Investor · Heber Springs, AR · Member since 2019 · 88 posts · 38 votes
I sold a wholesale deal to one of my investors let’s call her Ida (haha because that’s her name) a deal in North Little Rock off of JFK a few months back. I always do a follow up call to see how it went and what worked for them and what didn’t. It’s also a great way to continue to learn.
I was pleased to find out that it went great overall. She said that she fired her first GC because of delays, but after that it went smooth and she got a offer at full price 7 days after listing.
What’s funny is several other investors looked before her and thought the price was too high and that it wasn’t a deal. It was a win for all parties involved and I am pumped she did so well.
It just goes to show you how a positive mindset and the willingness to take some risk can make you a lot of money in this business.
Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
5y
Nice work, @Jeff Campbell! I'm glad she earned well from it and I'm glad you did, too!
As long as the numbers are real -- meaning the ARV is based on actually comparable & recent sales, the SOW is sufficient, and the acquisition price is sufficient to produce the returns, it's a deal!
Other-party-profit-fixation is a reality that seems to plague every newer investor (myself included)!
Nice work, @Jeff Campbell! I'm glad she earned well from it and I'm glad you did, too!
As long as the numbers are real -- meaning the ARV is based on actually comparable & recent sales, the SOW is sufficient, and the acquisition price is sufficient to produce the returns, it's a deal!
Other-party-profit-fixation is a reality that seems to plague every newer investor (myself included
it seems like she already sold it and made $42k
Of course with a flip you’ve got your 14% SS income tax as well as stated and federal tax.
Depending upon where she lives and her other income etc that 42k could end up netting less than 20k after taxes
Always thought I was missing out by not flipping houses Until I saw all the tax penalties for me personally
Interior Decorator · Charlotte NC · Member since 2020 · 29 posts · 8 votes
5y
@Jeff Campbell
Wow that’s amazing to hear Jeff. I’m very new to real estate and doing what I can to learn as much as possible. Can’t wait to find my first investment property.
Of course with a flip you’ve got your 14% SS income tax as well as stated and federal tax.
Depending upon where she lives and her other income etc that 42k could end up netting less than 20k after taxes
Always thought I was missing out by not flipping houses Until I saw all the tax penalties for me personally
@Michael Plante
I agree with you 100%. i've yet to do a flip, but whenever I see the deals posted, I wonder how much the investor is making. Most deals are like this. After 6% real estate commission, taxes etc the margin is very thin and seems unless you have volume like 10-15 deals going, there is not much to make
Investor · Heber Springs, AR · Member since 2019 · 88 posts · 38 votes
5y
@Avi Garg they bought the house fir about $70,000 and put $40,000 in repairs. They had about $110,000 all in and made a little over $40,000 worth of profit.