Melisa Clement resides just outside of Austin, Texas—one of the fastest growing markets in the U.S.
Starting Out in Real Estate
Melisa was an art major in college but felt for a time that she didn’t have an outlet for her creativity. After falling in love with the design process of remodeling her own home, Melisa started her journey in house flipping.
She began as an interior designer, which morphed into staging homes for her friend who was in real estate. Alongside that friend, Melisa also began staging homes for other house-flippers in her area.
What was unique about Melisa’s story is that she financed her first house flip by cashing out her home. From there, we asked how she was able to build her business to where it is today (listen to the episode above for all the details). Melisa emphasized the importance of building brand awareness in a number of ways.
Growing a House Flipping Business
First and foremost, Melisa focuses on flipping the worst houses in the best neighborhoods with the best school districts. By following these criteria with three to four homes a year, Melisa has been able to establish a brand for herself, where she’s recognized for her unique style in renovations in the northwest Austin area.
Secondly, Melisa has focused on fostering her community on Instagram, which has helped grow her business and spread awareness about new projects. By being active on social media, she’s been able to build a loyal following—something that’s tremendously helped her designs and work to now be in high demand.
We asked Melisa about her best deal ever and her mindset approaching investments—what we found out might shock and inspire you!
Melisa says she strives to do a total house flip, spending at least $150,000 on each renovation.
This Investor’s Best Deal Ever
Melisa’s best deal ever was sourced through a local wholesaler who knew she liked purchasing houses within a specific zip code (and neighborhood). This particular home was bought for $507,000.
The home was priced right, but the downside was that she’d have to wait to start renovating, as the owners wanted a lease back. This house also retained a lot of its original paintings and pieces from the original owner, which turned out to be helpful in providing value.
Renovations were extensive, spanning from the smaller, fine details to creating an attractive pool. After $150,000 of renovations to perfect the property, Melisa listed the home for $899,000. Within 24 hours, she had multiple offers, eventually selling for $925,000.
Melisa says the profit was approximately $230,000 after closing costs!
With numbers like that, we were curious to know what Melisa typically advises and does for funding. She revealed that she and her husband purchase properties through multiple retirement account types (three self-directed LLCs through an IRA account and a personal LLC).
Flipping Business Outlook
Melissa has a crew of seven employees with additional subcontractors that work on specific renovations for her projects, including tile, plumbing, and electrical.
Having done this business model well, we had to ask: “How did you do it?!”
Ultimately, Melisa’s guiding principles are being generous and conscientious in how she deals with people and how she cares for the homes that she renovates. These are in turn the keys to her success.
Additionally, she emphasized that doing renovations the right way—sparing no detail—has helped her build a brand in her region. So much so, that people literally line up for her next flip, knowing that a home renovated by Melisa will be designed and finished to the highest quality standards.
What was your best deal ever—or the best deal you’ve ever heard about?
Share in the comment section below.