First Flip Completed Successfully! W/ Pics and Numbers
My team and I sold our first flip today!
Started diving head first into real estate in the beginning of 2018 and haven't slowed down since. We found this deal from a DM Campaign. After a few campaigns with no results, one in May finally stuck. Biggerpockets has been an incredible source of information and this wouldn't have happened without the community.
Front view: (Packed the Prius full)
Rear: (Bay Grasses turned out great)
Kitchen:
Master Bath:
Roof:
Here's about 3300 letters that I proudly lick!
Numbers:
Purchase- $108,000
Rehab- $70,000
Holding- $3,200
Sold Price- $288,000
Profit about 27% off of sold price.
Thank you to all who helped me throughout the Journey, greatly appreciated. Now we are looking to put our 2nd and 3rd property under contract this month. Possibly even a fourth if I have any funds left! If you're in the Annapolis area, reach out anytime- I'm definitely looking to get some sort of master mind group together to bounce ideas off of!
@Scott W. Holding costs were $3200, held for 90 days and approximately $1060 a month. I separate out holding costs and closing costs.
Holding costs included interest on mortgage, taxes, insurance, electric bill, sewer, water, HOA, etc
Closing costs, title company fees, government fees, bank origination fees, etc.
Here are the numbers:
Purchase $108,000
Closing $8,000
Rehab $70,000
Holding $3,000
Selling Costs $6,000
RE Agent Fees $17,280
Sale Price $288,000
Profit $75,720
I'm a 30% owner, there is another 30% and another 30%. A lawyer is a 10% owner. A lot of people for the flip, but hey the numbers worked. We split the profit as a percentage of ownership- we are an LLC being taxed as an S-Corp so we are receiving a payroll plus distributions. That's how our CPA set us up, maybe it works better that way in Maryland
I put up cash and the other 30% partner put up his cash plus cash for our GC who is a 30% owner and the lawyer put up 10%.
Hope this answers your question.
Thank you that is very helpful!
@Jeff C. Thank you, it was definitely a good first purchase. We are expanding our marketing to do more deals like this. We are starting to hire people locally to do the envelope work for us and with try to reach 5,000 mailers every other month.
@Lenny Grimes Thank you @Gay Lloyd
@Steve Judkins @Rashaad Harper Thank you
@David Joynes Specific database- tax delinquent, eviction records, high equity, D4D's. A few ways we are compiling our lists.
Hi Ken, forgive me if you've already answered this question, but how did you fund the deal.....oh and how did you meet your partner and structure the equity partnership?
I just noticed you answered part of my question in your reply to Scott W
@Addison Guyse to fund the deal we got bank financing, 12 month interest only at 6.25%. 20% down on the purchase price of the house and we paid for the rehab and closing costs out of pocket. I was on the hook for 30% of all costs since that was my equity stake.
Congrats Ken! Love to see there are still new investors getting into the flipping game. Hope to join you soon!
Great job!!
@Scott Moulton Thanks Scott! Best of luck to you. Just focus on finding a great deal and the rest will fall into place.
Motivating! Also in the Annapolis area!
@Thomas D. There is a good meetup in Anne Arundel County, you can find it if you google Real Estate Anne Arundel County Meetups.
@Ken Nyczaj will look into that appreciate it!