35K Profit on my first flip! Before and After pics!

35K Profit on my first flip! Before and After pics!

Dan BeaulieuPro Member
Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes

It is possible after all! After months and months of learning, I decided to dive in to the world of flipping. After a month of searching and offering on properties, I found the winner. I bought it off of the MLS (10 other offers on the property day 1 and I got it.) Ballsy to pay more than everybody else? Probably. I'd like to think that it was the personal letter / picture of my cute dog that got me the deal...But it was an awesome deal even at the price I paid. (363K) I know, I know, that's very expensive in most markets. When I do new things in life, I always go all in.

This property needed a full renovation which I estimated to be 110K, and the after repair value was estimated at 520-550K depending on the finishes. The house needed all new HVAC, decks, siding, railings, flooring. I still went for it!

I shopped for a good HML for 2 weeks and finally found one with relatively good terms that was willing to lend to a first time flipper. I knew nothing about home construction, but decided it would be best to learn as I go. After 3 months of hard manual labor, financial stress, managing subs, the rehab was complete! I had 3K left to my name, 2 maxed out credit cards, 4K a month in holding costs. Like I said before... all in.

The property had multiple offers on the first day and closed 2 weeks later for 536K. I came in under budget, too! :) 

Salt Lake City is a tough market and really hard to find good deals, but if I can buy one on the MLS, use hard money, AND pay realtor fees aaaaand still make money? Anybody can do it.

Now I'm completely addicted.

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Real Estate Investor · Dallas, TX · Member since 2009 · 183 posts · 153 votes
9y

I'm impressed, good job.  Don't worry about some of the mistakes you made, learn from them, don't make them again.

I never ever pay anyone up front, unless they are a huge legit company, and usually that means I put it on the credit card, so I have extra security.  Random joe blow company who wants 50% up front?  Nah.  

My philosophy is, I am building a house, I can't go anywhere, you can place a lien, and you can easily track me down.  You?  You are a random person and I am not going to spend one millisecond tracking you down if you screw me.  So either you do the work up front and then get paid or cya, plenty of others out there who don't need money up front.  

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  • Investor · Shakopee, MN · Member since 2017 · 102 posts · 60 votes
    9y
    This house is absolutely beautiful. You transformed it wonderfully and I am really grateful for you sharing this success story! Not to mention all the great comments and feedback from the BP community. This whole thread is fabulous. Thanks for sharing such an inspiring venture!
  • Ozzy SirimsiBusiness Member
    Real Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votes
    9y
    congrats, looks very good
  • Tuckahoe, NY · Member since 2016 · 45 posts · 10 votes
    9y

    That is great. Love the work done on it. Keep going...

  • Knoxville, TN · Member since 2016 · 12 posts · 3 votes
    9y

    Renovation looks great. Congrats on your first flip.

  • Flipper/Rehabber · Sachse, TX · Member since 2016 · 3 posts · 1 vote
    9y
    Congrats!!! Looks absolutely gorgeous. Well done for getting out there and just doing it! Takes a lot of courage and grit. Very happy for you!
  • Oyster Bay, NY · Member since 2011 · 5 posts · 1 vote
    9y

    hey congrats! Thats great. Can you share some info on landing a hard money lender, i am trying to find one. Thank you

  • Dacula, GA · Member since 2017 · 3 posts · 0 votes
    9y

    Wow! Congratulations! Beautiful result. 

    Reading through your experience, the outcome and the lessons you learned is super inspiring.  Thanks for sharing.

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
    9y

    @Antwan J Arthur I don't believe I'm qualified to give advice, but since you asked, I'd say make sure you are well capitalized and have read every book in sight, then just do it! 

    @Vinnie OBrien have you tried out the bigger pockets market place? 

    @Mike Newby @Michele Sidney @Cary Beadle @Raquel D. @Ozzy Sirimsi 

    Thank you so Much for the kind words! The support Here is amazing! 

  • Rental Property Investor · Pasadena, CA · Member since 2016 · 164 posts · 149 votes
    9y

    Maybe it was mentioned and i missed it but where are the agent commissions, is the sales price net of agent commissions? Certainly they are not part of the $2k closing costs.

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
    9y

    @Michael Lucero 

    Hence why my profit is only 35k. Agent fees and HML costs are massive. If i had a license and could pay cash for a deal like this.... if only!

  • Real Estate Investor · Metairie, LA · Member since 2012 · 10 posts · 0 votes
    9y
    Wow that's amazing! You did a great job in 3 months with no experience.
  • Saint Thomas, Ontario · Member since 2016 · 19 posts · 6 votes
    9y
    Great job! I give you so much credit for taking on such a large project for your first flip!
  • Developer · LA, Nashville TN · Member since 2015 · 295 posts · 75 votes
    9y

    @Dan Beaulieu Great work! Very nice job all around. Congrats. Curious as to how much time it took to manage your subs, was this part time or full time? 

    Did you get one GC to do the whole thing? How did you manage your contractors with budget/contracts?

  • Investor · Greener Pastures, CA · Member since 2017 · 31 posts · 9 votes
    9y

    Were you working full time while you did this or did this become your full time job?

  • Melbourne, Victoria · Member since 2016 · 6 posts · 2 votes
    9y
    Wow amazing work! What an inspiration 👍🏾
  • Residential Real Estate Broker · Schererville, IN · Member since 2014 · 5 posts · 1 vote
    9y

    Great job Daniel! And congratulations on getting that first one done!  It looks great too.  It's all downhill now!

  • Grand Rapids, MI · Member since 2015 · 8 posts · 2 votes
    9y

    Epic work my friend! I see great things in store for you going forward :) I can't wait to see your next project!

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
    9y
    Originally posted by @Leland S.:

    @Dan Beaulieu Great work! Very nice job all around. Congrats. Curious as to how much time it took to manage your subs, was this part time or full time? 

    Did you get one GC to do the whole thing? How did you manage your contractors with budget/contracts?

    Thank you so much. When the property was originally in escrow, I spent all day every day calling around getting estimates for every single thing. This helped me plan out a budget and made my numbers more concrete so that I didn't back out. I knew nothing about construction, but acted as the GC managing subs 7 days a week 14 hours per day until it was done. At first I did all of the demo (screwed up tons of electrical), most of the painting, and all the odds and ends stuff like hanging doors and changing fixtures.  By the end I was doing more advanced things and became quite handy in this process. 

    To manage subs, I got 3 bids for every single project and went with the lowest. That's how I quickly built a team that was affordable, but not exactly reliable so I had to be there every day. 

  • Breinigsville, PA · Member since 2017 · 16 posts · 5 votes
    9y
    @Daniel Beaulieu congratulations on your first deal. I can't wait to do mine. Try not to look at your mistakes in a negative way. instead look at them as life lessons. I wish that you continue to have even more success in your future deals.
  • Investor · Moseley, VA · Member since 2015 · 145 posts · 60 votes
    9y
    Beautiful work.. congratulations
  • Tempe, AZ · Member since 2017 · 27 posts · 8 votes
    9y
    Daniel Beaulieu What a great story! Thanks for the tips on your mistakes definitely going to keep that in mind. Crazy how people RIP others off when they would have more business and make more money if they just focused on working hard and doing great and of course minding their business on the side. Great to hear what you did the house is absolutely stunning!!
  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
    9y
    Kimberly Garrido Thank you and well said!
  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    9y
    Originally posted by @Dan Beaulieu:

    It is possible after all! After months and months of learning, I decided to dive in to the world of flipping. After a month of searching and offering on properties, I found the winner. I bought it off of the MLS (10 other offers on the property day 1 and I got it.) Ballsy to pay more than everybody else? Probably. I'd like to think that it was the personal letter / picture of my cute dog that got me the deal...But it was an awesome deal even at the price I paid. (363K) I know, I know, that's very expensive in most markets. When I do new things in life, I always go all in.

    This property needed a full renovation which I estimated to be 110K, and the after repair value was estimated at 520-550K depending on the finishes. The house needed all new HVAC, decks, siding, railings, flooring. I still went for it!

    I shopped for a good HML for 2 weeks and finally found one with relatively good terms that was willing to lend to a first time flipper. I knew nothing about home construction, but decided it would be best to learn as I go. After 3 months of hard manual labor, financial stress, managing subs, the rehab was complete! I had 3K left to my name, 2 maxed out credit cards, 4K a month in holding costs. Like I said before... all in.

    The property had multiple offers on the first day and closed 2 weeks later for 536K. I came in under budget, too! :) 

    Salt Lake City is a tough market and really hard to find good deals, but if I can buy one on the MLS, use hard money, AND pay realtor fees aaaaand still make money? Anybody can do it.

    Now I'm completely addicted.

     Stunning house. Well done!

  • Holliswood, NY · Member since 2017 · 49 posts · 10 votes
    9y
    Daniel Beaulieu Congrats I love the color you used for outside 👌very elegant
  • Hattiesburg , MS · Member since 2017 · 1 post · 0 votes
    9y

    If you don't mind sharing, which HML did you end up going with?

    SUPER GREAT JOB ON YOUR  FIRST FLIP!!!!

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