Over $200,000 Profit in one deal at age 22!

48 Replies

Hey guys, so I want to share my experience with you guys, I hope it inspires many of you who are starting out. 

I am from Venezuela and moved into the U.S only 11 months ago at the age of 21, as soon as I arrived I started learning Real Estate, I am an Engineer so numbers are my thing, so after a few months of hardcore preparation, I obtained my Real Estate License and quickly applied my knowledge and tools to Real Estate Investing.

I found this deal after several weeks of nonstop door-knocking in Miami, it was hundreds of doors knocked and rejections before I was able to find this hidden gem.

This property was in pre-foreclosure status when I found it.

Here is how the deal went down:

Purchase Price: $99,800 + Closing Cost: $3200

Rehab: $50,000 

ARV: $250,000

Description: 3/1 SFH in OK condition in a fast growing area in Miami, full interior rehab was done. several comps of similar properties in the area have sold between $230,000-$280,000 price range. The property will be listed for $250,000

Bonus: Property is 10,000 SqFt and is currently being split into two 5000 SqFt lots, giving me a 5000 SqFt vacant land which sells for $120,000 (Cash offer is on the table waiting for the county to finish the lot split.)

Cash Invested in the deal: $153,000

Brought in a Partner to put most of the cash in the deal and split profits 50/50.

Net Profits: $90,000 (Fix-&-Flip) + $115,000 (Vacant Land) = $205,000.

Consistency is everything. It is painful at first but I promise you it will pay off!

"Success isn't always about greatness. It's about consistency. Consistent hard work leads to success. Greatness will come. "

-Dwayne Johnson


I wish the best to all of you and hope this experience inspires you, I will share my experience with you guys soon, stay tuned, great things to come!

This is a 3 bedroom 1 bathroom house with 10,000 square feet????

Hmm.... you would have thought the architect would have found a way to add another bathroom to this mansion

I think the land the units are on is 10,000 square feet.

That sounds fantastic though! Congratulations on your success!

Originally posted by @Matthew Irish-Jones :

This is a 3 bedroom 1 bathroom house with 10,000 square feet????

Hmm.... you would have thought the architect would have found a way to add another bathroom to this mansion

 The land is 10k sq ft. Read the next sentence where he mentioned two 5k lots. The vacant one selling for 120k.

To OP - Nice deal! I'm doing something similar. Bought a house on half an acres, in town,  dividing it in two with the short plat about to go in for permit. But instead of selling the lot (thats my backup plan) I'm going to build a duplex on it. Also instead of flipping the house I am living it. I will eventually flip the house but not till after the duplex is built. That will allow me to do work on the duplex myself and be a lot easier on the family life. Did you ever consider building on your vacant lot?

Originally posted by @Matthew Irish-Jones :

This is a 3 bedroom 1 bathroom house with 10,000 square feet????

Hmm.... you would have thought the architect would have found a way to add another bathroom to this mansion

Please read, I apologize if I was not clear enough. House is 1000 Sqft, Land 10,000 Sqft, however, I believe it is kind of obvious though. 

Originally posted by @Nik Moushon :
Originally posted by @Matthew Irish-Jones:

This is a 3 bedroom 1 bathroom house with 10,000 square feet????

Hmm.... you would have thought the architect would have found a way to add another bathroom to this mansion

 The land is 10k sq ft. Read the next sentence where he mentioned two 5k lots. The vacant one selling for 120k.

To OP - Nice deal! I'm doing something similar. Bought a house on half an acres, in town,  dividing it in two with the short plat about to go in for permit. But instead of selling the lot (thats my backup plan) I'm going to build a duplex on it. Also instead of flipping the house I am living it. I will eventually flip the house but not till after the duplex is built. That will allow me to do work on the duplex myself and be a lot easier on the family life. Did you ever consider building on your vacant lot?

Hey Nik, 

Thanks for clearing that out for me!!

That sounds like a great deal, did you buy the property at a great discount?

Indeed our situation is very similar, the original plan was to demolish the house and build an 8 unit building, however, I moved forward with keeping the house to flip it and dividing the property into two lots. Fortunately, The zoning of this property is decent and allows me to build 4 units on the 5000 sqft vacant lot.

If I do not find a better investment for the $120K from the lot, I will definitely build a fourplex and hold it for a decent cash-flow, equity, and appreciation.

I'd like to see how your deal goes, it seems fantastic, I truly wish you all the best buddy!

Originally posted by @Scott Kimberly :

I think the land the units are on is 10,000 square feet.

That sounds fantastic though! Congratulations on your success!

Thats correct Scott, the land is 10,000 square feet and the house is 1000 square feet with 3 bedrooms and 1 bath.

Thank you my friend, I wish you the best of luck in your endeavors!

Originally posted by @Jean Paul Castellanos :
Originally posted by @Nik Moushon:
Originally posted by @Matthew Irish-Jones:

This is a 3 bedroom 1 bathroom house with 10,000 square feet????

Hmm.... you would have thought the architect would have found a way to add another bathroom to this mansion

 The land is 10k sq ft. Read the next sentence where he mentioned two 5k lots. The vacant one selling for 120k.

To OP - Nice deal! I'm doing something similar. Bought a house on half an acres, in town,  dividing it in two with the short plat about to go in for permit. But instead of selling the lot (thats my backup plan) I'm going to build a duplex on it. Also instead of flipping the house I am living it. I will eventually flip the house but not till after the duplex is built. That will allow me to do work on the duplex myself and be a lot easier on the family life. Did you ever consider building on your vacant lot?

Hey Nik, 

Thanks for clearing that out for me!!

That sounds like a great deal, did you buy the property at a great discount?

Indeed our situation is very similar, the original plan was to demolish the house and build an 8 unit building, however, I moved forward with keeping the house to flip it and dividing the property into two lots. Fortunately, The zoning of this property is decent and allows me to build 4 units on the 5000 sqft vacant lot.

If I do not find a better investment for the $120K from the lot, I will definitely build a fourplex and hold it for a decent cash-flow, equity, and appreciation.

I'd like to see how your deal goes, it seems fantastic, I truly wish you all the best buddy!

 No deal. This was at market value. Paid 420k for the house on .5 ac. After splitting the lot it should value in around 100k ish. I plan on using that value as collateral for the construction loan plus the cash I have in savings. I also have another house (that I moved from to move into this) as collateral as well. Its currently being rented and cash flows about $400/m. It also has about 50-70k in equity. My small town doesnt have the density that Miami does so I can only get two units on a 10,000 sf lot, hence why I'm doing a duplex. This code is changing in 2020 for more density but I'm not going to wait that long, holding costs would really hurt. So I'm planning on a duplex no mater how that changes the density. but what I am doing is making sure the duplex is pushed to the far side of the property as much as I can. That will allow me to do a boundary line adjustment later to increase the yard of the main house, which in turn increase it value. Well I should say it off sets the decrease in value from splitting the lot. Though by that time, with appreciation and some repairs I'm confident I can at least break even if not a small profit. So at that point I basically get an in-town lot in a great area for free. So only cost I have is the build cost...and taxes of course...damn taxes.... 

EDIT: Oh I do want to add I get to cut a large chunk of my soft costs off for the build bc my day job is an architect. So I get all those fees for basically free. Just my personal time on nights and weekends. Since I know how to do all the permit filing and running thats sazing there to. That important to factor in for builds because a lot of constructions loans will NOT cover soft costs. Thats an out of pocket expense.

@Jean Paul Castellanos I dont understand some things. Could you explain to me? You said 153k cash invested in the deal ( thats your partner's money. right? Then the property went up in value so its now 250k. Ok, Then you pay your partner 250k - 153k = 97k ? Where did you get the 200k from? Also, didnt he make money from this investment? Thanks

Originally posted by @Nik Moushon :
Originally posted by @Matthew Irish-Jones:

This is a 3 bedroom 1 bathroom house with 10,000 square feet????

Hmm.... you would have thought the architect would have found a way to add another bathroom to this mansion

 The land is 10k sq ft. Read the next sentence where he mentioned two 5k lots. The vacant one selling for 120k.

To OP - Nice deal! I'm doing something similar. Bought a house on half an acres, in town,  dividing it in two with the short plat about to go in for permit. But instead of selling the lot (thats my backup plan) I'm going to build a duplex on it. Also instead of flipping the house I am living it. I will eventually flip the house but not till after the duplex is built. That will allow me to do work on the duplex myself and be a lot easier on the family life. Did you ever consider building on your vacant lot?

I am working with a builder/developer who is an expert at historic platted lot situations like this we are actually going to have a system that details exactly how to do these with a very robust on line app that spells it out in most all markets in the US.  instead of generic info most gurus sell this one is packed full of real information that will work  LOL  congrats on yours.

Originally posted by @Fili Aguirre :

@Jean Paul Castellanos I dont understand some things. Could you explain to me? You said 153k cash invested in the deal ( thats your partner's money. right? Then the property went up in value so its now 250k. Ok, Then you pay your partner 250k - 153k = 97k ? Where did you get the 200k from? Also, didnt he make money from this investment? Thanks

Hey Fili, good question, of course, my partner made good money from this investment, he recovers 100% of his investment when the property sales he takes back the 153K invested plus 48.5K from the house + 57.5K from the land in net profit.

I walk away with the same amount. In the end, we both end up with over 100K in each of our pockets.

Hope that clears out everything for you!

Originally posted by @Nik Moushon :
Originally posted by @Jean Paul Castellanos:
Originally posted by @Nik Moushon:
Originally posted by @Matthew Irish-Jones:

This is a 3 bedroom 1 bathroom house with 10,000 square feet????

Hmm.... you would have thought the architect would have found a way to add another bathroom to this mansion

 The land is 10k sq ft. Read the next sentence where he mentioned two 5k lots. The vacant one selling for 120k.

To OP - Nice deal! I'm doing something similar. Bought a house on half an acres, in town,  dividing it in two with the short plat about to go in for permit. But instead of selling the lot (thats my backup plan) I'm going to build a duplex on it. Also instead of flipping the house I am living it. I will eventually flip the house but not till after the duplex is built. That will allow me to do work on the duplex myself and be a lot easier on the family life. Did you ever consider building on your vacant lot?

Hey Nik, 

Thanks for clearing that out for me!!

That sounds like a great deal, did you buy the property at a great discount?

Indeed our situation is very similar, the original plan was to demolish the house and build an 8 unit building, however, I moved forward with keeping the house to flip it and dividing the property into two lots. Fortunately, The zoning of this property is decent and allows me to build 4 units on the 5000 sqft vacant lot.

If I do not find a better investment for the $120K from the lot, I will definitely build a fourplex and hold it for a decent cash-flow, equity, and appreciation.

I'd like to see how your deal goes, it seems fantastic, I truly wish you all the best buddy!

 No deal. This was at market value. Paid 420k for the house on .5 ac. After splitting the lot it should value in around 100k ish. I plan on using that value as collateral for the construction loan plus the cash I have in savings. I also have another house (that I moved from to move into this) as collateral as well. Its currently being rented and cash flows about $400/m. It also has about 50-70k in equity. My small town doesnt have the density that Miami does so I can only get two units on a 10,000 sf lot, hence why I'm doing a duplex. This code is changing in 2020 for more density but I'm not going to wait that long, holding costs would really hurt. So I'm planning on a duplex no mater how that changes the density. but what I am doing is making sure the duplex is pushed to the far side of the property as much as I can. That will allow me to do a boundary line adjustment later to increase the yard of the main house, which in turn increase it value. Well I should say it off sets the decrease in value from splitting the lot. Though by that time, with appreciation and some repairs I'm confident I can at least break even if not a small profit. So at that point I basically get an in-town lot in a great area for free. So only cost I have is the build cost...and taxes of course...damn taxes.... 

EDIT: Oh I do want to add I get to cut a large chunk of my soft costs off for the build bc my day job is an architect. So I get all those fees for basically free. Just my personal time on nights and weekends. Since I know how to do all the permit filing and running thats sazing there to. That important to factor in for builds because a lot of constructions loans will NOT cover soft costs. Thats an out of pocket expense.

Sounds great brother, the fact you can break even or even make some profit while being able to keep a lot in a good area for free makes the deal attractive, maybe you could bring in a partner to build on the lot if the numbers work for both of you?

The fact that you have the advantage of having that knowledge and knowing how to do the logistics for the permits is a very valuable skill in this business, I'd like to see how everything goes for you brother and really wish you all the best!

Originally posted by @Jay Hinrichs :
Originally posted by @Nik Moushon:
Originally posted by @Matthew Irish-Jones:

This is a 3 bedroom 1 bathroom house with 10,000 square feet????

Hmm.... you would have thought the architect would have found a way to add another bathroom to this mansion

 The land is 10k sq ft. Read the next sentence where he mentioned two 5k lots. The vacant one selling for 120k.

To OP - Nice deal! I'm doing something similar. Bought a house on half an acres, in town,  dividing it in two with the short plat about to go in for permit. But instead of selling the lot (thats my backup plan) I'm going to build a duplex on it. Also instead of flipping the house I am living it. I will eventually flip the house but not till after the duplex is built. That will allow me to do work on the duplex myself and be a lot easier on the family life. Did you ever consider building on your vacant lot?

I am working with a builder/developer who is an expert at historic platted lot situations like this we are actually going to have a system that details exactly how to do these with a very robust on line app that spells it out in most all markets in the US.  instead of generic info most gurus sell this one is packed full of real information that will work  LOL  congrats on yours.

 Thanks Jay! When you get that app up let me know. That sounds very interesting and would love to check it out.

Funny thing about this lot....the city shows it as NEVER being platted. All the lots around are but this one was left out. Their best guess, and mine too, is that this house use to be part of a large farm/orchard. The owner then platted out or sold his fields to a developer who did but cut out his little half acre for himself. I am only the third owner of this house, which was built in 1926. So that part is pretty cool to think about. This means my short plat will be the first time that this half acre is actually platted. All the monuments the survey team found where actually for the corners of the surround lots, which does let us know where the boundaries of this lot is just in a backwards kind of way. 

Originally posted by @Jean Paul Castellanos :
Originally posted by @Nik Moushon:
Originally posted by @Jean Paul Castellanos:
Originally posted by @Nik Moushon:
Originally posted by @Matthew Irish-Jones:

This is a 3 bedroom 1 bathroom house with 10,000 square feet????

Hmm.... you would have thought the architect would have found a way to add another bathroom to this mansion

 The land is 10k sq ft. Read the next sentence where he mentioned two 5k lots. The vacant one selling for 120k.

To OP - Nice deal! I'm doing something similar. Bought a house on half an acres, in town,  dividing it in two with the short plat about to go in for permit. But instead of selling the lot (thats my backup plan) I'm going to build a duplex on it. Also instead of flipping the house I am living it. I will eventually flip the house but not till after the duplex is built. That will allow me to do work on the duplex myself and be a lot easier on the family life. Did you ever consider building on your vacant lot?

Hey Nik, 

Thanks for clearing that out for me!!

That sounds like a great deal, did you buy the property at a great discount?

Indeed our situation is very similar, the original plan was to demolish the house and build an 8 unit building, however, I moved forward with keeping the house to flip it and dividing the property into two lots. Fortunately, The zoning of this property is decent and allows me to build 4 units on the 5000 sqft vacant lot.

If I do not find a better investment for the $120K from the lot, I will definitely build a fourplex and hold it for a decent cash-flow, equity, and appreciation.

I'd like to see how your deal goes, it seems fantastic, I truly wish you all the best buddy!

 No deal. This was at market value. Paid 420k for the house on .5 ac. After splitting the lot it should value in around 100k ish. I plan on using that value as collateral for the construction loan plus the cash I have in savings. I also have another house (that I moved from to move into this) as collateral as well. Its currently being rented and cash flows about $400/m. It also has about 50-70k in equity. My small town doesnt have the density that Miami does so I can only get two units on a 10,000 sf lot, hence why I'm doing a duplex. This code is changing in 2020 for more density but I'm not going to wait that long, holding costs would really hurt. So I'm planning on a duplex no mater how that changes the density. but what I am doing is making sure the duplex is pushed to the far side of the property as much as I can. That will allow me to do a boundary line adjustment later to increase the yard of the main house, which in turn increase it value. Well I should say it off sets the decrease in value from splitting the lot. Though by that time, with appreciation and some repairs I'm confident I can at least break even if not a small profit. So at that point I basically get an in-town lot in a great area for free. So only cost I have is the build cost...and taxes of course...damn taxes.... 

EDIT: Oh I do want to add I get to cut a large chunk of my soft costs off for the build bc my day job is an architect. So I get all those fees for basically free. Just my personal time on nights and weekends. Since I know how to do all the permit filing and running thats sazing there to. That important to factor in for builds because a lot of constructions loans will NOT cover soft costs. Thats an out of pocket expense.

Sounds great brother, the fact you can break even or even make some profit while being able to keep a lot in a good area for free makes the deal attractive, maybe you could bring in a partner to build on the lot if the numbers work for both of you?

The fact that you have the advantage of having that knowledge and knowing how to do the logistics for the permits is a very valuable skill in this business, I'd like to see how everything goes for you brother and really wish you all the best!

 I'd prefer no partner but I'm not opposed to one either. It all depends on what the build costs end up being. If its over what I can get a loan for then I'll have to bring one in. I have a couple in mind but havent approached them yet.

I plan on starting a thread for my journey on this one but I'm waiting till I have more information and plans firmed up. I'll give you a shout when I do. I don't want to take away from your success on your killer deal so I'll shut up about mine now lol. If you ever got any questions or just need an opinion feel free to hit me up. Best of luck!

Do I need a real estate license to invest in real estate? It just seem like  that whole deal you just did could of been done without one? I ask because working full time job and 2 kids to raise my time is so limited

Hi Jean Paul, congratulations on the deal. Do you have pictures of the finished product? 

Congratulations on your success and thank you for sharing! I recently got my real estate license as well. I'm curious about your door-knocking strategies ... Did you use a realtor-kind of approach or directly as an investor? 

Originally posted by @Jean Paul Castellanos :

Hey guys, so I want to share my experience with you guys, I hope it inspires many of you who are starting out. 

I am from Venezuela and moved into the U.S only 11 months ago at the age of 21, as soon as I arrived I started learning Real Estate, I am an Engineer so numbers are my thing, so after a few months of hardcore preparation, I obtained my Real Estate License and quickly applied my knowledge and tools to Real Estate Investing.

I found this deal after several weeks of nonstop door-knocking in Miami, it was hundreds of doors knocked and rejections before I was able to find this hidden gem.

This property 1183 NW 26 ST, Miami FL 33127, was in pre-foreclosure status when I found it.

Here is how the deal went down:

Purchase Price: $99,800 + Closing Cost: $3200

Rehab: $50,000 

ARV: $250,000

Description: 3/1 SFH in OK condition in a fast growing area in Miami, full interior rehab was done. several comps of similar properties in the area have sold between $230,000-$280,000 price range. The property will be listed for $250,000

Bonus: Property is 10,000 SqFt and is currently being split into two 5000 SqFt lots, giving me a 5000 SqFt vacant land which sells for $120,000 (Cash offer is on the table waiting for the county to finish the lot split.)

Cash Invested in the deal: $153,000

Brought in a Partner to put most of the cash in the deal and split profits 50/50.

Net Profits: $90,000 (Fix-&-Flip) + $115,000 (Vacant Land) = $205,000.

Consistency is everything. It is painful at first but I promise you it will pay off!

"Success isn't always about greatness. It's about consistency. Consistent hard work leads to success. Greatness will come. "

-Dwayne Johnson


I wish the best to all of you and hope this experience inspires you, I have started my Real Estate Investing company called JP Capital International Investments and we're working on several projects, I will share my experience with you guys soon, stay tuned, great things to come!

 

extremely impressive... deals like this do not come easy at all (even with cash).

Hello Jean Paul,

Congrats on your door knocking results. Sounds like a fun and promising project and I wish you the best of luck but if I am reading correctly you are still working to rehab, list and also split the land and then close on both, correct?

Something you will learn as you go.....  don't count your profit (or spend it) until the deal is done and the money is in hand. Especially on your first few deals. You can expect it to take twice as long, cost twice as much, and something new and unexpected always pops up.  I will be interested in knowing how your numbers work out at the end. Please post an update. 

Wow JP. That is a great idea. Splitting the land and selling it! Kudos!

Fantastic result Jean! That's an awesome way to make an introduction into the states :). 

Welcome to South Florida

Hi Jean Paul, congratulations on your sucess in coming from Venezuela and basically hit the ground running in real estate.  Where exactly in Miami was this deal found? 

Originally posted by @Jean Paul Castellanos :

Hey guys, so I want to share my experience with you guys, I hope it inspires many of you who are starting out. 

I am from Venezuela and moved into the U.S only 11 months ago at the age of 21, as soon as I arrived I started learning Real Estate, I am an Engineer so numbers are my thing, so after a few months of hardcore preparation, I obtained my Real Estate License and quickly applied my knowledge and tools to Real Estate Investing.

I found this deal after several weeks of nonstop door-knocking in Miami, it was hundreds of doors knocked and rejections before I was able to find this hidden gem.

This property was in pre-foreclosure status when I found it.

Here is how the deal went down:

Purchase Price: $99,800 + Closing Cost: $3200

Rehab: $50,000 

ARV: $250,000

Description: 3/1 SFH in OK condition in a fast growing area in Miami, full interior rehab was done. several comps of similar properties in the area have sold between $230,000-$280,000 price range. The property will be listed for $250,000

Bonus: Property is 10,000 SqFt and is currently being split into two 5000 SqFt lots, giving me a 5000 SqFt vacant land which sells for $120,000 (Cash offer is on the table waiting for the county to finish the lot split.)

Cash Invested in the deal: $153,000

Brought in a Partner to put most of the cash in the deal and split profits 50/50.

Net Profits: $90,000 (Fix-&-Flip) + $115,000 (Vacant Land) = $205,000.

Consistency is everything. It is painful at first but I promise you it will pay off!

"Success isn't always about greatness. It's about consistency. Consistent hard work leads to success. Greatness will come. "

-Dwayne Johnson


I wish the best to all of you and hope this experience inspires you, I will share my experience with you guys soon, stay tuned, great things to come!

 Congrats!

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