Investor · Grasonville, MD · Member since 2017 · 453 posts · 415 votes
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!
I am confused. you said you had $3200 in holding costs in your initial post and then said you had $8k in closing costs. what were your total soft costs (buyer/seller closing costs, closing cost credit, taxes, insurance, interest, realtor commissions, etc).
and what was your profit? and were there 4 partners each at 25% of the profit pie? did you include their interest in the profit or did they just pay their own personal cash and/or take a heloc out?
Everyone received an equity portion of the profits and no one was paid for their specialty- the lawyer was not paid for setting up the LLC, the tax partner with w2 income not paid for being our bookkeeper and tax strategy, our contractor the other 30% owner was not paid for his time on the job (this may be structured different on the next one, we may offer him incentives for completely jobs quickly) I was not paid for my time of marketing, negotiating with sellers or acquiring property.
Any money someone put up front like marketing costs, materials, cost of filing with state is being paid that out of the profits. We are taxed as an S-corp.
As far as capital I put up 30%, tax strategist put up his 30% and contractors 30%, and lawyer put up his 10% for 20% of purchase and 100% of rehab and closing costs. The bank would not offer us financing on the rehab for our first project, only 80% of purchase price.
Mike, no I do not have a background in RE. Everything I've learned has come from Biggerpockets, BP has truly been my mentor. I just became obsessed with podcasts and reading books and focusing on the right things. It can be overwhelming but just focus on your "One Thing" mine is finding great RE Deals.
Alan, my letter looks something like this:
Hi, My name is Ken. I'm looking to buy homes in your area. If you are interested or know anyone interested please give me a call anytime.
Here is what we can do to make your transition simple and stress free:
- buy as-is
- we pay all closing costs
- no realtor commissions or open houses
I have my company logo as a header and footer as well as our business address. Hope that helps.