already on their next projects, the friendly competition is far from over.
If you're planning your next flip and want funding that keeps up with your crew, send your deal to Debra at debra@mgmprivatecapital.com.
————————————————————————-
Legal Disclaimer:
This article is provided for informational and educational purposes only and is not intended to constitute legal advice. Real estate regulations can be complex and situation-specific. Readers should consult with qualified legal counsel or a licensed attorney for guidance regarding their particular transaction or compliance obligations.
At MGM Private Capital, we actively support real estate investors across Southeastern Wisconsin with trustedcapital options and offer opportunities for capital partners to grow alongside us.