One of my favorite things to do is flip houses. It can be stressful, costly, and risky, but it is also a lot of fun. One of the things I like best about house flipping is every project is different and brings new challenges. This year I had a goal to make $100,000 a month flipping houses. I am behind on that goal which is okay (I like to set huge goals that are very challenging). I had a lot going on the start of the year; buying a 68,000 square foot commercial property, and starting a real estate brokerage from scratch. The first part of the year was extremely slow buying flips. I only bought 7 in the first 6 months of the year when I wanted to be buying three a month. I have tried to make up for that by purchasing 11 house flips in the last 2 months! This is by far the most homes I have purchased in such a short period of time. In this post, I will show you how I bought the properties and include videos of most of the flips.
Why would I want to buy and sell so many house flips?
Some people think my life is crazy with so many things going on. I have flips, rentals, a brokerage, the blog, books, and I have a family as well. However, I think it is fun to have a lot of different things going on and I have an amazing team. There is no way I could do all that I do without a lot of help. While I do a lot of flips, Nikki my project manager handles most of the contractors and behind the scenes work. Justin on my team helps to list the properties and get them sold. I also have a company that helps me with my direct marketing. My role is to find deals and find the money to buy them. The video below goes over how I finance my house flips:
I have big goals and I have expensive taste in cars. House flipping has been a great way to earn a lot of income, which I can invest in rentals and the occasional car.
How did I find 11 houses to flip in 2 months?
In the first part of the year, I was trying to buy flips, but I was distracted and not working as hard as I could to find deals. After we got settled into our office, I spent much more time looking for those deals and it paid off. I bought all 11 houses from the MLS or our direct marketing campaigns. With our direct marketing campaigns, we send postcards or letters to people who may want to sell their home. We usually have to send out 1,000 pieces of mail to get one deal. Below is a breakdown of how we bought each house:
- 6/15/2018: We bought this flip from a direct marketing campaign. It is a house that had a flood from frozen pipes and needs a lot of interior repairs.
- 6/22/2018: We bought this house from the MLS sort of. An agent from my old office asked if I was interested in a house that needed work. She had a seller who did not want any showings and wanted to sell fast.
- 6/22/2018: We bought this house from the MLS as well. It was listed for $215,000 and they received multiple offers the first day. We were able to buy it for $209,000 since we had no inspection and no loan contingencies.
- 6/22/2018: We bought this house from the MLS. It was listed for $199,900 but needed a lot of work. It was overpriced for the condition and we offered $145,000. I did not think the offer would go anywhere, but the seller countered at $150,000 and we accepted it.
- 7/11/2018: We bought this house from our direct marketing campaign. The house was inherited by the seller and had been rented for 6 years. Instead of fixing it up, the owner decided to sell it quick.
- 7/12/2018: We bought this house and the next one from the same owner. She had two rental properties that were not being managed well. She was tired of the hassle and agreed to sell them both to us.
- 7/12/2018: See above.
- 7/16/2018: We bought this house from the MLS. It was listed for $255,000 and we ended up buying it for $245,000. They had multiple offers as well, but took our offer over higher offers because of the quick closing.
- 7/24/2018: We bought this house from the MLS. It was listed for $260,000 and we got it for $240,000. We offered a quick close (10 days) and the sellers were able to leave the furniture they did not want.
- 8/22018: We bought this house from the MLS for $234,500. It was listed for $229,900 and I offered above listing price to get it before any other offers came in.
- 8/6/2018: We bought this house from the MLS. It came on the market as being under contract, but I emailed the agent anyway and told her to let me know if the contract falls apart. She emailed me a couple of weeks later and said the contract was falling apart and wanted to know if I was still interested. I said yes!
You can see the numbers and more information on each of my flips here: House flip scoreboard.
How am I able to get deals from the MLS in a hot market?
People tell me all the time they cannot get good deals from the MLS anymore. I live and buy in Northern Colorado which is one of the hottest markets in the country. We have had record low inventory and huge prices increase every year for 7 years. I do not pay more for flips hoping they will be worth more in the future, but I can still get good deals from the MLS. Sometimes I negotiate more, sometimes I act quickly, or sometimes I am proactive on deals that may come back on the market. I have also built a reputation as someone who will do what they say.
How can you see videos of my fix and flips?
Almost all of my house flips have videos before we do the work and after we do the work. I created a playlist on YouTube just for these videos. You can see the playlist here: https://www.youtube.com/playlist?list=PLoQKPI7WPeHhEARu3mXCbVF2cZNHhw_F3
You can also see the last house we bought below. It was pretty gross with syringes and all.
If you want to learn more about flipping houses you can also check out my book: Fix and Flip Your Way to Financial Freedom Finding, Financing, Repairing and Selling Investment Properties.