Did first flip in 2010, then switched areas to focus on a lower income county in the DC Metro area and did 3 flips in 2011.
Stayed in same area, got credit line with local bank, and did 8 flips in 2012. In October of that year was able to quit my job and invest full time.
In 2013 did 17 flips.
Hopefully 20-25 flips in 2014- though market for investor properties is really tight now so we'll see. Should at least clear 20 though.
I haven't been very active on BiggerPockets but plan to change that. Try to help people out where I can. And I still have plenty to learn.
What a great success story! Thanks for sharing and good luck reaching your goals for 2014.
That's awesome @Jonathan C. ! Thanks for sharing your story! I love to hear stuff like this.
Any good tips for managing that many flips?
The key for me has been (through trial and error unfortunately) finding 2 good contractors who I can be almost entirely hands off with and leveraging some basic technology so I focus most of my time and attention on finding deals.
I've found that in order to do a decent volume of houses the vast majority of my time and attention needs to be on finding good deals, since that's the hardest part of this.
Having really solid contractors who can make some minor paint/tile/house layout decisions and do a decent job with it has been crucial.
Also- leveraging basic technology- for example I have a part time employee I pay to go around to all my rehabs once per week to take 5-10 minute videos and upload them to my google drive. This allows me to manage the rehabs without having to actually go visit the houses.
Also a big fan of using oDesk and other virtual assistants to outsource most of my document signing and other admin work.
Wtg @Jonathan C. That's the way to do it? Just wondering how you find your deals primarily?
Congrats! What's the best way to find a good and reasonable contractor? I got a bid on a house in Grand Rapids mi for 75k$ for a total gut which in thought would have been around 40.
@Account Closed 80% of my deals come from listed properties. I make 2-6 offers a day usually 6 days a week. Almost all my listed deals since the investor market has gotten much more competitive have been short sale deals where the seller accepted (and bank ultimately) approved a price that was much less (15-30% I'd say) than the list price. In other words, I make a ton of low ball offers and see what sticks :)
The other 20% are from direct marketing and relationships I've been able to start to build with some wholesalers, hard money lenders, and some agents I've done business with before.
I also wholesaled 8 houses that year- those were 100% from my direct marketing. I sent out 4,000 yellow letters/mo last year. This year bumped it to 6000 letters/mo.
@Drew Denham 2 main ways I'd recommend:
1- network with other investors, do your best to get them to like you, and ask them for contractor referrals. The problem is a lot of investors who have good contractors won't refer them out because they don't want them spread too thin, so it's going to be a bit of a numbers game here as well. You'd do this through WREIAs primarily
2- Another way, which is how I found 1 of my 2 main crews, is to call up rehab material suppliers. I called my cabinet supplier and asked him if he knew any good contractors and he gave me the name of the guy I work with now.
@Jonathan C. Thanks for the write-up. If you get some time, out of your 2013 flips, would you give some background (story) on the your best and worst out of those 17 flips? Lessons learned?
Sam J. yeah no problem. I'll also try to post some info on some of the flips I am currently doing that have some stuff that other people may be able to learn from.
sounds amazing! I was wondering who do you have answering phones and talking to potential sellers from your direct marketing? With that much mail going out you must be getting a decent amount of calls.
Congratulations! How are you coming about the listed properties? Do you have access to MLS or are you working through realtors?
@Jessica H. Yeah I get a decent amount of calls, but (unfortunately) still a volume that I can easily handle myself. I have all direct mail calls going to a message that sounds just like a personal answering machine (basically 'hi, this is jon, leave a message and I'll get right back to you). The motivated ones, 9 times out of 10, leave a message, so I call those back first. Then I call through the hang ups as time permits. Those usually aren't worth much.
I had a longer, screening message before, but even with 1,500 letters a week, I'm only getting about 8-15 calls per week, so I don't have enough volume to make it so I need to screen people out. I basically call everyone back who calls me, but I wouldn't want it ringing to my cell, because that would be really distracting.
@Account Closed I have access to the MLS. I would strongly, strongly recommend anyone who is serious about real estate investing to get their license. You just don't have access to the best repository of information (MLS) otherwise. And when I'm comping properties, and staying on top of properties just put on market, I want to have the best information I possibly can.
Thanks for posting this
With the volume your doing I'm glad you posted its a numbers game.
Out if the 2-6 offers your writing per day how many properties are you looking at to garner that many offers?
What's your success rate with the low offers.? 15-30% under ask is pretty significant ...
Any automation tips on the offers? Personally I write all mine on an iPad usually from the car using PDF Expert
@Jonathan C. You've got one heck of a thing going for yourself. Congratulations! Your website is also very clean too..I like the video on the front page. Have you considered scaling your business into other markets? Also, what are the other three brothers' roles in the day-to-day business?
Thanks @Jonathan C. that makes perfect sense!
@John Weidner Usually with my searches in my areas I'm evaluating about 20-35 properties/day, and I make offers on 2-6. I have to offer on (roughly) 40-50 properties to get 1 offer accepted. It takes me about 1-2 minutes to comp each property- usually in total it's an hour or less each day.
Yeah the automation part is absolutely key. Here's my process:
1- run MLS searches
2- copy and paste MLS results in unformatted text format into a spreadsheet
3- sort the results by subdivision
4- run the comps for each one
5- figure an ARV number for each one
6- use my formula of 73% ARV less 55,000 repairs to automatically calculate the offer on each on *I will adjust repair number down to 48,000 for townhouses and up to 60-65k for larger properties or ones that need a lot of work
7- put in offer instructions for each one
-send to assistant-
8- have my virtual assistant (found on odesk) access my spreadsheet through google drive (all my stuff is done through google drive)
9- asst will use a program called 'pdfill' to populate the date, address, and offer price in my offer template (offer template is a completed offer with everything signed and filled out except for those couple of fields I just mentioned) *takes about 30-60 seconds to fill this out
10- asst sends offer in to email address or website listed on the spreadsheet
@Michael Jobe thanks- just redesigned it. Still have work to do to make it better, but it seems to do a good enough job building credibility with homeowners so they feel like we're a real company vs someone who doesn't know what they're doing.
Yeah I'm interested in going into other markets at some point. Actually have a friend in Philly and I'm seeing if I can work with him to get him going with some wholesaling and then possibly getting into rehab.
I'm interested in trying to expand into other markets and do bigger deals where I am- first step in that will probably be buying small 2-4 unit building and converting to condos. That's big in my area
Other brothers not too involved in day to day. They're a small part of what I do.
Great Job! You are crushing it!!
I'm a rehabber/wholesaler as well and mainly find my deals through direct mail but am wanting to start MLS offer's ASAP. I appreciate your step by step detailed instructions above..
Usually with my searches in my areas I'm evaluating about 20-35 properties/day, and I make offers on 2-6. How do you qualify the 20-35 propeties/day - Foreclosure/Short Sales only??? Can you define your search criteria in the MLS?
asst will use a program called 'pdfill' to populate the date, address, and offer price in my offer template (offer template is a completed offer with everything signed and filled out except for those couple of fields I just mentioned) *takes about 30-60 seconds to fill this out.... Is your offer template a standard real estate contract or a made up offer template? It seems that most of the deals on the MLS make you jump through several hoops just to make an offer... Have you heard of a software rapidoffergenerator.com?
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