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so it looks like somebody that may have watched my YouTube video on a particular property might be flipping the deal I was wondering because I'm like there all of a sudden multiple offers on that deal after I made the video on it now we're gonna go talk to him and see what's up today I have something very special for you the trash a fixer-upper I walked through on a January 2nd 2019 yeah last year was flipped but it wasn't flipped by me because I was robbed that's right I was robbed of this flip and today we're going to confront the person who stole my flip and stole my profit all in this video I'll also go through the exact before and after pricing so we can find out how much the person who stole my flip made off with it all started with this video and a host of text messages see this property hit the market for $499,900 as a total fixer-upper in October of 2018 at 4 months I founded the legendary agent Danna fan Tura so that I could buy this deal and after you see all the effort that went into this you better stay around for the confrontation you might even learn a thing or two about money and real estate see I had been angling to get into this property since the day it hit the market and when I was told that ah the ancients out of town and might not be able to get in well let's just say I happen to take things into my own hands wink wink see I later wrote damn the man a message asking whom I should sue I mean whom I should call if I happen to go on the property and die well trip and hurt myself y'all don't really think I listen when someone says no right anyway but the house had my name on it as far as I was concerned and that's not even to mention the big yeah but it had but we'll talk about that in a second see I was really excited about the deal I'd love the original hardwood flooring I thought I could restore it I wasn't worried about the wall paneling the kitchen was epic the bathroom the only bathroom was great the rooms were perfect and you know what maybe they were small but to me small house meant small budget and small budget means small risk the worst thing you can ever do is get tied up on a 3,000 square foot flip and then the market shifts on you as you have to throw more and more money into an entire large project just to get the thing back to market although let's be real the place was getting chewed on by a couple termites I mean they even have their own grant cardone and exit strategy meanwhile the real pro goes over here and says looks like termites are making their own exit strategy either way I really did feel like this house needed me and I'd either flip it or I'd buy it and hold and so I kept trying I kept trying to get my offer accepted and kept on going with the jokes with Dan C on November 20th I even asked I got for sure after my injury on Catalina you guys would be sold did the other buyers walk and well you could see what Dan wrote about my mysterious disappearance which oddly happened right around the time this video of me getting kidnapped by Grant Cardone surfaced come on you little [ __ ] wake up come on screw the small D okay in case you're wondering I didn't die I didn't get kidnapped I'm here drinking Tennessee whiskey or maybe it's apple juice so anyway let's get talking about the Yaba of the dlc it's easy to get excited about properties that need your TLC your tender loving care to fix those plastered walls to fix that bathroom in the kitchen and the flooring and get rid of that paneling and deal with the cracks in that concrete front porch it's easy to deal with these things but you always have to keep in mind ya butts stick around even after you deal with some of the abnormalities and in this case this place was well parked right next to a car or auto body shop problem with this is that place isn't going away so you never know what kind of noise to expect now you hope that they only make noise during business hours but even then it's kind of tough to air BnB a place that people are thinking oh snap I'm dealing with a car shop while I'm trying to have my bed and breakfast now on this particular deal I even went as far as coming up with a budget for the place I thought you know what all in roof work kitchen work flooring paint you name it I'd be in and out of that deal for no more than 96 thousand dollars as a flip now keep in mind when you flip a deal you usually have to spend a whole lot more money fixing the place up then when you're doing a rental renovation this is exactly why we got linked below well anyway after I posted my video and I revealed my own budget that house ended up mysteriously just just so happened to get multiple offers from other people and this made me really sad somebody else ended up buying my flip by January 31st 2019 somebody else ended up buying my flip for $385,000 and I really thought I had my numbers straight this deal existed to increase Kevin's net worth by a hundred thousand dollars not one else's well unfortunately I was dead wrong and now it's gonna be time to confront the person who ended up buying my flip so it looks like somebody that may have watched my YouTube video on a particular property might be flipping the deal I was wondering because I'm like there all of a sudden multiple offers on that deal after I made the video on it now we're gonna go talk to them and see what's up now let's start comparing before and after oh just a heads up one more thing I don't want to sound like a late night a TV infomercial kind of dude but I do want to say this on December 26th a 2018 that's one year ago from the recording of this video the real estate investing course sold for $249 with a 10% off coupon well today the price after coupon is over three hundred ten dollars now why does the price go up well the price has gone up because I've always continued to hold true to my promise that over time as more course members join as I analyze more of your deals and as I add more content to the courses the price will continue to go up over time so hopefully if you're looking for some more business write offs or rental write offs for the end of the year you consider some of the courses linked below obviously confirm that with your CPA but consider joining lock in those prices today and I'm very very confident you are going to love everything that's available within these courses what's up man this place looks familiar yeah now the first question I had after we got the confrontation part out of way was why the heck did you pay so much more than I did what were you seeing in the market that I wasn't because everybody was freaking out at the end of 2018 beginning in 2019 that we were going to have a massive market crash and go back into recession we'll also reconstruct his profit in just a moment so you uh when you were buying this it was uh what earlier this year yeah which there was a lot more uncertainty in the market earlier this year and so was your expectation that I'm you were just certain this summer was going to be better no I wasn't certain it was gonna be better I just didn't think there was enough time for things to really get hmm I didn't realize how good it would get no kidding with the rates dropping and going the other way and kind of having another you know friends you know the round of buyers now as we walk inside remember that broken wall we saw before and yeah well here's the after all look what they did absolutely it's beautiful with that on the santa barbara style plaster every time it came on I was there I mean Dan and I we were like in a text message back and forth battle of I I will buy this nobody sec Dan I told you nobody else is buying this I will buy it and then you come along and take it look at this this is unbelievable this is beautiful now it was pretty curious as to why they decided to take the property to the studs which in case you don't know just means removing all the drywall and I mean there was a ton of termite damage so maybe that is a realistic solution but I really enjoyed his empowering answer about doing the right thing because I remember there's like brick veneer over here you're like wall paneling I mean look at this fireplace looks great what would you do this is drywall concrete Wow it was easy look at the pictures I mean there was some bad furniture wallpaper this room didn't need much but some LEDs and some decorative lighting you know we did do new drywall so when we ripped it down to the studs I think in your video talked about maybe not doing that night wasn't something necessary wanted to do but it's so much easier to work on when you do that now as usual I always like to ask what the hardest part of a transaction is for somebody and for Jeff it ended up being Wade Lowe's was a big delay company they just they just weren't ready there was a lot of BS yeah and that can happen so you know that was one things where I was upset to let that about it or my materials I think that's something you do a lot is you order your materials you kind of handle your materials and then hire help which is definitely if you can control that you can be in a lot more yeah it just gets frustrating you know with like lows you get a sales person pitching you on the sale and how great and smooth everything is but then they sub it out to somebody else and that other company is like oh we're getting inundated here then you get the back burner so this is how I deal with customer orders know what's crazy is this patio was the laundry room you saw before that funky sunroom then I started expressing my concern so remember my budget was around a hundred thousand dollars for a flip on this place they ended up spending much more than what I planned now they also did more but not isn't always rewarded by buyers unless the market moves I I don't know I feel like they overspent on this because it's it's only like 720 square feet and I would have done my numbers you know not over spend this much because they're going for 665 for like 720 square feet I mean you know thousand bucks a foot you can be over at the beach you know like on the water so I don't know we'll see what happens but if they spent if they're into this for for with closing costs they put let's say they put 125 in is we know they're between 1 & 1 55 25 holding costs they're in for 550 so you got to sell this thing and you know you got to sell this thing for at least 6 6 10 to make some money here yeah yeah but you know you're at 665 now how confident are you I'm pretty confident okay yeah we have people threatening cash Wow as a flipper the best thing you could hope for is the market appreciating while you're flipping and given that it took them over 270 days start to finish to do this project market appreciation would have been a must to make this deal profitable and we'll see shortly what ended up happening for now check out how they redid at the garage I'm actually really impressed they were even able to salvage the garage oh yeah yeah oh you reframed this thing you this because this thing was gone look at all this oh wow I mean cool I'm destroying your property here but I mean that is amazing it all up in salvaged you know yeah you know I mean this looks really well done though I mean from for you guys to the pecs plumbing these I mean are these even required by code the water hammer is now but you put them in which is awesome you know that going above beyond so this is all licensed contracting works and most of it seems like so usually you can tell you go through people are you know cutting corners and look at this the 20 amp GFCI tamper resistant usually people go to like HD supply and they buy the cheap non tamper resistant ones you know trying to save the 50 cents on the outlet so I mean it looks like you you really did go to the next level here and why tankless I mean why would you just throw a tank in here to save money because these were like what three grand installed what's and just that demographic that I read that Emma graphic the turnkey yeah they ease now any problems pumping the hot water over to the house they're gonna they've tested it a couple times and right there and they'll continue to do it Oh James been no issues Wow okay okay now back in the house let's take a look at this kitchen here they knocked it out of the park really good job but just a reminder this is what the kitchen looked like before and just take a moment to admire what they've done here now they are still planning on installing and ducting the micro hood but that has been saved wall they get the property to market now take a look at the bathroom and honestly this is where you should look and go wow it's amazing with some basic subway tile and bronze trim can do to really turn a bathroom around now something else I found is that Jeffrey purposely left some things for buyers to do themselves and in this case we were talking about but this is you know what you're looking for like if you could find that minimalist person to this exact perfect exactly it's a middle it's for middle most person yeah you do have a lot of room in the backyard yeah do the ten to ten by twelve storage you can make a little she shed back there oh no have you been watching that TV commercial somebody burned down mushy [ __ ] nobody burns on you she should Cheryl well she sheds on fire now here's something as well that I always talk aboupend on the things people touch and see like light fixtures and ring doorbells like it going to a ring doorbell and maybe some of the higher-end light fixtures which it seems like you have you know you went with like the four to forage cans instead of the six why the the little choice is to spend more was it just to try to convince somebody that really just really having that finished product you know just just wanting to have that appeal and I think that's valuable to that person that just wants it done right and perfectly is that then your vision sort of for the neighborhood like look at how nice we made it now we're gonna do another one it's not all about you know this one house yeah no it's about making a presentations in community and neighbors saw the work you know they see my sign they see me here all the time and if one of them wants to go list and they want to feel like at twenty twenty-five thirty thousand dollar upgrade before they should sell that's gonna make a huge here's your sample product that's awesome it might also help you buy deals in the future now before we hit the budget I want to share with you how jeffrey got the deal and how he financed it listen to this he financed it with a hard money loan what about financing on this deal how'd you pull that one off so I had it really there was the best the best situation you can be in you know you have liked the sound of this so far yeah I don't know I mean if you for anyone who's taking your class or going to other classes you want that angel investor they talk about it way up someone who's open-minded enough they understand that there's risk and they're open-minded that hey if we make money it's gonna be good if we don't this'll that's bad but you know that'll be our last deal you know and it's someone who can trust you to do that then you're in a good situation that tough thing is is that if you're pitching someone that you've never done it before you know yeah proof you know to do it so because I had done all that bird-dogging for other investors and because I have worked through these before with other people I had I had been there I just hadn't done the full project are on so we feel really good about it turnaround we'll be doing more and there's there's a lot of deals out they just got hunt him down sure so you were able to buy it all cash essentially because it was a private party financing he didn't have to go through a bank and worry about the condition of the property or fumigation or this that or the other got it okay and this is how he got the deal and as far as getting started just get in there start birddog and start doing some deals you got yeah you just got to get started the earlier you know you don't it doesn't have to be any harder than it needs to be but you do want to go out and do it and and for us you know I had spent I'm doing it when I felt I was I didn't have the knowledge you know by the time I did I felt confident in doing it and then like I said we needed to get our first one done and out of the way so even though it was a struggle and sometimes you have doubt you'll work through it you'll get there and then that's on to the next one so we can't wait to see what the future holds that's awesome thank you so much a Thanksgiving hey appreciate it yeah so basically because he had gotten his license and started bird-dogging or finding deals for investors he ended up finding one that he just decided you know what I'm going to do this one myself now let's do the budget we know that Jeffrey bought of this for $385,000 now what absolutely blew my mind is what they listed it for after they fixed it up it goes to show that I was really really conservative on my math which if you take my courses you'll find that I'm all about minimizing risk and the lower my top end is the less risk I face when I'm doing my math I said my top end would be $600,000 well they listed it for six hundred sixty five thousand dollars over ten percent more than what I would have listed for now granted they did have eight months of real estate appreciation and the minimizing odds of a market recession on their side good news for them really good that the market started picking up now we know they were on the market from July 31st to October fourth when they closed that's sixty four days which is not that bad but keep in mind it took them over two hundred forty six days from purchase to sale since they got a hard money loan on this property they probably paid at least seven percent interest on about five hundred fifty thousand dollars of money if not more plus taxes and insurance which means they're holding costs on this deal were hands down no less than $125 per day now I don't have the exact details of what they spent so I'm doing a little bit of reconstructing here but at $125 per day times two hundred forty six days from purchase to sale that's thirty thousand seven hundred fifty dollars in basically doing nothing money alone this is why I teach you in the real estate investing course that time kills you it's totally unproductive all right now let's get to the profit part so here's what the public sees they bought this place for three hundred eighty five thousand dollars and here's the surprising part they ended up yay markets going up sign of the times good for them super happy for them now a lot of people look at this and go wow six hundred forty thousand dollars - 385 that's like two hundred fifty five thousand dollars oh my gosh that's crazy well hate to burst the bubble but let's be real you got to do some subtracting six hundred forty thousand dollars - selling costs because the flippers a realtor he didn't have to pay himself money so let's just to say he had to pay three and a half percent for fees to sell the place that's twenty two thousand four hundred dollars off the profit now let's subtract those holding costs now let's subtract my guess on fix-up I know they spent more than a hundred thousand dollars but you broke six right six figures oh yeah yeah well and based on his reaction I'm guessing they spent closer to 150 thousand dollars let's go with 145 to be safe then we've got some acquisition costs to actually buy the deal of about five thousand dollars and then we have to subtract out what they actually paid for the property this means net net net on this deal they probably profited just under fifty two thousand dollars that's actually not bad for a side hustle even if it took you two hundred forty six days to do it now had they gone rental grade on this property let me show you how I would have wedged this deal if they bought it for three hundred eighty five thousand dollars I would have had the renovation done within eight weeks and I would have probably rental grade only spent seventy thousand dollars on this deal with holding costs if not less I would not have spent so much money on this deal because rental grade you don't have to at a three hundred eighty thousand dollar purchase price plus seventy thousand dollars in rental grade fix-up I would have been into the deal for four hundred fifty five thousand dollars and if the place rental grade was worth $600,000 I would have had $145,000 a wedge deal and that would have hands-down been my best wedge deal of 2019 now I ended up of finding three other really good wedge deals and I didn't have to pay cash for them which would have been another stinker there is an opportunity cost factor of paying cash for a deal like this and for getting hard money financing but all in all Jeffrey cheers to you man excellent flip profit well deserved congratulations it's a beautiful property and you know what the best part is you did it right you didn't cut corners you're not slime balling the buyer you're a true professional thank you so much for the excellent work you're doing for the community and folk]
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