I made $187,861 NET profit on this flip!

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I made $187,861 NET profit on this flip!

Andy M.
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! :)

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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
12y

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. 

Curt Davis - KAIZEN Realty538 Reviews
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  • George P.
    Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    12y

    i am watching the video with @Aaron Mazzrillo now. love it.

    tell your brother the sound is a little off in a few places. :)

    0Reply
  • Charmaine M.
    Queens NY, NY · Member since 2013 · 467 posts · 107 votes
    12y

    @Andy M....Thanks for sharing and congrats!!  I love the video.

    I like how you knew that you had to take on a partner, because this was a little out of your league, half of something is always better than all of nothing.

    You also mentioned you lost money on another project- that is keeping real, showing that things don't always work out the way they should.

    0Reply
  • Casey Cuppy
    Real Estate Agent · Phoenix, AZ · Member since 2014 · 81 posts · 25 votes
    12y

    Congrats!!!

    0Reply
  • Andy M.
    OP
    Investor · Farmington, UT · Member since 2011 · 314 posts · 179 votes
    12y

    @George P. I love that interview. I was thinking about posting it on BP somewhere so people could check it out. I think I will at some point. Aaron is a rockstar! :)

    @Charmaine M. You're absolutely right, plus it can be better than just taking a wholesale fee. It reduced the risk for both of us and we both profited more. I'm always a fan of win win partnerships.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Will Barnard 

      Consulting is a good gig and a natural progression for very experienced folks in any industry. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
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    0Reply
  • John HornerPro Member
    Flipper/Rehabber · Columbus, OH · Member since 2013 · 1k+ posts · 655 votes
    12y

    Love the video!  Way to go!

    0Reply
  • Rolanda Eldridge
    Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
    12y

    Awesome Deal!!!.

    0Reply
  • Phyllis E.
    Dunkirk, MD · Member since 2014 · 55 posts · 12 votes
    12y

    I loved the very clever and engaging video and your adorable kids. The video seemed professionally done, making it very enjoyable to watch. I'll bet one of these days HGTV will offer you a new reality show, "Bed-time Real Estate Stories with Andy and his Kids"! (So moms and dads AND their kiddies can enjoy watching those HGTV shows together as a family, ha, ha --LOL!) I actually posted a comment on you tube and subscribed to your channel. I want to see more of these!

    I loved the house flip, too. I can totally understand that the woman and her family were willing to sell it for a bit less in order to insure that it wasn't just torn down but renovated and revived to its former glory (probably surpassed it, too!) She looked so happy with the results. Money isn't everything.

    I wonder if some of the HGTV home renovation/fixer-upper shows are inspiring more folks like your sellers to try and salvage these older homes, and to be able to realize that they CAN be restored and improved. It is like watching "magic" happen on those shows--and I'll bet your sellers wanted to see some of that magic on their old family home more than just get top dollar. And your video/flip definitely conveyed a bit of that transformation "magic", too!

    I hope to see more videos with your sweet kiddos in there, too!

    0Reply
  • Andy M.
    OP
    Investor · Farmington, UT · Member since 2011 · 314 posts · 179 votes
    12y

    @Phyllis E. You're totally right, the sellers really wanted to see their family home "have new life" though a nice renovation. The one seller you see in the video cried (a lot), she was so grateful. Walking through it with her she would talk about all of the memories that she had in that house over the years. I can't express enough how delighted she was with the finished product. One of my favorite parts of the video is when she is taking pictures with her old school, disposable, click and wind cameras. That really sums her up.

    I appreciate you subscribing to the channel. We (my brother, the camera guy/editor) are always hard at work on videos. It is a lot harder than you think to capture the stories. Every week he is editing a new video of a project, tip, or interview, all the while we are capturing content for future videos. I am currently capturing content at 3 different renovation projects I'm doing. One was a house I bought at trustee's sale (I have audio and video of the sellers and what the experience was like for them), another one is a fire damaged house I'm renovating (literally half of the roof was gone and you could see daylight through), and another is a deal I bought from a wholesaler.

    I started the I Love Real Estate Stories project because no one really gets to see all of the interesting stories behind the flips. People just see some before and after photos but the details get missed. I'm going to keep putting out quality videos that hopefully people care enough to watch.

    I can't express enough how much it means to my brother to have "his art" appreciated. He is a total artist/musician and great documentary video guy. He loves nothing more than people appreciating a video he has done.

    Thank you again! :)

    1Reply
  • Terry HershbergerPro Member
    Investor · Nipomo, CA · Member since 2011 · 227 posts · 76 votes
    12y

    @Andy M. Congrats! Way to hit a grand slam!

    Happy Investing!

    0Reply
  • Ellen Kuzniar
    Hammond, IN · Member since 2014 · 13 posts · 0 votes
    12y

    Beautiful Work. Nice Story

    0Reply
  • Jose Urena
    Homeowner · Columbia, SC · Member since 2014 · 9 posts · 1 vote
    12y

    Loved the video and I posted a comment on it.  Great job renovating that property.  Hopefully, they have houses like that down here in Columbia, SC.

    0Reply
  • Phyllis E.
    Dunkirk, MD · Member since 2014 · 55 posts · 12 votes
    12y

    @Andy- I watch a lot of "how-to" and "educational" type you tubes videos and I can appreciate how much work, preparation and "rehearsal" you must put in to get that level of quality compared to so many other videos out there where person is fumbling about, trying to think about what they should be saying, the camera isn't capturing what it should, etc. They can be frustrating to watch all the way through.

    Your videos will, hopefully, continue to provide us with some real home-flipping "reality" shows, unlike the manufactured "made-up for tv drama" found on most HGTV shows! (Like "Oh-no, I think this house is haunted by a ghost"--as seen on "Flipping Boston." Or "oh-no, we've already started digging the foundation and the building dept. won't let us build the second story we were planning on." -as seen on "Love it or List it."  PU-LEASE spare us the nonsense!)

    Keep up the good work!

    0Reply
  • Andy M.
    OP
    Investor · Farmington, UT · Member since 2011 · 314 posts · 179 votes
    12y

    @Phyllis E. That is so funny that you mention those HGTV shows, I watch them too and I think the same thing. Yet, I still can't look away. 

    It probably doesn't come through as much, but real world flips have just as much drama, just not as extreme. Sewer line collapses, foundation leaks, people stealing materials, city permit/inspection process taking forever, etc. I'll try to keep it as real as possible. :)

    @Jose Urena Opportunity is everywhere, you just need to be prepared for it so you recognize it when it comes. Frequently it will look a lot like hard work! :) South Carolina is full of flipping opportunities, I want to see your success story!!

    0Reply
  • Account Closed
    Rental Property Investor · AZ · Member since 2013 · 213 posts · 50 votes
    12y

    Wow, that was a fabulous renovation!  I loved the video and the fact that you brought the seller into it.  You can tell how awestruck she was by the reno!  It sounds like she got just what she wanted, another family to live their lives in that house and make their own memories.  

    Your brother did a great job with the video!  And the kids were fabulous actors!!

    0Reply
  • Andy M.
    OP
    Investor · Farmington, UT · Member since 2011 · 314 posts · 179 votes
    12y

    @Account Closed Thanks! It was actually a negotiation point with the seller, I knew she wanted to see the remodel done right. Since it didn't cost me any more to give her what she wanted there it definitely worked out. I actually offer that to a lot of sellers, but most of them don't really care. 

    The kids were fabulous weren't they? They actually didn't really know they were being recorded, we read our normal bed time books then I just transitioned into the last book and it was seamless. ;)

    0Reply
  • Matthew Copeland
    Los Angeles, CA · Member since 2013 · 12 posts · 2 votes
    12y
    Congrats Andy!
    0Reply
  • Alex T.
    Investor · Newton, MA · Member since 2009 · 69 posts · 19 votes
    12y

    Congrats and great video!

    0Reply
  • Chris Zink
    Real Estate Investor · Shawnee Mission, KS · Member since 2014 · 20 posts · 11 votes
    12y

    Wow!  Nice work!

    0Reply
  • Vicki Gleitz
    bennett, CO · Member since 2014 · 225 posts · 122 votes
    12y

    Your kids are so incredibly cute!  What a wonderful daddy you are.  And a much smaller, but still HUGE congrats on your extremely profitable flip. I imagine that the former owner is so happy that she entrusted you to bring her 'baby" back to its' previous glory.

    0Reply
  • Andy M.
    OP
    Investor · Farmington, UT · Member since 2011 · 314 posts · 179 votes
    12y

    @Vicki Gleitz Thanks Vicki! I love reading to my kids every night, it is definitely one of the highlights of my days. As for the former owner, she was literally in tears. Matt and I did for her (and her family) what they couldn't do for themselves. I've worked with hundreds of private sellers over the years, and I see a reoccurring theme a lot. Whenever a property is inherited or owned by multiple members of a family, they always talk about, "fixing it up" and it always seems like a good idea until they realize:

    1. It is a lot of work! Who is hiring people? Who has the vision? Who is running to Home Depot? 

    2. Who is going to pay for it?

    3. There are inevitably members of the family who won't do anything and will reap rewards that they shouldn't have received. 

    Bottom line is as investors we definitely ad a lot of value to sellers, especially those with properties in need of a lot of repair, and a quick solution.

    Thanks for watching the video and for your comment! ;)

    0Reply
  • Kenneth HynesPro Member
    Rental Property Investor · Easton, PA · Member since 2013 · 359 posts · 92 votes
    12y

    @Andy M. Great Job and a great finished project .  Do you have to go through permitting / zoning to go from 1200 to 3700 sf ?   that was a alot of value to add t the home  

    0Reply
  • Andy M.
    OP
    Investor · Farmington, UT · Member since 2011 · 314 posts · 179 votes
    12y

    @Kenneth Hynes Good question. We had to pull permits with Salt Lake City, but we didn't need to change the zoning. The structure was already in place, and we didn't really add any square footage, just finished it. I'm not sure why the County didn't count any basement or attic square footage in their assessment, but they didn't. They didn't even show that it was there. But you are correct, the added finished square footage definitely added a lot of value to the home.

    0Reply
  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    12y
    Originally posted by @Andy M.:

    Thanks @George P. ! They were a little bored. My favorite comment is when my daughter says, "did you lose all of your money?" :)

     "No, but it felt that way when I paid my income taxes."

    0Reply
  • Josh K.
    New York City, NY · Member since 2014 · 7 posts · 1 vote
    12y

    Thats sick, Keep up the good work

    0Reply
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