Did anyone here make 100k on their first flip?
Real Estate Agent · Ft. Worth, TX · Member since 2016 · 10 posts · 5 votes
Did anyone here make 100k on their first flip?
Most Popular Reply
Real Estate Broker · Greer, SC · Member since 2013 · 548 posts · 271 votes
8y@Rhett Roden
We made at least 1k on over 100 flips. Does that count? My first one made about 15k. Us boys here in SC got a median home price about 160k. We underprivileged. Buy we have sweet tea.
38 Replies
- Investor · Biddeford, ME · Member since 2017 · 282 posts · 180 votes8y
Originally posted by @Account Closed:
Originally posted by @Rhett Roden:
Ok guys I’m working on a longer forum post to really cover this deal in-depth, but just wanted to get the conversation started a little bit.
I am really interested to see what some of yall’s numbers look like at the conclusion of your first true-blue flip from start to finish.
So did anyone else here make 100k on their first flip? If not, how close (or not so close) did you get? I’m really looking forward to hearing others experiences and sharing my own very soon!
It took me three properties, to get to my first $100k flip profit. 1st was about $30K, 2nd was like $50k or something like that, third was over $100k. It was back in the 90's. It was an expensive market which accounts for some of the expenses and profits. The key is to buy "off market" and in not having to pay 6% realtor fees when selling. Since I use "Subject To" I didn't have loan origination fees (points) either. What I learned is that Uncle Sam loves you to be successful and have sort term gains like Fix & Flip . They like it so much they send you lots of letters asking for lots of money. ;-) Fix & Flip - highest risk, highest taxed, requires most money & requires most time with the least reward. IMHO.
I only "cash flow" (not Buy & Hold, but "cash flow" yes, there is a difference) properties these days. It takes a lot less money, there is a lot more money in it and taxes are a lot lower on cash flow & the projects happen a lot faster.
Can you please explain what "subject to" means? Thanks!
- Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes8y
Originally posted by @Tyler Bushey:
Originally posted by @Account Closed:
Originally posted by @Rhett Roden:
Ok guys I’m working on a longer forum post to really cover this deal in-depth, but just wanted to get the conversation started a little bit.
I am really interested to see what some of yall’s numbers look like at the conclusion of your first true-blue flip from start to finish.
So did anyone else here make 100k on their first flip? If not, how close (or not so close) did you get? I’m really looking forward to hearing others experiences and sharing my own very soon!
It took me three properties, to get to my first $100k flip profit. 1st was about $30K, 2nd was like $50k or something like that, third was over $100k. It was back in the 90's. It was an expensive market which accounts for some of the expenses and profits. The key is to buy "off market" and in not having to pay 6% realtor fees when selling. Since I use "Subject To" I didn't have loan origination fees (points) either. What I learned is that Uncle Sam loves you to be successful and have sort term gains like Fix & Flip . They like it so much they send you lots of letters asking for lots of money. ;-) Fix & Flip - highest risk, highest taxed, requires most money & requires most time with the least reward. IMHO.
I only "cash flow" (not Buy & Hold, but "cash flow" yes, there is a difference) properties these days. It takes a lot less money, there is a lot more money in it and taxes are a lot lower on cash flow & the projects happen a lot faster.
Can you please explain what "subject to" means? Thanks!
It means I take over their financing, pay them cash for their equity and own the property. There is no bank qualifying. It should always be done through Escrow with a Title report and full disclosures.
- Investor · Biddeford, ME · Member since 2017 · 282 posts · 180 votes8y
Originally posted by @Account Closed:
Originally posted by @Tyler Bushey:
Originally posted by @Account Closed:
Originally posted by @Rhett Roden:
Ok guys I’m working on a longer forum post to really cover this deal in-depth, but just wanted to get the conversation started a little bit.
I am really interested to see what some of yall’s numbers look like at the conclusion of your first true-blue flip from start to finish.
So did anyone else here make 100k on their first flip? If not, how close (or not so close) did you get? I’m really looking forward to hearing others experiences and sharing my own very soon!
It took me three properties, to get to my first $100k flip profit. 1st was about $30K, 2nd was like $50k or something like that, third was over $100k. It was back in the 90's. It was an expensive market which accounts for some of the expenses and profits. The key is to buy "off market" and in not having to pay 6% realtor fees when selling. Since I use "Subject To" I didn't have loan origination fees (points) either. What I learned is that Uncle Sam loves you to be successful and have sort term gains like Fix & Flip . They like it so much they send you lots of letters asking for lots of money. ;-) Fix & Flip - highest risk, highest taxed, requires most money & requires most time with the least reward. IMHO.
I only "cash flow" (not Buy & Hold, but "cash flow" yes, there is a difference) properties these days. It takes a lot less money, there is a lot more money in it and taxes are a lot lower on cash flow & the projects happen a lot faster.
Can you please explain what "subject to" means? Thanks!
It means I take over their financing, pay them cash for their equity and own the property. There is no bank qualifying. It should always be done through Escrow with a Title report and full disclosures.
That's what I was expecting, thanks! Must be tough to find these deals?
- Real Estate Agent · Sequim, WA · Member since 2017 · 64 posts · 39 votes8y
First true flip was $82k net bought for $100k fixed for 40 ish a sold for $238k. The next one was $91k, took 6 months after work. And my best was a live in flip deal where we fixed it up and lived in it for 2 years then sold. $117k.( Lots of appreciation tho maybe $30k worth).
Seems like if your going to invest in fix and flips you might as well build spec homes tho. Expesially if they are big projects. The last spec we completed netted $181k. All though we do all the work, so it's more like a full time job then an actual investment
- Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes8y
Originally posted by @Tyler Bushey:
Originally posted by @Account Closed:
Originally posted by @Tyler Bushey:
Originally posted by @Account Closed:
Originally posted by @Rhett Roden:
Ok guys I’m working on a longer forum post to really cover this deal in-depth, but just wanted to get the conversation started a little bit.
I am really interested to see what some of yall’s numbers look like at the conclusion of your first true-blue flip from start to finish.
So did anyone else here make 100k on their first flip? If not, how close (or not so close) did you get? I’m really looking forward to hearing others experiences and sharing my own very soon!
It took me three properties, to get to my first $100k flip profit. 1st was about $30K, 2nd was like $50k or something like that, third was over $100k. It was back in the 90's. It was an expensive market which accounts for some of the expenses and profits. The key is to buy "off market" and in not having to pay 6% realtor fees when selling. Since I use "Subject To" I didn't have loan origination fees (points) either. What I learned is that Uncle Sam loves you to be successful and have sort term gains like Fix & Flip . They like it so much they send you lots of letters asking for lots of money. ;-) Fix & Flip - highest risk, highest taxed, requires most money & requires most time with the least reward. IMHO.
I only "cash flow" (not Buy & Hold, but "cash flow" yes, there is a difference) properties these days. It takes a lot less money, there is a lot more money in it and taxes are a lot lower on cash flow & the projects happen a lot faster.
Can you please explain what "subject to" means? Thanks!
It means I take over their financing, pay them cash for their equity and own the property. There is no bank qualifying. It should always be done through Escrow with a Title report and full disclosures.
That's what I was expecting, thanks! Must be tough to find these deals?
Your comment: "Must be tough to find these deals?"
Not hard really. There will always be people who need to sell quickly for one reason or another. I provide these properties as "turn key" for investors so I have been ramped up for a long time & I have a steady stream coming along. Keep in mind that I cover both Arizona and Texas. Both are huge markets. AZ is mostly Phoenix, Glendale, Mesa, Gilbert, and TX is mostly San Antonio, Dallas/Ft Worth, Cedar Park, etc but not so much Austin. I don't do California simply because prices make it difficult to cash flow. Most of the turnkeys are in the $250k ARV with a buy in of $50k, no bank needed. I don't go for the C- & D neighborhoods, I prefer to stick to the B & C neighborhoods. Some deals are "homeruns", some are "hohums" and most are just solid everyday type investments. Anyone just starting out might find it a bit challenging to do Subject To on their own, with all of the aspects you need to know, but you learn those over time and then it's "sell them like hotcakes". Someone wanted a spreadsheet to understand this better so I put one together here:
- Atlanta, GA · Member since 2018 · 1 post · 1 vote8y@Rhett Roden 47k first deal / wholesaled it
- Member since 2017 · 62 posts · 60 votes8yInterestingly enough, in Fremont, my partner and I cleared 230k, 210k and 125k on our first three in 2016-2017. I think the profit margin percentages were 27%, 21%, and 8%. After these flips were done, took a year off. Now we have three more properties (W. Oakland, Orinda, and Castro Valley) that should be ready in the next 2-3 months but none are in Fremont area. Will be interesting to see what happens since we’ve never gone outside Fremont. I’m a bit nervous but fingers are crossed. If anyone would like to see pictures I’d be more than happy to show anyone! We put A LOT of effort into our designs and we’re passionate about rehabbing and creating HOMES not just houses for margins!
- Fort Collins, CO · Member since 2018 · 45 posts · 21 votes8y@Rhett Roden, my wife and I made nearly 80k on our first flip. It probably helped that it was a live in flip and I’m a GC, woodworker and all around handyman, so we did all our own work. That was also mostly cosmetic repairs (no new HVAC, water heaters, etc.), cabinets flooring, paint, yard work. It’s a bit harder to find those kinds of deals in Ft. Collins now, but we’re keeping our eyes peeled.
- Fort Collins, CO · Member since 2018 · 45 posts · 21 votes8y@Tom Spaeth, that is awesome!! You’re right about wanting one of those every year, especially up here in northern Colorado. We’re further north in Ft. Collins, and deals like that are increasingly rare. Good luck on the next one!
- Rental Property Investor · Florida & Shanghai · Member since 2017 · 192 posts · 68 votes8y
@Logan Brown curious to hear more about your CO flip. Was it a SFH? Did you find off-market with agent or through an MLS app? Mind sharing some before/after pics? I'm guessing an 80k return means the purchase price was over 200k...
Nice job btw!
- Fort Collins, CO · Member since 2018 · 45 posts · 21 votes8y
@Troy Williams, it was a SFH that we snuck into right before the market really started to heat up. We got in just barely over 200k, lived there for two years while we worked on it, then sold it. It was on MLS as well and honestly, I think a big portion of our numbers was due to the acceleration of the market and having got in the house when we did. I think it would be a bit more difficult to do that again, unless we find something in the 400k or above range. I'll track down some photos for you and send them over in a PM. Cheers!
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes8y
I lost about $10k on my first flip. The most Ive made was about $45k.
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