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About Full time RE investor for 6.5 years Purchased close to 300 homes Currently Flipping close to 100 a year
AboutFull time RE investor for 6.5 years
Purchased close to 300 homes
Currently Flipping close to 100 a year
HouseFlippingHQ.com# 1 resource for House Flipping
Teach the step by step process to building a house flipping business
Blog launches on Sept 25th
Podcast launches Mid Oct.
HouseFlippingHQ.com/CVREIA
The 6 Techniques We Have Used in the
Past 2 Years to
Purchase 200 Properties!
My Real Estate Investing Journey…
May of 2007
U Can Win This Car!!!
NOT!!!
It’s a Jungle Out There!!!
•Spent about $40k first 2 years!
Overtime met right people and were able to eventually navigate our way through the RE Jungle!
How I Became A House Flipping Machine!
First 3 years focused on flipping (Mainly Wholesaling)
Avg 1-2 deals a month
October of 2010 started buying rentals
October 2010 - February 20011 (12 rentals)
October 2010 - february 2011 (12 rentals)
Creating a House Flipping
Machine!!!
Power of Systems and Leverage!!!
•2007-2010 40-50 houses total
•2011 Purchased 60 Homes
•2012 -2013 Almost 200 homes!
4 Pillars of a House Flipping Business
Buying
Financing
Rehabbing
Selling
Buying (6 methods)
Auctions (Trustee Sale Document)
Listed/Agent Relationships (Training Document)
Direct Marketing
Other InvestorsNOTE: Deal analysis is KEY!!!
Financing12% Private Money
Hard Money
Equity Partners
Rehabbing2-3 GC’s
Price List/Same Materials (PDF)
Agents
Vanessa Oversees
Sales and Closings
Agents/Vanessa-List on MLS
Sometimes wholesale
Business Plan
Don’t Overcomplicate Things!!!
Goal-What do you want to achieve?
Plan/System-How will you make that happen?
Business PlanGoal-Make 10k a month (120 a year)
Plan-Wholesale 2 Houses a Month or retail 3-6 a year
System-How will you go about doing that?
Work with an agent to get 1 a month
Send out 250 post cards a week to get 1 a month.
Pay someone $10 an hour 20 hrs a week to get 1 a month
Work with wholesaler to get 1 a month
Mindset!!!
PersistentFocusedExpect ProblemsAdapt Quickly
Details
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Home in Rancho Mirage on Estellita 3/3, 2,997 sq ft., 1981 built Purchased From a Wholesaler for $370 with $8,000 fee
(he also got a commission)-Total $378,00 He got it from a direct seller who had it listed for
$499,000
Financing
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Financing Details• Hard Money Loan($500,000)
• $370,000 loan for purchase, Holdback of $130,000 for rehab cost.
• $5000 month X 5 months ($30,000)
• 12% Interest / 2 Points ($10,000)
• Buyer Paid All Escrow & Title Fees, Taxes & Warranty ($2500)
TOTAL PAID = $42,500
“Before” Pictures
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Rehabbing Pictures
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Required Rehab & CostsItem Cost Notes
Pool $28,000
Cabinets - (Kitchen/Bathroom) $7,750
Granite - (Kitchen/Bathroom) $4,200
Tile (Flooring/Bathroom Walls) $25,000
Drywall $6,500
Paint(Inside/Outside) $6,500
HVAC $1,600
Landscaping $12,500
Electrical $4,150
Plumbing $3,600
Windows/Screens $10,000
Fixtures/Hardware $4,500
Appliances $4,000
Miscellaneous / Other $45700
Total $167,000
$167,000 in Rehab!
Before & After Pictures
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Before & After Pictures
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Before & After Pictures
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Before & After Pictures
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Before & After Pictures
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Before & After Pictures (duplicate slide as needed)
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Financial Summary
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Total Cash Investment-$584,500 Holding and closing costs $82,000 Sold for $682,500 Deal Profit: $98,500 18% ROI 43% Annualized Out of pocket expense $45,000 Actual Profit: Total Profit $56,000 ROI 124%
301% annualized!
