How I flipped my way through the 1st deal with one hand

32 Replies

After all these months watching HGTV and reading books. I was finally able to pull out a modest profit on my 1st flip deal. I’m grateful that after all the startup cost and unexpected issues, I was able to come out above the water. The profit I gain is modest but lessons and experience is priceless. Hopefully I will be ready for the next project

Acquisition: this deal is located near Houston Texas that I bought from a wholesaler since deal on MLS is drying up. $75000$ for a nice 2 stories house with pool and spa. It needs tons of repair. In fact, I think I rehabbed just about every single thing in the property except the roof.

Financing: I did all my financing homework prior to the deal. I was fortunate to have relationship with a portfolio lender and equity partner. Prior to the acquisition I already put up our rental houses as collateral and have a credit line in ready mode to purchase the property

Rehab: This is the hardest rehab I ever done in my life! It was nothing but hard work, pain and headache! For those like me who like to watch HGTV and dream about a million dollar flip. This will be your reality check.

Almost everything you touch will go wrong unexpectedly from the pool, AC, electrical, plumping, exterior, etc…I originally budgeted for $27000 in repair and ended up spending $37000. I learned tons of lessons on estimating rehab as well as thing that could go wrong unexpectedly. Hopefully on the next deal the number will be closer.

One in many reasons the number is so off because I factor myself in doing some of the work. Unfortunately, I was involved in a major motorcycle accident during the rehab period and crack my left shoulder. I ended up have to hire out the stuff that I plan to do myself. And if it wasn’t for my girlfriend helping me out with lot of stuff that I supposed to do. I would lost money on the deal.

Do not factor yourself into the equation. It is NOT worth it. I learned it a very hard and painful way. I literary do everything I could to flip this house with one hand.

Selling: I strongly recommend reading J Scott flipping house book. The biggest thing I learned is dealing with the appraiser. I followed everything that J Scott recommended in that book and has no issue with the appraisal. The appraiser also appreciated the fact that I am knowledge and make his life so much easier. Remember to price is right or a little bit below market value in the beginning as well. I was greedy and priced it a little more than market price and it gave me nothing but extra holding cost. I was lucky to nail a buyer for $139000 at market value

After all the startup cost, realtor cost, title cost, tax , buyer closing cost which I left out in the beginning, I was still able to come out above water and split the profit with my equity partner.

I hope this will help for anyone who is looking to do their 1st flip. I’m down one hand and encountered so many issues and still manage to push through. Hopefully it will inspire you!

Nice! The experience gained very beneficial for future endeavors...keep it moving!!

Great job @Huy N. Thanks for sharing. I'm still in the reading stage. I hope to post my first deal within the next six months. Your post is very motivating. Thanks again for sharing the good with the bad.

@Huy N. Thanks for sharing! It is inspiring! Sorry to hear about the motorcycle accident.

thanks everyone for the comment!

@Peggy Liu , thanks for the post. Unfortunately it took me an arm to realize that i need to work ON my business and not IN my business. i was lucky to walk away in one piece after such accident. I am trying to redesigning the way the business should run now so that it should run without me and any appointed individual should be able to pick it up in my absence

Huy,

If you don't mind my asking, What was your final profit? I mean the number after all expenses and closing costs. The dollar amount you put into your pocket at closing. I understand if you do not want to share that number here on the forum.

Congratulations! Great lessons learned through reading your post.

I also highly recommend purchasing J Scott's books. Others simply don't compare.

Nice work!

Originally posted by @Ronnie Sparrow :
Huy,

If you don't mind my asking, What was your final profit? I mean the number after all expenses and closing costs. The dollar amount you put into your pocket at closing. I understand if you do not want to share that number here on the forum.

Hi Ronnie,

Np I don't have a final number yet, i still have bill that yet to pay but it's very modest in 4 digits range. i'm content with the number still after tons of mistake and stuff that happened during the rehab.

thanks for all the comments everyone!

Great results! Very inspiring.

How long did it take you?

@Huy N.

Inspiring & looks great.

Next one with both arms; you shall double your profit and more.

Lucky you, you are in one piece & still make some $$$.

Congrats @Huy N.

I used to live in Houston and LOVED IT there, unfortunately had to come back to Missouri but I hope to gain an opportunity that well allow me to relocate there again!

Inspiring, Best of luck in your future!

Congrats Huy!

What wholesaler did you buy the property from?

@Sam Craven  

I bought this one from NewWestern

@David C.  

 It took me about 5 months from the date i signed the contract to buy to the date i went to the closing table

@Huy Nguyen

Congratulations, they make it look so easy on HGTV don't they. Glad you survived the wreck and rehab :-)

hey, it's better to lose some money and learn than sit in a cubicle trying to get the courage to pull the trigger!

@Chris Parkey  ,

Rights! like i said, this is my reality check! i'm grateful to survive both 

@George P.  

Right on point, i have to keep on telling myself if i lost money on this deal or any other deal, consider it as tuition for real estate school and move forward!

@Huy N.   great job on your first flip!  Since there are so many variables involved, including a lot of unknowns (especially for repairs), squeaking out a small profit on your first flip is a big success!  As you fine tune your rehab estimating and project management skills each flip after this one should get easier.  

Lessons learned are so invaluable, especially not doing all ( or a lot ) of the work yourself!

Hey Huy, thanks for sharing your experience, and congratulations on your first deal.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here