Successful flip story!

[Leo Kwok]

I have been a fairly long time member but don't post or do too much here simply because I always have felt that it is much better to learn things "hands-on" rather than reading a book or listen to a podcast.... but in any case I wanted to share one of my little success stories in hopes of inspiring others!

A little bit about myself, I am 48 and am a full time RE investor mostly doing fix and flips and have some buy and holds in the Chicagoland area, this is my 5th year in it, have a total of 25 projects under me, have done everything from regular cosmetic to full gut rehab 3 unit MF buildings and SFH new 2nd level additions, only thing I have not been in is new construction…. Just wanted to share this recent success story that I just finished where if everything works out perfectly this can be the result! The white single level house on the top half of the picture is in Villa Park IL, I bought this on a wholesale deal on Nov 1, it is the epitome of if you buy a deal right you will never lose, and that is exactly the case in this one, minor mechanical updates and cosmetically update house with kitchen and master bath being the focal points…. Spent about a month to get permits situated and about 10 weeks construction time, when I bought we initially was thinking 380-390k sales price but when it came time to come on market I saw how there is no inventory of nicely rehab homes in there or the few other surrounding suburbs in the same price range so I decided to push the envelope and list at 425k!! Went on the market March 1, 4 days and 24 showings later I am under contract at 420k with wanting fast close by end of the month!! 

The numbers on this deal:

Purchase + lender fees 235k
Rehab 60k
Holding costs 10k
Estimated closing costs 25k
ALL IN COSTS 330k
Contract price 425k
NET PROFIT 90k

Not bad for 3 months of work splitting this kind of a profit with my investor on the deal!!

Not sure how the market has been going around the country but here in Chicagoland suburbs it’s very robust and I’m about to start a new one in Arlington Heights, and also just went under contract on a off market deal in Forest Park, hopefully getting similar results!  And yea the bottom half of that picture, just so happens to be another house on the south side of Chicago that went under contract same day at full ask also so that was indeed a good day!

I also have been real bad with being "social media active" but I promised myself this year I have to do it, so if you guys can do me a big favor and give me a follow on my IG I would greatly appreciate it!! I will be documenting the newest Forest Park off market deal that we just acquired which is essentially a full gut reno with architectural drawings required, so will be showing the process of that one from start to finish!

IG: @lechu_2018

Enjoy the pics and feel free to shoot any questions you have, I'll be glad to answer them as best I can!

[Mark Ainley]

@Leo Kwok thanks for putting this out there...love the before and after.  The wine cabinet above the fridge is great too.  Arlington Heights has a little stricter code enforcement than Forest Park so be ready for them!  Congrats and let me know any resources I can ever share with you around finishes or material!!!!!  I got a guy!  LOL

[John Warren]

@Leo Kwok nice work man! Forest Park is a really nice place to work as long as you listen to and follow the head of the building department. I can't wait to see more success stories like this!

[Leo Kwok]

Quote from @Mark Ainley:

@Leo Kwok thanks for putting this out there...love the before and after.  The wine cabinet above the fridge is great too.  Arlington Heights has a little stricter code enforcement than Forest Park so be ready for them!  Congrats and let me know any resources I can ever share with you around finishes or material!!!!!  I got a guy!  LOL

 @Mark Ainley Thanks alot! I actually met you at one of the meetups when I first started out I'm sure you won't remember anymore lol, but I appreciate the kind words and hope everything is going well with your business!  Will keep you in mind if I am in need of assistance!  Yes I know forest park is rough, but I have done a new addition with basement dig in Oak Park and they are the worst so if i can handle that I'm sure I'll be able to tackle this one

[Leo Kwok]

Quote from @John Warren:

@Leo Kwok nice work man! Forest Park is a really nice place to work as long as you listen to and follow the head of the building department. I can't wait to see more success stories like this!

 @John Warren Thank you appreciate it! Yes I have had my fair share of warnings about Forest Park but the profits potential is so big I can't pass it up!!

[Mark Ainley]

@Leo Kwok  Of course I remember us talking.  We might have to have you on Straight Up Chicago Podcast with these projects you are working on.  DM me if ever interested in talking further.  Super exciting to see the success or progress you are having.  

[Leo Kwok]

@Mark Ainley  wow awesome! that would be such an honor, but hopefully there is no video because I am not an on camera type of person!

I'll reach out and we can discuss!

[Jonathan Klemm]

Hey @Leo Kwok - Congrats on all your success brother!  This is very inspiring!  

The more you share the more you can help other people, so please don't stop.  We will definitely give you a follow on IG as well, some of your projects on there are awesome!

Your timeline and construction cost for a project like this are great!  Well done and super impressive.  I love the wine rack over the frig, great touch!

Do you ever do any projects in Chicago or mainly the suburbs?

[Leo Kwok]

Quote from @Jonathan Klemm:

Hey @Leo Kwok - Congrats on all your success brother!  This is very inspiring!  

The more you share the more you can help other people, so please don't stop.  We will definitely give you a follow on IG as well, some of your projects on there are awesome!

Your timeline and construction cost for a project like this are great!  Well done and super impressive.  I love the wine rack over the frig, great touch!

Do you ever do any projects in Chicago or mainly the suburbs?

hey @Jonathan Klemm thanks for the kind words its much appreciated!  I actually tried to reach out to you on FB about a month ago about airbnb in the city since I have heard you are the expert in that area, hopefully we can make some time to have a discussion about that in the near future!  I'm sure my message when to your spam or something so you probably never saw it lol

I have done city projects but they are just so horrible with inspections and everything else so I have shifted my focus completely to the suburbs only now and so far it has been much better, hopefully it continues that way! At this point I am only doing city projects if the spread is so crazy its worth my headaches to deal with it, which actually I do have one 2 unit full gut rehab I am about to get started on

[Jonathan Klemm]

Hey @Leo Kwok - That is totally my fault!  I need to get better with my Facebook responses.  I am by no means an expert in Chicago AirBnB, but I have been a host for a while.  Still learning like everyone else though.

We actually prefer working in the city rather than the suburbs haha - it just goes to show you that knowing your area and inspectors goes a long way.  Let's connect and discuss your 2 unit gut rehab!

[Marisa JManker]

Hey There! I’m the same way too I’m not big on social media at all but I really need to. by the way Im Marisa 48 and this is my first flip ! I’m amazed at your success! That’s a great Job In little time ! I however for my first flip isn’t going to well . I was wondering can you reach out to me for some advice the house Im  flipping Is In South Holland ..The Guidance would really be appreciated …Thank you