How much I made on my first flip house

welcome so I was asked axed asked by you guys for me to show you kind of a breakdown of my first flip what were the numbers what was the profit that I made I have it literally all broken down into a little spreadsheet for you to see just how much I made on my first flip house stay tuned [Music] that looks crazy I like it so this is the here's the backstory on this so I was approached by a wholesaler on this property berrywood Avenue is in Arlington Arlington is kind of an up-and-coming area in Jacksonville and you know there's a lot of new homes it's a nice medium median kind of market to buy and flip a home that is in need of a rehab so I was approached by a wholesaler who brought this property to me this is pretty much what it looked like when I first bought it I mean as you can see just pretty rough I mean look at the flooring in that bathroom look at this place I mean old electric all just disgusting carpet look at this kitchen I mean just you know old and pretty much in need of a full gut right so I walked through with my crew and we were like kind of put together a real rough construction budget like yeah maybe almost put like 40 maybe 45 grand into this house you know we'll open up this kitchen will rip out all the flooring we'll redo you know the bathrooms and the kitchen of course in this back room let me show you this back room this back room here they turn this garage into just this is kind of like a downside I guess I mean the buyers bought it so they liked it but this is what it looked like before obviously people do like garages but this was kind of like a den so we ripped out all the paneling we've demoed the flooring we even see this area right here where these boxes are we framed a wall right here I mean I saw that when I first walked through this is just what needs to happen we framed a wall right here we opened this we left the door but we opened this whole room that's behind that door into this so this laundry room so we've completely renovated this is of course what it looked like before but completely renovated the laundry room so so you can see single family home in need of a lot of work can't really remember what he was asking actually let's look let's go back to the original email alright so if this is the actual email that I got we were talking about another property and he was kind of telling where his bottom line was this guy Shawn really great guy he says you're still interested to buy because we kind of were going back and forth got another concrete block it's a 3-2 in the Fort Caroline area one of the contact you first if you're still interested it's a 3-2 1653 square feet he's saying the ARV 190 plus okay so I'll let you know soon what I sold it for and he said he's asking 128 thousand so you know and then he sends me all these photos and so those are the photos that it showed you I'm like alright let's go take a look so we walked through the property with dinner due diligence everything blah blah blah we went back and forth on pricing a couple of different times I'm like I'm not paying any more than 120 for this place I'm like I'll give you a 100 a Kenton reward I first offered and talked I talked to my real estate buddy and he was like man he should not pay like any more than like 105 or something under 10 max for this place it's an Arlington I'm like you know I just really want to get into this deal I want to get into flipping homes so as you can see I have this box of anticipation here this is so we anticipate and I'm just showing all the numbers right away I bought the property at 117 thousand five hundred and this was just a bottom dollar of what this guy was gonna take him and I really really tried I'm like pushed and push him like all right you know what I don't need to do any siding cuz it's all Coquina the roof I don't need to touch I felt like I could get the job done for maybe just kind of ballpark in like forty forty five thousand dollars of a renovation so closing costs to buy now these are just gonna be some really close let's round numbers I mean when I bought it was similar it was close to this because I thought all cash on this one because I had a couple lenders here's my first deal so I had a couple lenders they were like hey like kind of like private money like friends I'm like yo do you wanna like Len with on the with for me on this house and they're like well love to but like sort on cash right now this that so long story short I was gonna win to hear back from this one guy who was they gonna do it I remember what exactly happened but I want to just put in all my own cash down so I pretty much just this deal don't ever do this and I don't recommend it putting all of your own cash into one deal I would definitely recommend using OPM other people's money the rehab so how much did I wind up spending on rehab well look plumbing I spent 4 grand on plumbing HVAC 2,900 bucks we didn't touch the ductwork but we did the handler and the condenser all new unit and of course a new thermostat and we cleaned the ductwork and we relocated I don't think we relocated grilles but we just replaced the grills and made it all beautiful so the electrician we had a couple different electrician situations here we had one there and these are actually costs that I pulled from Builder trying I just kind of I just dump these into a spreadsheet so that is about you know 2250 probably about that I think that's all the things with Steve Steve's a great guy 2 grand 2500 bucks on electrical he did buy some fixtures but that does not include like you see like these cane lights here I put those over in Barry wood you're gonna see some final photos of bearing with like one of those all staged and everything but I bought those on Amazon which just search for the Julis in LED lights they're great that it's kind of these little pancake lights and just mousetrap and they slip right into the hole that you cut in the drywall after its painted super gray paint we spent a considerable amount you can see you know we spent 775 here this one charged with a couple of charges and I'm sure there's some home depot runs that maybe had some paint supplies and just ran the miscellaneous stuff cabinets I got all new cabinets you can see DL cabinetry there's like a deposits for 1700 Plus that is about 33 64 by the way I hold command and then I get the other cell and that's how you can do that and you can select then you get a look at the sum down here 33 64 on all new kitchen cabinets my Master's building products that's for all the flooring so I did LBP flooring for 2462 that is not include the carpet in the bedrooms by the way countertops I think I spent about eighteen hundred dollars on all the granite countertops you know I did a fence we did this and that and then it came down to you can see these Duvall master these are just me pain a subcontractor you guys know David every week for kind of his weekly guys that were there working this is again a direct import from builder trend into this spreadsheet so these are the purchase order numbers and here at the end it kind of came down to when I had a contract on the house for the seller for the for the buyers to buy it from me the seller they kept asking for all these other things to be completed so they could purchase the property for us me I'm the nicest guy in the planet I'm like you know I got you so I I made it happen you know little paint patches added little installations we did a window screen repair outlet and an anti-tip bracket this says 49 7 31 and I'm still have a couple couple lingering accounting things part of like some of these little punch things need to be kind of put in here and maybe part of the countertops but long story short I am just going to make this simple for this example it's gonna be really close but rehab costs 50 grand okay I spent about five thousand dollars more than I wanted to spend which isn't that bad considering the odds of like the universe in the global impact of like how much things can change and humans and construction projects and you know okay five grand not a big deal by the way give the video like you know I always appreciate so I bought the property for 117 five the closing costs weren't that much because I didn't have a loan on it it was a simple I mean I did like a signature or to this just call it a signature and a half so I pin it on pieces of paper you know just like took me five minutes because there's all my cash and 2,500 bucks close enough rehab costs 50 grand then the management cost this is kind of a roundabout ballpark but I'm just gonna call it this to keep these numbers clean and simple but you know Ryan's time my project manager who was kind of running around grabbing materials getting phone calls over the course of two or three months now I bought this property first day or so of October 2019 November his first month in December January is the third month we were pretty much done construction at this point and then I you know I had listed it kind of in December actually we were done construction in December but it took a while to sell because no one's buying houses and Christmastime okay it just doesn't happen I took it down off the market I believe and then I relisted it the beginning of January for you know 193 five I had one showing but they didn't make an offer I'm like uh what's going on here I didn't staged it okay it's a holding cost I just threw in like 50 hundred bucks that's like JEA like water I was a little bit of a ballpark for this spread shape of this video probably about that but probably not that much but yeah all right so but then I decided to stage it that cost me and she gave me a steal of a deal typically it's like 2,500 bucks or 2,000 but this I'm like yo just help me out I'm gonna have like lots for you to do so anyway thousand bucks Heather crushed it and I got an offer like that and literally like two days later the people happen to get roll the appointment gave him the lockbox code they walk in they fell in love didn't even have to bake cookies like just literally fell in love with it let me show you what this house look like so now you remember what this house looked like before I I'm so excited because it's a good feeling to fix up property this my friends is what Barry would this was remember that old room that we did and there was a disgusting paneling we demoed all the paneling member this was that wall I told you we framed in they looked they even hung a TV on the wall this is that door gets move on this is the kitchen okay beautiful but open all this up we took the beam-down I was running across here you know it painted everything repos gray these are those lights I was talking about the Julis and LEDs hopefully are you excited about this this is fun like we're getting to the good stuff here this is the kitchen look at this got that by the way I got all these appliances for free David had a connection with another house and they gave it to him and he came to me so gracias amigo kitchen turned out good look at this flooring beautiful LVP flooring this is what they did to the main area they just put all these beautiful things by the way these aren't even professional photos is just actually one of my my assistant Jon Crenshaw he just did it but the photos look great but it's like next house I'm gonna do like a bit like professional like what he does for a living is just take photos and so I'll probably the next house but look I said we did the kind of grey carpet in here in the bedrooms and the bathroom turn I remember how gross this floor was and everything and they just did the nice accents of blue and this is that room with all that disgusting paneling that plumbing was like falling out of the wall in this room and out of the ceiling by the way complete Nuri pipes on this house master bathroom which we left the original shower and door and tile and everything and we even left just going back to this bathroom in the hall we even left all this we just refinished it shout out Shandell for the folk collective if you wanna check it out the cabinet see that blue there in the bottom right corner you can kind of barely see it but that really made a world of a difference to refinish the cabinets and the tile tub surround so you can see that staging really makes a huge difference like I said I got an offer like that it was it was epic so I'd recommend definitely staging your properties if you're going to be in the flipping world so let's see here let's this box of anticipation Scrolls down the screen my total costs you know round numbers was 177 thousand so out of pocket I'm sitting here paying them every week I'm buying all the flooring and buying all the cabinet's I am paying my management which you know probably is probably about that but you know there's all kinds of variables and so whatever but long story short so my total cost 177 thousand 177 large 177 K okay all right so what did I sell it for I sold it for 192 I sold from 192 I was asking 193 and change got an offer for like they were like we're not going above 190 we promise we love it but we're not going above Linate I'm like I'm not going below 192 and they're like no not a chance all right what do I sign so you know learn business is all about negotiation I mean I love to negotiate it come from a natural being a negotiator part of my blood I'm a Jewish businessman I'm actually only half Jewish because my mom is not Jewish at all my dad is like full Jewish and so I only buy bacon when it's half off anyway closing costs to sell 8,500 bucks so what is that the gross profit I'm calling a gross profit but it's like you know the cash the proceeds from the sale rough numbers 183 five okay so I paid the buyer's agent 2.5% which is like 4,800 bucks or something like that okay so my camera battery died and the Sun went down but anyway long story short I paid three hundred dollars because I had to get a survey I didn't have a survey for the property I paid 275 for the settlement fee 175 for a title search feed I paid 1344 1344 to the deed stamps and the mortgage doc stamps seven hundred eighty six dollars and 40 cents for the kind of prepaid property tax and I paid forty eight hundred like I said for the real estate commission for the buyer's agent and two hundred two bucks for there's some title insurance on here and anyway so long story short about $8,500 for my costs as a seller to sell this property to the buyer I'm calling this gross profit but you know proceeds to me was a hundred eighty-three thousand five hundred roundabouts and that put me at a net profit of sixty-five hundred bucks okay so honestly when I first bought the property I wanted to do way better than sixty five hundred bucks I mean come on let's also take this box of anticipation and delete that so long story short you know I would have loved to make 20 grand or twenty five thousand or whatever but unfortunately on this first deal that I did I only made sixty-five hundred bucks and you know how do I feel about that well you know you live and you learn I learned a lot I developed my systems I learned what kind of flooring I'm gonna put in we're gonna cabinets the counters and colors and different stuff and so now every every project is different every process in life you there's a new mountain yet to go through and every property is gonna be different so there can't be necessarily some just stamp thing for every single house there's problems that come up like Fargo I'm dealing with this HVAC system that they didn't pull a permit for before I bought the house back in 2014 now I'm having to deal with it I you know I could have looked that up but long story short there's just different things like behind walls there's mold and termites and you know stuff you have to repaired so you deal with it as it comes up but this was a great learning experience for me my first flip you know sixty five hundred bucks you know it's like when you're running a multi-million dollar business the construction company you know what is like a a couple days of payroll for four months of time and money out and so you know it's it's a business decision and I would say I should have bought this property about ten grand or more less that I paid for it I think that would have made all the difference but you know it really probably wouldn't have sold for that but anyway that's Barry wood thanks for watching I'm definitely doing a lot better on the next deals like that land at Inwood Terrace already sold 100 5000 anyway videos coming up on that soon talk to you soon thanks for watching liking commenting and subscribing

Channel: Jesse Lane

Views: 23,018

Keywords: jesse lane, flip house, how do i begin flipping houses?, getting started flipping houses, flipping houses, real estate investing, how to flip a house, house flipper, fix and flip, real estate, house flipping, investing in real estate, how to flip houses, real estate investing for beginners, how to invest in real estate, real estate investor, flip this house, flip houses, how to make money in real estate, how to flip real estate, rehabbing houses, fixer upper

Id: hwz3w5J2FN4

Length: 17min 24sec (1044 seconds)

Published: Mon Feb 10 2020