Investor · Farmington, UT · Member since 2011 · 314 posts · 179 votes
I've been a real estate investor for about 12 years now and I've been involved in a lot of flips. I don't do upper end houses, mostly just starter home stuff. I know that there are people who frequently make 100k + on flip projects, but those are generally deals that sell for 1 Million plus.
I sent a direct mail piece to one of the owners of this house (absentee owner) and after months of her "vetting" me (see called all of my references, including my attorney!) I bought the house for $113,000. I spent $150,000 on the remodel and sold it for $482,000! After all commissions, closing costs, etc. I had a NET profit of $187,861. This is my highest net profit on a single flip ever.
I made a really cool 5 minute video of the project for my blog. You can check out the video here: http://youtu.be/XoIEY0IrOuQ
Hopefully you find the story more interesting than my kids did! :)
Nice short video, very cool. Only thing that would have made the story better would be if you would have presented the old owner with her old tin toy when she came back to see how you transformed the home. I like what you did to the home. Crazy it took 1yr to renovate.
@Jeff S. The BP conference was great, I keep waiting for the next one (hint hint @Joshua D. ) But seriously I made a few GREAT friends there. Ryan Webber and I really hit it off, it was like we were brothers. We had monthly phone calls and I was pretty shook up when he died. I also linked up with Aaron Mazrillo, he and I are really good buddies now as well.
@Larry Turowski Hey! Walks are good, at least you are on base with an opportunity to score! Seriously though, I've done A LOT of flips and wholesales over the last 12 years, but that was the highest net profit.
@Anthony Gayden HGTV eh? I guess that would be cool... but I would have to make up a bunch of dramatic events that didn't happen. :) I am recording another story right now about a house that I bought at trustees sale, and my basement of that house is currently leaking. Ugh, there is some real drama. Stay tuned for that one in the coming months.
@Brian Ortins I don't make a scrapbook of all flips, but I did put that one together as a gift to my buddy Matt that did the remodel with me. It just had such good before and after pictures so It made for a great story. Thanks for the comment!
@Christine Lovett That is awesome! I really appreciate it! my new "vlog" is definitely a labor of love and the pay I get is view feedback. Thanks for sharing it. :)
@Rick Baggenstoss Yes, we always planned on finishing the basement, but the upstairs space was a welcome surprise. Matt (my partner in the video) and I have been friends for a long time. I'm a better wholesaler than him, but he is definitely a more talented flipper than me. He has an eye for details and colors that I just don't have. On most projects (starter homes) it isn't as important, but I didn't want to tackle this project on my own. We actually split the deal 50/50, we both put up half of the purchase money and half of the repair money. I brought the deal and he handled the renovation with my input.
I have been involved in flipping homes since '98 and I have been blessed with two similar deals to yours. You never forget those home runs! Keep going to bat and you'll see another I am sure. Those sure help keep me in the REI game!!
@Account Closed You're right, the home runs definitely make the roller coaster ride of real estate investing worth it. I'm still chasing the 100k wholesale deal! :)
@Andy M. I love the way you captured the story. That will be a treasure. I am even more impressed by profits. That is definitely something to strive for. The house turned out beautiful! Congratulations.
@Katie Neason Thanks, I love watching it just to see my kids faces and comments. I read books to them every night and it looks pretty much just like that. Good luck out there in Texas!
Congrats on your success Andy, it is always nice to hit a home run once in a while.
Being a numbers guy, I am wondering how you managed to hold this property for one year and sell it for only $32,000 in costs to get to your posted net profit?