Flipping in Dallas - thoughts and stories
I started flipping in Dallas earlier this year. To date, have completed 1, have 1 in escrow, and close on 4 purchases this week. Most are being bought in wholesale, some conventionally financed too.
Wanted to hear experiences of others and especially now, I’m finding the Dallas market to be super competitive in the sub $200k category.
That said, my flips have varied in price; buying as low as $110 in wholesale/auction, to paying as much as $500k in Frisco for something that’s about $25/ft below market.
First deal was all cash: $143k all in, sold for $184,500 in Arlington (day 1). Netted just over $20k after closing costs (by the way, what's reasonable closing costs here: I paid 8.4%). 120 days purchase to funding (FHA buyer pushed us out a month)
Deal 2: bought for $148k in Arlington again, this time on finance. Put up $60k after rehab and sold for $225k (appraisal came in at $211 and we settled at that number). We will net about $20k cash on the $60k invested and this will fund August 8.
Other 4 are underway and will all be hitting the market in mid-late August.
I’ve done this by raising capital: nothing of my own. Raised about $800k in the last 4 months.
Would love to hear from the experts:
- How are you finding and funding deals?
- How are you structuring?
- How are you mitigating tax on ordinary flip income?
- Are you using LLC or under personal name?
- How would you structure the profit split? I do a variety, but mostly: 70/30 on profit (greater amount to investor) and add a 1-2% management fee on sale price depending on return. Also working on getting my agent to offer some type of volume deal.
Looking to use income from flips to purchase and grow out personal buy and hold portfolio.
Super excited to read your responses - welcome all feedback and questions.
Thank you and stay safe out there!
Haider
Ps. A bit about me:
Live in Irvine, CA. Moved from Toronto in October 2018. Have 3 houses back in Toronto and love the real estate game. Like many of you, working a full time day job and trying to turn this side hustle into my only hustle.