Flipping Houses

The “3 P’s” That Helped Us Land Our Very First Million Dollar Fix & Flip [Video!]

Expertise: Real Estate Investing Basics, Real Estate Deal Analysis & Advice, Mortgages & Creative Financing, Landlording & Rental Properties, Business Management, Personal Development, Flipping Houses, Commercial Real Estate
161 Articles Written
million-dollar-flip

Hey there, BP! We are so excited about our most recent fix and flip project. It's a huge home in a great area that we saved from foreclosure. It was literally a few days from the courthouse steps when we bought it. In this video, learn about the 3 factors that led us to this deal — what I call "the 3 P's"!

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  • Plan: To bring about what you want to see in your business, you need an effective plan. That should include as much detail as possible — what types of deals you want to do, how many of them, what your target profit margin is, and what the key people and processes that need to be in place to make your deal happen are.
  • Process: You need to have an infrastructure in place so that when that big deal gets reeled in, you can bring it to fruition. That process includes everything from how you are going to fund the deal to who will do the rehab work and how you will resell it.
  • People: People are the most important part. Once you get your plan and process flat, it’s time to get out there and start telling everyone in your network about them. Also, think about people you don’t know yet who would be able to help you meet your goals. Make the reach outs and let them know that you are ready to move on a deal when it comes up.

Related: House Flipping: 5 Vital Tips for Success (Based on My Mistakes!)

Check out the video attached to learn more.

If you watched the video, please leave a comment so we can get a good conversation going on this.

Happy investing!

Matt Faircloth, co-founder and president of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, New Jersey, i...
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    Nicholle McKenzie from Dortmund, Nordrhein-Westfalen
    Replied over 4 years ago
    Congratulations to you and thanks for posting the video! The information was great and I love your reminder to set goals, manifest it and put it out into the universe!
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied over 4 years ago
    Hi Nicholle, Good to hear from you! If you write your goals, talk about them, and see them coming true in your mind there is nothing that can stop you. Good luck!! Matt
    Donald Capwell Rental Property Investor from COLORADO SPRINGS, CO
    Replied over 4 years ago
    Congrats, Matt! First, I enjoy your videos! Next, how about some numbers to show how you evaluated this? I know it’s too early for finals… Also, how long did you plan this to take?
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied over 4 years ago
    Hey Donald! Glad you enjoyed. I am planning on doing a follow up video with some more details on the rehab plan and on the numbers. Stay tuned! Matt
    Donald Capwell Rental Property Investor from COLORADO SPRINGS, CO
    Replied over 4 years ago
    Looking forward to it! Thanks
    Bao Nguyen Investor from Lansing, Michigan
    Replied over 4 years ago
    Good job Matt. Could you share some numbers and timelines and other details about this flip?
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied over 4 years ago
    Hey Bao, Thanks – stay tuned for more details on this one! Matt
    Ashley Wilson Rental Property Investor from Radnor, PA
    Replied over 4 years ago
    Congratulations! Being from PA (mainline area), and flipping there as well, I am especially excited for you! I think your 3P’s are excellent, and I completely agree with them. I have looked into some more expensive homes (ARV 1mil+ range), however, I was a bit concerned about the holding time. It seems that on the mainline the time on market dramatically increases when you get above a certain threshold (in our area I believe it to be 650-700 is the threshold). Thus, I was thinking it might be more beneficial to go after homes with ARV at a max of 650/700. Another benefit too, is the ability to spread out the risk, for example if you are doing two houses compared to just one. What are your thoughts on that? As I am still relatively new to this, I would love to learn more from you, especially considering our geographic connection. Thank you again for a great post!
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied over 4 years ago
    Thanks Ashley! Good to hear from you! I love the Main Line area, I used to live in Conshohocken and Manayunk before that. This particular house is in the Langhorne area so not too far. We ended up using bank financing after doing the math on what a private lender or hard money would cost us on a deal of this size. Total hold time in our budget is 5 months – 2 months for rehab and 3 months for sale. We have seen the same absorption rate for other properties of this size in this area. Since you are local (and to anyone else out there from NJ or PA) you should consider coming out to our REIA Group in Princeton. More info is at http://www.SJREIA.org/Central. I hope to see you there! Speak soon! Matt
    Ashley Wilson Rental Property Investor from Radnor, PA
    Replied over 4 years ago
    Thank you Matt for the information and the offer. I will definitely make a point to make one of the future meet-ups! Looking forward to meeting you and wishing you the best on this house and the rest of 2016!
    Steve Francis from Conshohocken, Pennsylvania
    Replied over 4 years ago
    Congratulations Matt! I love the 3 P’s! I look forward to hearing more about the numbers. I live in Conshohocken now and settling on my first duplex rental in Bridgeport next week. Just getting started in the game here. I’ve also been looking for fix and flips in Montgomery county. Your story is very inspiring especially since we’re in the same area. Congrats again!
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied over 4 years ago
    Hey Steve, Congrats on your first Duplex. I may have said this before but I used to live in Conshohocken, I love that area! I think there is even more room to grow there. Best of luck with your searches for deals! Matt
    Prince Finney from Pittsburgh, Pennsylvania
    Replied over 4 years ago
    Great job, I’m acasually working on similar project I landed a great deal on a 400,000 property .
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied over 4 years ago
    Hi Prince, Glad you enjoyed the video! Where is your $400K deal? How are things coming along? Matt