$50,000 Profit Group Flip Before and After Pics

$50,000 Profit Group Flip Before and After Pics

Lender · Granite Bay, CA · Member since 2014 · 456 posts · 454 votes

See pics at the end!   A lot of people have asked me to write about it and share some of the details.  I hope this helps those of you that maybe run similar large groups, or those of you who just want to get more confident with the idea of flipping. 

It all started in November 2017 when I announced at one of my monthly meetings that I wanted to teach people how to flip, but I wanted to do it inside the actual home. In other words, a real hands-on type of flip. I am not a big fan of the many "Gurus" who charge big money for low quality events that never really teach anyone how to do anything.  I believe if you want to learn to flip and learn how to do a flip on your own from beginning to end, you need to get inside the home and actually see how the work is done, how to project manage it, how to save money on rehab, pick the designs,  stick to your budget, flip to the neighborhood comps, and market the home at the end.

I chose a home in the Sacramento area, a 3/3 1650 sq ft home almost 30 years old that needed to be completely remodeled.  A lot of people ask how I find my homes. I have a lot of different ways, but this one was brought to me by a local wholesaler who attends my meetings. He had the property under contract with the seller at $200K and was asking $235K.  I walked the home, ran my comps and felt the home was worth $235K in it's current condition, so we did an assignment and I closed the deal in the name of my Corporation.

The challenge for me was project managing this flip with 1,400+ people in mind, knowing that only a few would probably actually come to the home to work and learn.  I decided to schedule specific work days, with a project in mind, and also take questions.  

Our first work day was the "Demo Day", which I scheduled 2 weeks into the purchase to give everyone time to RSVP and attend. I knew I could hold about 30 people inside the home and teach, but it would be really crowded.  I had over 100 people RSVP, so I let the first 30 people attend the event inside the home.  All 30 showed up on time at 9am on a Saturday morning!  

The Demo Day was a great day of showing people how we demo tile flooring, laminate and carpet.  How we demo bathrooms and kitchens, etc... It was also an opportunity to take questions for about an hour. I found that once inside the flip, many of the questions were much better than the questions I get at my meetings.  Not everyone wanted to actually get their hands dirty, but everyone who watched seemed to really enjoy watching the house being torn apart!  Most people told me they were surprised at how much work it is, and how long it takes to gut a home.

The next meeting was a "Flooring Installation Day".  We brought another 30 people into the home and showed how we prepare, and start the installation of Pergo flooring.  The hard work was done in advance of leveling the cement floor with a 7" diamond grinder and a lot of dust!!!!  Yes, we used a vacuum dust collection system, but it is never enough, dust gets everywhere!  We started by putting down a Pergo approved barrier on the floor, which is waterproof.  We then used a laser to align the first plank and showed everyone how to keep your lines straight and your floor solid, with good expansion gaps.  We then let people help out and try their hand at installing a few boards.  People are always surprised at how easy it is to install this type of flooring, if you have good equipment.  A really good chop saw or the equivalent is a plus.

The flooring day was a huge success. I also took the time to answer questions for over an hour before and after the flooring work.

The last day we got together as a group was the "Design Day". The home was about 90% done at this point, but I had another 30 people come in and learn about design, and how to flip to your neighborhood.  For a lot of people, this was a priceless event, as they really have a tough time with design.  Design to me is just knowing what colors to use, what materials, and how to put it all together to make it look nice for the area.  There were so many great questions that I did nothing but answer for almost 2.5 hours!  We also showed our choices for outdoor landscaping at this event and how we did all the outdoor area and made them look amazing for under $3,000!  

This was my first experience with teaching a large number of people how to flip and doing it inside the actual property. I get asked to teach people how to flip all the time.  I did this project for free and did not charge anyone. 

You may be asking, "what about all the other work on the property"  Yes, most of the work was done away from the group, simply because of time constraints and 1,400 + members is a lot of people!  It's easy to teach with a TV show, where 1,000's can watch, but bringing people inside the home is a huge challenge.  There is so much more I want to say, but I think you get the idea.  

I spent almost exactly $50K on the rehab and profited almost exactly $50K, after all expenses and closing costs, etc... It took us about 75 days to complete the flip, which would have been faster but pausing for training days slowed the progress. The home was listed and sold in 4 days!  It was by far the nicest home in the zip code for sale!

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Lender · San Antonio, TX · Member since 2018 · 109 posts · 108 votes
8y

Thanks for sharing! Great idea on the design day groups!

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  • Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
    8y

    Congrats @David Oldenburg, happy to hear the project turned out to be a huge success!  I'm sure the group learned a ton of valuable information! 

  • Lender · San Antonio, TX · Member since 2018 · 109 posts · 108 votes
    8y

    Thanks for sharing! Great idea on the design day groups!

  • Ken NyczajPro Member
    Investor · Grasonville, MD · Member since 2017 · 453 posts · 415 votes
    8y

    @David Oldenburg impressive work! Good luck on the next one!

  • Rental Property Investor · Pleasanton, CA · Member since 2018 · 46 posts · 20 votes
    8y

    What great experiential learning for your group!  Would love to find similar shadowing opportunity here in the bay area.  

  • Rental Property Investor · Chattanooga, TN · Member since 2015 · 208 posts · 94 votes
    8y

    Thanks for sharing, @David Oldenburg! Great insights and appreciate the time you took in explaining your process. 

  • Lender · Granite Bay, CA · Member since 2014 · 456 posts · 454 votes
    8y

    @Jon Crosby There were a lot of people that doubted I could do a huge group flip with 1,400 members and make it a success.  It was a lot of work and challenging at times, but the end product turned out amazing and so many people learned how to flip along the way!

  • Lender · Granite Bay, CA · Member since 2014 · 456 posts · 454 votes
    8y

    @Grayson Wester   Thank you!  Design is such a big part of flipping!  I am no expert interior designer, but I know how to make my houses look very nice and create big demand from buyers :-)

  • Lender · Granite Bay, CA · Member since 2014 · 456 posts · 454 votes
    8y

    @Ken Nyczaj  I am trying to decide if I want to do another big group flip like this one!  I am getting a lot of demand from those who missed out on this one and want me to do another.  The cool thing is that any group or meetup leader could copy what I did and make it work in their area.

  • Lender · Granite Bay, CA · Member since 2014 · 456 posts · 454 votes
    8y

    @Shannon Witters  I have heard there is a RE investing group similar to mine in the Bay Area, but I'm not sure of the name?  I do have people drive from the Bay to see me speak and come to my meetings. I actually had a guy at my last meeting who drove 8 hours from so cal to be there!  

  • Lender · Granite Bay, CA · Member since 2014 · 456 posts · 454 votes
    8y

    @Christina J.  Thanks!  I am a big fan of teaching inside the property, so I think most of my flipping training will be done this way in the future!

  • Serial Entrepreneur · Sierra Vista, AZ · Member since 2013 · 3 posts · 1 vote
    8y

    Wow, awesome write up. Beautiful home.

    Did you replace kitchen cabinets or refinish? If replaced - what did you use?

  • Lender · Granite Bay, CA · Member since 2014 · 456 posts · 454 votes
    8y

    @Daniel Carnett  Hi, I put in new cabinets.  I did real wood white shaker with brushed nickel hardware.  I have painted cabinets and stained cabinets many times in the past, but I really wanted this kitchen to look nice :-). I am doing most of my flips right now in white shaker, as they are very popular and the homes sell quickly.  

  • Specialist · Houston, TX · Member since 2015 · 55 posts · 21 votes
    8y

    What paint colors did you use? I'm working on my first flip now and I never imagined picking paint colors could be so hard

  • Lender · Granite Bay, CA · Member since 2014 · 456 posts · 454 votes
    8y

    @Faraad Mohamed  I tend to always use Kelly Moore "Wise Owl" mixed down to 50% in an Eggshell finish for the walls, and just Behr flat ceiling paint because it looks good and is cheap. If you look at the pics above, the walls were painted with the 50% Wise Owl I am mentioning here. I like this color because it looks really good with warm tones, but it also looks pretty good with the gray tones as well.  In the kitchen above, the counters are gray quart and the backsplash has gray grout, but the 50% Wise Owl looks great!  

    I do go expensive on the baseboard and trim. I use Kelly Moore Durapoxy in semi-gloss, and the color is Swiss Coffee.  I also use the Durapoxy to paint doors and cabinets if they are being painted. It is an exceptional paint, but can be a little hard to get off your clothes or floor once it dries, so do your clean up quickly!

    Here in Northern, CA, I have found getting a business account at Kelly Moore is pretty easy as a flipper, and it gives me a good discount on the price.  I hope that helps :-)

  • Real Estate Investor · Nipomo, CA · Member since 2016 · 35 posts · 8 votes
    8y

    Love it -- great outcome.  I wonder if our Chico meet-up will want to see the progress on a new flip we have in Paradise which will start in Mid October?  Cool idea thanks for sharing 

  • Rental Property Investor · Raleigh, NC · Member since 2018 · 179 posts · 192 votes
    8y

    Outstanding work @David Oldenburg !  An absolutely beautiful flip!  Bravo!  Thanks for sharing and the before and after pics.  Onward and upward.  Hope you have many more such successful deals.

  • Flipper/Rehabber · Fairfax, VA · Member since 2016 · 10 posts · 2 votes
    8y

    Great article. I'd love to hear more from you and see more of your work.

  • Phoenix, AZ · Member since 2018 · 7 posts · 2 votes
    8y

    Wow, If anyone is doing a Flip Demo session in AZ I would definitely like to participate.  I am sure the experience was more meaningful than sitting on a call or attending a seminar.  Great concept.

  • Lender · Carmichael, CA · Member since 2017 · 2 posts · 1 vote
    8y

    Hey David, this hands-on training idea is excellent! I just saw this post today, and luckily I am attending your meetup presentation tonight in Rocklin, about this flip.  Can’t wait to hear all about it! 

    I am very interested in being a part of your next training in the Sacramento area.

  • Member since 2018 · 2 posts · 2 votes
    8y

    I absolutely love that idea! Let me know if there is anything like it in Chicago!

  • Rental Property Investor · Poughkeepsie, NY · Member since 2013 · 262 posts · 96 votes
    8y

    Wow what a cool idea.  I’m a teacher by trade in New York. I started a club in my school teaching tiling and painting and basic repair on my off period. I had all types of people in my ear if one of my students got hurt how I could be liable.  Your doing an amazing thing , do you have to worry about getting sued if someone gets hurt there. 

  • Salt Lake City, UT · Member since 2018 · 20 posts · 8 votes
    8y

    @David Oldenburg Such an inspiring story!! I wish there are classes like this in my area. I’m 100% sure its worth much more than any educational courses other Gurus have. Well done and appreciate the share!

  • Investor · Los Angeles · Member since 2017 · 22 posts · 12 votes
    8y

    Providing so much value to others definitely goes a long way, glad you were able to give them a hands-on approach. The place looks great, congrats on it.  

  • Rental Property Investor · Seattle, WA · Member since 2018 · 129 posts · 163 votes
    8y
    @David Oldenburg Nice job!! Definitely creative idea. Most flippers avoid educating anyone out of fear that they might be future competition. But I’ve also found that they see how complex and hard it can be first hand and then quit after their 1st flip, even if it made them money. People just think it’s so glamorous on HGTV.
  • Investor · Kailua, HI · Member since 2016 · 72 posts · 33 votes
    8y

    @David Oldenburg Looks great.  Not sure what the numbers were but I'm sure if you're sharing that this was not only a profitable flip, but a great hands on demo for future investors to jump onboard.

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