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 · 426 posts · 672 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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  • Real Estate Agent · St Petersburg Tampa, FL · Member since 2017 · 114 posts · 34 votes
    9y

    Congratulations to you for going all out and coming out on top.  The normal investor wouldn't take that chance.... so hats of to you....

  • Vendor · New Berlin, WI · Member since 2016 · 16 posts · 3 votes
    9y

    This story just motivated me to stop dragging my feet. I'm going to make this happen like Daniel did! Thank you for sharing your story. Hope for 100 more story like this from you.

  • Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
    9y

    Absolutely beautiful! Huge Congrats to you sir and keep it up!

  • Nashville, TN · Member since 2014 · 1 post · 0 votes
    9y

    Way to Go Daniel, You Nailed IT.

  • Cincinnati, OH · Member since 2015 · 10 posts · 2 votes
    9y

    Fabulous job! Congratulations, Daniel!!

  • Investor · Atascadero, CA · Member since 2015 · 238 posts · 90 votes
    9y

    Congratulations @Dan Beaulieu. It looks beautiful. You should be very proud of yourself. A profit of 35K in a few months is great and a lot of people would be happy with that. If you continue to do flips you should talk to a tax consultant to get some strategies on saving on your taxes. 

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 426 posts · 672 votes
    9y

    @Ronda R. thank you so much and thanks for the recommendation! 

  • Investor · Atascadero, CA · Member since 2015 · 238 posts · 90 votes
    9y

    I put a link to a youtube video by Mark Kohler, but it looks like they strip urls out. I didn't know that wasn't allowed. Look him up though. He has some great information and he is entertaining. It will at least get you thinking about ways to structure your business.

  • Rental Property Investor · Olympia, WA · Member since 2012 · 544 posts · 311 votes
    9y

    Well Done!  Thanks for sharing your success.

  • Real Estate Investor · Cape Coral, FL · Member since 2017 · 8 posts · 3 votes
    9y

    Congrats Daniel - your story is so inspiring! I'm in the middle of my first flip....maybe BRRR instead. I love your "can do" attitude. I'm kind of the same with my property - nothing can get me down about it. I'm learning as I go. And the whole process has been a joy. I also use Houzz :) I am really enjoying my second career in real estate investing. Thanks for sharing your story.

  • Investor · Asbury, NJ · Member since 2015 · 226 posts · 205 votes
    9y
    Originally posted by @Chris Aybar:

    About the tax man : let's hope that we make so much money this year that we have a HUGE tax bill in 2018. The more we pay, the more we made.... Right ?

    Wrong! The more you KEEP, the more you made!! Paying taxes in a higher bracket should not be anyone's motivation for making more money--keeping more of it by socking it away into various vehicles and lowering your taxable income is the trick! Tax planning is an important part of exit strategy...unless you really like sharing with Uncle Sam :)

    Daniel--amazing job, the house is gorgeous, you created something really special, can't wait to see your next one!!

  • Syracuse, UT · Member since 2016 · 1 post · 0 votes
    9y

    congratulations!!  This is amazing!  I love how it turned out.  I am in Utah and need to find a hard money loan.  Who did you use?  I'm researching like crazy but would love some recommendations from people with some experience.  Thx 

  • Investor · Hillsboro, OR · Member since 2014 · 62 posts · 45 votes
    9y
    Originally posted by @Dan Beaulieu:

    -Background check every single contractor. I was the victim of a scam where this local welder goes around saying he is going to build handrails for people, takes a deposit, and never delivers. I'm in the process of suing. His price was great, he seemed totally legit. ALWAYS ASK FOR REFERENCES AND DUE RESEARCH ON CONTRACTORS! 

     Great Job! Really impressive! :)

    I had a similar experience with a contractor in Oregon but i haven really done anything about it. 

    Are you talking to an attorney currently?

  • Investor · Dallas, TX · Member since 2017 · 16 posts · 4 votes
    9y

    congrats mate looks fantastic, great design concept that looks fresh and modern. I also like your advice on overthinking! I do it daily and need to stop! Going to read that book stat! keep it up @Dan Beaulieu looking forward to your next success story, and Hopefully I will have one also!.

  • Dallas, TX · Member since 2017 · 77 posts · 28 votes
    9y
    Awesome job ! The inside looks amazing :) very inspiring ! Thanks for posting !
  • Bedminster, NJ · Member since 2017 · 2 posts · 0 votes
    9y

    awesome story!!

  • Lender · All, Nationwide · Member since 2015 · 144 posts · 46 votes
    9y

    Impressive!  Congrats!

  • Investor · Plymouth, MI · Member since 2016 · 48 posts · 70 votes
    9y

    Phew... what a cool looking home.  Congrats!  I suppose I wanted to reach out to others and ask who else has had success in the above $400K price points.  3 times I have went above $300K and each time I've gotten killed due to the carry on hard money.  Open to suggestions.

  • Residential Real Estate Broker · Palos Hills, IL · Member since 2015 · 9 posts · 0 votes
    9y

    Congratulations!

  • Real Estate Agent · San Jose, CA · Member since 2015 · 84 posts · 50 votes
    9y

    Good job Daniel making a decent profit for your first endeavor.  I'm sure you learned some valuable lessons, so make sure you reflect on what those lessons were and apply them to your next project. Concerning contractors, always start with referrals from trusted friends, especially those friends in the construction business. It's never going to be perfect but good subs will get the job done and if you treat them fairly they will work with you. I try and pay and procure   when possible  all materials and have them bid just the labor. That way they cannot justify asking for 50% up front. Plus  I know the quality of the parts and materials being installed. If a sub starts off bad they will end up bad. Do not put up with it and be quick to fire even if you may loose a few $$$. If you borrowing hard money, the costs are steep and your primary goal is to get your project completed and sold quickly. If you want to save some money on real estate fees, get your RE license. I saved $45,700 in commissions on the purchase and sale of my last flip. That made the deal go from good to great. Lastly, find a good realtor ( until you get your license :) ) who can find you some off market opportunities so your not bidding against retail buyers. 

  • Rod HanksBusiness Member
    Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
    9y

    Any deal you make money is a good deal, especially if this is your first one. Congratulations! As you get more deals under your belt your net profit will get much bigger. Not only did you make money on this deal, you have obtained a valuable education. Now on to the next one!

    Rod Hanks Insurance4.9158 Reviews
  • IN · Member since 2017 · 45 posts · 11 votes
    9y

    Nice job @Dan Beaulieu!

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 426 posts · 672 votes
    9y
    Originally posted by @Scott Raley:

    Good job Daniel making a decent profit for your first endeavor.  I'm sure you learned some valuable lessons, so make sure you reflect on what those lessons were and apply them to your next project. Concerning contractors, always start with referrals from trusted friends, especially those friends in the construction business. It's never going to be perfect but good subs will get the job done and if you treat them fairly they will work with you. I try and pay and procure   when possible  all materials and have them bid just the labor. That way they cannot justify asking for 50% up front. Plus  I know the quality of the parts and materials being installed. If a sub starts off bad they will end up bad. Do not put up with it and be quick to fire even if you may loose a few $$$. If you borrowing hard money, the costs are steep and your primary goal is to get your project completed and sold quickly. If you want to save some money on real estate fees, get your RE license. I saved $45,700 in commissions on the purchase and sale of my last flip. That made the deal go from good to great. Lastly, find a good realtor ( until you get your license :) ) who can find you some off market opportunities so your not bidding against retail buyers. 

     All great points! Thank you so much for taking the time to write this. I will definitely work on my license next.

  • Flipper/Rehabber · Littleton, CO · Member since 2014 · 75 posts · 75 votes
    9y

    Under budget? And on such a large project?  And on your first flip?  Great job. I have never been under budget in all my years.  I didn't know there was such a thing as being under budget.  Dont worry about the 10% rule on this one.  You just made 35k on your first flip. Congrats!

  • Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
    9y

    Thanks to this awesome post @Sam Wilson and I got meet up with @Dan Beaulieu as he passed through Memphis looking for more investments here and Nashville.    The BP world absolutely rocks!  

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