I haven't heard anyone say it's an instant cash job. You can't just buy a house and sell it immediately for all that profit you obviously gotta flip it first
So in Michigan when you sell it cost about 6 percent for realtor commissions and an additional 3 percent for closing costs. So the closing costs are around $38,000 to sell a house for 430k. After you pay Uncle Sam the take home on this deal is closer to $45,000 on the flip.
@@mirg6204 Then you save maybe 2 percent of the transaction price on the deal... Which has its pros and cons but can save some money on the transaction for sure.
Just do what i do. i create contracts to sell peoples houses, then sell the contract to a investor i pay zero money to make a contract with someone. As an example of what kind of money you can make being a middleman, i just sold a contract to a investor for 7 grand the house is gonna sell for 790 grand im about to close on another contract i did up last month tomorrow for 5 grand i made 167 grand last year flipping home contracts you can do all this with no money and no licence.
Here’s the truth about flipping houses. The entire point is to buy as cheap as possible, repair as little as possible and sell as high as possible. End result: Hi chance of the buyer getting screwed.
So if you sold it for 430K and you bought it for 200K and put around 130K! You start subtracting the outsale cost which is roughly around 6-7% including carrying/inspection report etc, your outsale cost is around 31k subtract that from the 430K you’re left at 399K, if you subtract your acquisition fee of 200K and subtract your construction cost your left with 69K in profit if you used your own money!
So what’s the truth about Flipping Homes that no one wants to tell you?? Did I miss something?? What that it took 6 months?? I mean who doesn’t know that??
Ideally to repair and flip should not go over 3 months. Heads up under no circumstances buy a 2 story. If a pipe leaks upstairs..oh my gosh... major major damage. Water will go into the wall below
6 months is a bit long. Could you tell us how you could do 3 months next time? Like was there delays from various sources and did the contractors come when they said they'd come?
People in the comments be like "but you made $100k in 6 months." He spent $330k and didn't earn anything for 6 months. Also, the $100k difference is before taxes, commission, etc. A person with a decent job, could earn more money, get paid twice a month, without investing hundreds of thousands of $ every 6 months.
Could also just invest in low-capital entry, high ROI, non-syndication turnkey multifamily real estate that will provide significant monthly passive income and equity. Life changing!
200,000 buy 130,000 tune up 430,000 sell 43,000 in fees Unknown sales tax for homes over 250,000 So youre looking at maybe 375,000 net? Which means you made like 45,000 profit im guessing...
That’s not a great profit considering your pay short term capital gains and other fees. If you’re doing volume then it makes sense. Thank you for your honesty.
Not great profit? If it was all done in cash with no bank and you pay $25k in taxes it’s $75k profit on a $330k investment. That’s 22% profit in 6 months, or 44% annualized. In what world is that not a great profit?
Im confused...you didn't actually tell us a hard truth or whatever... The truth is you too can make 100k in six months if you have 330k just laying around...
6 months and 100k is not a negative, its not like you where busy anyways.
Right. But for 6 months your making no money. And worse you're spending spending money, a LOT.
Most people can't do that.
6 months to flip and sell it. Not bad of a timeline
it tooo him 6 months to recoupe the 330k not 6 months to make the $100k
@@joshuagrant6030 Find me a job that pays 100k in 6 months
Made 100k profit. Probably worked the flip
Slow money for wealthy people.. a lot of money for people just getting into the biz
100k in 6 months is still over $15k/month and a great investment
I appreciate your honesty, most people think that it's an instant cash grab
thank you!
I haven't heard anyone say it's an instant cash job. You can't just buy a house and sell it immediately for all that profit you obviously gotta flip it first
@@RigmorTalonbeard yes you can. It’s called wholesaling. Why talk when you don’t know what you’re talking about?
@@Elel765 don't gotta be rude about it :P
@@Elel765he said for a 100k profit. Wholesale is like 5-30k the most. Why you act like that ❓
So in Michigan when you sell it cost about 6 percent for realtor commissions and an additional 3 percent for closing costs. So the closing costs are around $38,000 to sell a house for 430k. After you pay Uncle Sam the take home on this deal is closer to $45,000 on the flip.
What about if I were to become my own realtor by getting a license?
@@mirg6204 Then you save maybe 2 percent of the transaction price on the deal... Which has its pros and cons but can save some money on the transaction for sure.
Ye but like, during that 6 month period you can make more money, by doing more jobs until the house sells.
Exactly
That's why you never quit your day job. Property should be passive income
Just do what i do. i create contracts to sell peoples houses, then sell the contract to a investor i pay zero money to make a contract with someone. As an example of what kind of money you can make being a middleman, i just sold a contract to a investor for 7 grand the house is gonna sell for 790 grand im about to close on another contract i did up last month tomorrow for 5 grand i made 167 grand last year flipping home contracts you can do all this with no money and no licence.
How do you find investors to sell the contracts to? What would I do to find them? Thanks 🙏
@Tha_Truth22 real estate companies or anyone with enough money to buy your contract and fulfill the sale
@@johnanderson6566 what state do you live in? I live in Northen VA
Can u help?
100k in 6 months is a win for you
Here’s the truth about flipping houses. The entire point is to buy as cheap as possible, repair as little as possible and sell as high as possible.
End result: Hi chance of the buyer getting screwed.
Thanks for the info
Not bad, if work with speed and good experience on market value.
I’m starting this soon ! Wanna make it my thing 💪🏾
We are middle class even when you work really hard and buy a house. We still stock in loan for years
Thats very good money for me 😁
So if you sold it for 430K and you bought it for 200K and put around 130K! You start subtracting the outsale cost which is roughly around 6-7% including carrying/inspection report etc, your outsale cost is around 31k subtract that from the 430K you’re left at 399K, if you subtract your acquisition fee of 200K and subtract your construction cost your left with 69K in profit if you used your own money!
So what’s the truth about Flipping Homes that no one wants to tell you?? Did I miss something?? What that it took 6 months?? I mean who doesn’t know that??
Lol
@R.J. Adams he didn't say any of that in the video so I missed the point too tbh
100k for 6months is a nice profit... If you've calculated the selling too. You can make ~4 houses a year so it'll be 400k a year...
I’m cash flowing till I can get an equity loan.. then use that to work on the next
so youre renting it out?
@@JayLupe yes after renovations are done
@@susieblanco2722 how's that going? Post updates!
How about your selling cost and money cost?
Why did it takes 6 months to recoup the rest of the money and how exactly did that happen?
Fix up probably big house and maybe took awhile to sell and the whole closing process
@@spurs5677 I would probably try smaller houses then idk
Ideally to repair and flip should not go over 3 months.
Heads up under no circumstances buy a 2 story.
If a pipe leaks upstairs..oh my gosh... major major damage.
Water will go into the wall below
Do you pay monthly payments on a hard money loan or you pay the total amount borrowed plus interest at the end of the term?
It's all interest
Depends on the deal. Some want monthly. But a lot will just take lump sum end of deal.
What about taxes
6 months is a bit long. Could you tell us how you could do 3 months next time? Like was there delays from various sources and did the contractors come when they said they'd come?
People in the comments be like "but you made $100k in 6 months."
He spent $330k and didn't earn anything for 6 months. Also, the $100k difference is before taxes, commission, etc.
A person with a decent job, could earn more money, get paid twice a month, without investing hundreds of thousands of $ every 6 months.
how much do you make per month?
Do you have one sale house
Could also just invest in low-capital entry, high ROI, non-syndication turnkey multifamily real estate that will provide significant monthly passive income and equity. Life changing!
200,000 buy
130,000 tune up
430,000 sell
43,000 in fees
Unknown sales tax for homes over 250,000
So youre looking at maybe 375,000 net? Which means you made like 45,000 profit im guessing...
Lol yea he’s not mentioning taxes which can be at least 40% of your profit
Whaaat? It takes time AND money to flip a house???? No waaaaayyyyy
Genius.
That’s not a great profit considering your pay short term capital gains and other fees. If you’re doing volume then it makes sense. Thank you for your honesty.
Not great profit? If it was all done in cash with no bank and you pay $25k in taxes it’s $75k profit on a $330k investment. That’s 22% profit in 6 months, or 44% annualized. In what world is that not a great profit?
You have to also include closing costs. So realtor commissions, and local fees and taxes. On 430k the closing cost are between 30 and 40k.
Didn't know frank lampard flipped houses
Why did it take 6 months to flip? I am just curious, was it the contractors, etc..
permits, materials and full reno
Still a 30% CoC
Here's the truth: , THE MARKET ID ABOUT TO CRASH
That's why you need to take multiple projects so you would have a decent income
How much goes to Uncle Sam?
How about 0 to 10%
I find deals let me know anywhere in the country
Let's talk.
@@-mm-4434 have you gotten ahold of this guy
@@r6_tanner no I haven't. But I've found deals none the less
how is 100k in 6 months bad??????
Im confused...you didn't actually tell us a hard truth or whatever...
The truth is you too can make 100k in six months if you have 330k just laying around...
I don’t get it lol what was bad about this
I mean dirt cheap
If you used a realtor you didn’t get $100k probably more like $70k
Not bad $200,000 for a year
What do you mean it took you 6 months to recoup?
The whole process took 6 months. What do you mean what does he mean? Goofy
@@JB0010 how does it make me goofy when he uses recoup in a goofy fashion.
@@Thaijler You really are a goofy.
He took to long to renovate. If he spent 230k on a house, should've taken 90 days tops to complete reno. Maybe a 4th month to sell.
Whaaaa! It took me 6 months to make 100k! Poor me!
Wheres the truth no one told me? Sounds like hes just flexing while downplaying it
Couldn’t I do multiple houses in said six months if I paid a little more in labor
@No Clue Seems reasonable lol thanks for the advice appreciate it!
Why would you pay for points on the loan if it’s a flip?