Just finished my first flip! $30k profit!

144 Replies

Originally posted by @Ben Omaha :

did you know anything about construction?  I'd love to flip but I don't know where to get contractors 

Hi Ben, 

I have had prior experience working on my own homes and also rental properties. Ive learned through doing it!  You can too
 

Originally posted by @Joshua Birk :
Originally posted by @Jamie McCauley:
Originally posted by @Will Barnard:

Congrats on your success, not bad at all. As a suggestion, take all your hours spent on performing the rehab tasks and calculate what your hourly rate was form your profits. It may be beneficial for you next time to hire out tasks that are “below your pay grade” so you can focus on the higher paid tasks like finding deals, raising money, building your team, adding systems for efficiencies, etc.

 Will, 

Thanks for the suggestion!  That was one of my "woes" from this last project, how long it took me.  I was planning on 2 months when it actually took about 3.5.  If I continue flipping, I will definitely work on assembling a team.  


Thanks Again!  Cheers

 I think Will is absolutely right for the long term. But if it's one of your first few flips, I think there's something very valuable about getting your own hands dirty to see what the process is like from the most basic angle. You understand how much time and energy different tasks take and then you can use that info when gauging bids/timelines from your contractors.

Sometimes "obvious" things (use large tile instead of small tile where possible and you'll save time and money) aren't all that obvious unless you've done the work.

True! 

Originally posted by @Shawn Kross :

@Jamie McCauley awesome! Congrats!! My father,brother and I just closed on our first flip today. We made $88,000 then split it 3ways. Looking for the next one.

Wow congrats! Thats a nice spread! 

@Mike S. I currently have a $4000 per month budget, up from $2000 for my first couple of months. I have spent a total of $4000 so far advertising on google adwords, which has generated 37 motivated seller leads. Out of the 37, 29 have been really good fits for me making cash offers on. I have closed 2 deals from those leads, which I have wholesaled. 

I have also gotten about 15 calls from my ads, which didn't go into those 37 leads (those are just people that I have actually had to pay for). 

I am very confident that from those first couple months of leads I will generate at least 2 more deals. 

Let me know what other questions you might have. 

Originally posted by @Nathaniel Hovsepian :

@Mike S. I currently have a $4000 per month budget, up from $2000 for my first couple of months. I have spent a total of $4000 so far advertising on google adwords, which has generated 37 motivated seller leads. Out of the 37, 29 have been really good fits for me making cash offers on. I have closed 2 deals from those leads, which I have wholesaled. 

I have also gotten about 15 calls from my ads, which didn't go into those 37 leads (those are just people that I have actually had to pay for). 

I am very confident that from those first couple months of leads I will generate at least 2 more deals. 

Let me know what other questions you might have. 

@Nathaniel Hovsepian That's amazing and inspiring! Thanks for sharing. If you wouldn't mind me picking your brain, I'd like to DM you for further details as I am in the E-commerce business so I think it would be along the same lines. Appreciate your time. Thanks!

Mike

 

@Mike S. you are welcome to DM, but I always like to keep conversations running in posts that way others can get involved, inspired and learn if they want to. 

Up to you!

Originally posted by @Nathaniel Hovsepian :

@Mike S. you are welcome to DM, but I always like to keep conversations running in posts that way others can get involved, inspired and learn if they want to. 

Up to you!

The former is a great idea. I like the concept of using online ads to wholesale deals for yourself. What percentage of your leads acquired through online ads do you wholesale off to other investors vs. closing on them yourself? 

What are some other challenges, if any, you've faced in circumventing wholesalers and doing it in house? 

 

I haven't kept any for myself yet. The homes that I have been getting have been very large projects, which I wasn't completely comfortable taking on myself at the moment. I am just trying to grow my marketing budget at this point and create a constant stream of leads coming in that I can scale. 

My biggest challenge so far has been making accurate offers. I purchased one home too high and had to take a small loss on it, and have made quite a few offers that were too low and other investors came in and offered more (no a terrible thing though).

I am fine tuning my process with answering calls and emails for my inbound leads and trying to make more offers over the phone before even seeing the place. This gets me in the door so to speak, and then I can do due diligence and adjust offer if needed. I am very upfront with sellers about this process. Will see how it works over time and continue to tweak.

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