Hey: what's going on team, it's ricky with tackbot solutions. I have nick paladino here who is my partner for all the house flips that we do and we actually went ahead and uh on instagram. We asked all of you guys. You know what are some top questions.

You want answered so first off, if you guys don't follow us on instagram and you're, wanting to learn more a little bit more about real estate and how to get started, especially for 2022. If that's a you know, resolution you have uh it's going to be linked in the description, both my instagram and mix of course. So if you have any questions, even beyond this video, we encourage you feel free to message us and, of course, follow for updates on all the different house slips that we have going on as of right. Now, if i'm not mistaken, we have a total of six projects, meaning six different houses, uh that we are in the works of flipping uh.

I thought it would be a really good idea to not just provide you. You know some insight on a grand and - and very you know, uh extreme flip, where you know we go through all the renovations, but as well as you know, one of the first flips nick and i uh took advantage of uh was a very simple flip. So i wanted to break down in the simplest form uh one of the flips that we did, that was about twenty thousand dollars in renovation and then another flip that we did. That was a little bit over seventy thousand dollars in renovation and compare and contrast the two.

So you get a better understanding um as you're just getting started. You know: do you wan na uh, take on a a big flip project or maybe starting small and scaling? Can be, you know a way to get started? One of the first questions that i actually want to answer, and this is actually coming from instagram and let me go ahead and make sure i get his name so uh, it's it's junaid and he's asking. How do you find contractors on your first flip, so one of the biggest things that i would personally suggest is that uh based off of the connections that we were able to establish with a previous flipper. You know some of you guys might know him, especially if you guys follow us from instagram his name's lenny, and he was a huge positive influence.

He's pretty much a mentor for nick and myself. Nick is actually a real estate agent under lenny's brokerage um, and just by being able to do a flip, you know kind of just with him uh kind of like overseeing everything. We were able to build relationships and build our connections with the contractors that he used again, just speaking from our experience and how we were able to build our list, one contractor knowing another, i feel like once you kind of get your foot in the door. It's very easy, especially if you're niched down in a specific area.

You become very well aware of what contractors to work with, especially if you have you know six different projects going on how you can overlap them and stuff like that. So that's a great question and also just like we said right for our first flip. We had lenny to kind of guide us, as he was very well experienced if you guys are ever in the arizona area and need assistance with your first flip. I hope that you know you know we're one message away feel free to message: nick palladino again, his instagram is linked down below and if you have any specific questions, especially if you're looking to flip your first property, i would love to you know either work with You and or be of value to you, so i'm going to go ahead and let nick break down this foreign florence flip uh break down how we came across it.

So how we found the deal, everything that went into it and then i'm gon na be explaining a couple of things at the at the end yeah. So this is one of our most recent ones. We actually just got it under contract the other day and it's closing in about 25 days. So it's a fairly quick close.

We picked this up november, 1st 2021.. One thing i do want to note is this: was a post possession uh pickup, so it means basically we got this from a wholesaler and we allowed the tenant that was currently living in the property we gave them two weeks after we closed for them to move Out which kind of uh slowed down our entire renovation process? It took uh. I want to say yeah, almost two months to get this done when it could have probably taken six weeks, because we couldn't do any work to it uh. So we got it offered to us at 255 thousand dollars after closing costs we're at 259 000 and we ended up actually having this daisy chain down between two different wholesalers um.

So the first wholesaler i think, got it for i think they made a couple. I think 15 000 on it and then the second wholesaler made four thousand dollars on it. So we tend to see that a lot a couple of our properties right now it goes through one wholesaler and then a wholesaler presents it to us as long as the deal makes sense from the from the price we're getting it offered at. We will take it.

We don't mind if multiple people basically are making a profit on it um. So then we, this is the one that we spent only 21 000 on. It was a pretty new build 2004 build, so we didn't really have to do much. Besides cosmetic upgrades, you guys can see right there, our renovation list appliances, trash removal, um, we did some flooring in there and then pretty much just exterior and interior paint.

One thing i do want to note on painting lenny actually brought this up to me recently is pretty much, no matter what you do, no matter how new the paint is, it's almost a good, like almost always a good roi to paint the property. So here's some before pictures as well um and then, whenever you do paint, always make sure if you're in an hoa to get hoa approval on it. But yeah i mean it was pretty pretty good condition. Besides, just the carpet was absolutely destroyed and needed a fresh paint inside and outside.

So this was a very, very straightforward, flip, not huge profit margins on it, and we knew that going into it, but we also knew that it was going to be a very light. Rehab with not a lot of um, anything that was going to be hidden behind the walls that we were going to have to remedy um. So that's why we took it on. It was just a little bit of a lower risk property and then uh holding costs.

As well so this is one thing you guys want to keep in mind: ricky pays for all these houses, so we don't actually have holding costs through a hard money lender, which saves us a little bit money on that. But you are going to have your insurance you're going to have your water bill, you're, going to have your electric bill and sometimes you're, going to have a gas bill as well. So that's something you want to keep in mind. Fortunately, on this one was only about 300.

We still are holding this property, so it's probably gon na be around right around 300, when we close on it and then uh the total expenses right here, 21 678 for renault. We have holding costs of 284 and uh the purchase price, all in basically our 259 000, with what we bought it for all in and then estimated closing costs on the sale end of it. This includes um commissions from the both buyer and seller agent. I am the listing agent on this, so i take less of a commission than what i would normally do or what we would normally do if we were listing it with someone else um, so we're estimating about twelve thousand dollars in that making our total expenses.

293 thousand dollars on this property, and we ended up listing it for 315, 000 and within 12 hours after listing it, we got an over ask offer of 319 500, making our total profit. 26. 484 on this property. Like i said, it's not anything crazy.

We try to get 10 percent cash on cash return, meaning if we're going to invest for this property, for example, our 10 percent cash on cash return would be. We invested 264, 000, essentially um, so we're a little less than 10 on this, but, like i said it was very straightforward, low risk and that's why we took it on so now. I personally wanted to show you uh the the after right, so one of the first things that some of you guys might ask if you don't understand what a whole seller is uh, he was talking about it being double wholesaled. The wholesale means that it's an off honestly, not even always uh, but normally an off-market listing that they were able to uh.

You know, arrange this contract that the seller was willing to sell this house for a set dollar amount. Sometimes those contracts get resold and then resold to the point where we end up acquiring it. If, like he said, the numbers make sense, so this house was never posted on the mls. It was never posted publicly, that's what it means by it being an off-market listing.

So i just wanted to make sure that you understood that how did we acquire it with our connections with wholesalers so again, another great value, piece um, if you're wanting to get started, uh connecting with wholesalers again, if you're in the arizona area message us right. If we don't end up acquiring a property, but it might meet your criteria, we can hand it down to you as well. I want to show you that after picks, it's nothing crazy and, like you said this house was acquired for 255 000 um with overall a little bit over twenty one thousand dollars in renovation i'll. Just let you guys see.

This is the front of the picture. Uh front of the house so in comparison to the before you guys, could see that you know the colors that it had much more outdated. The colors that we now have much more modern and you know, obviously makes a lot more sense for someone wanting to have a house move-in ready. This aligns with that set criteria.

This is the overall kitchen lightening it up uh. This is the living room, and these are this is the master bedroom, if i'm not mistaken, and then this is the backyard in comparison to most of our other flips a super light renovation. One thing that you guys might notice right away in comparison to my other video is my other house that we uh ended up flipping in gilbert had staging meaning that the house was furnished during you know uh. While it was listed.

Why would we not stage this house with furniture? I think a lot of it has to do with price point. This is something that again nick and i have learned in the past. You know a couple of uh just months of flipping properties, i would say, as you begin to get into like the four to five hundred thousand dollar range, uh and above it makes sense to furnish a property, therefore, to stage a property and tack on that additional Expense, because when you have someone moving into that property, especially in arizona uh or trying to see themselves living there, you want to make sure that there's something that they can kind of like build an emotional connection with uh when it comes down to a house in The lower 300 000 range again. This is probably either a first time home buyer and someone.

That is again just being completely blunt with you guys, uh trying to buy anything. It is that they can afford right. So we don't have to take that additional step or make that additional investment of an additional two to five thousand dollars to stage a property which will eat up into our margins if it doesn't actually make sense. So that's again, one very simple point that i wanted.

You guys to understand and the same thing with what he said that normally we aim for a 10 cash on cash net return. If this house was over half a million, if the dollar amount that i had to invest was over half a million we'd want to probably be more selective. If we saw it to be something that needed more renovations, we would probably not have taken on this property if the margins didn't meet with our set criteria, but because this house again was a very easy house where they can have six ten different projects. This is very minimal.

Type of you know, contractors that you have to overlap with one another one another and due to nick's experience, it was very easy for him to kind of manage this. As again, it would be somewhat considered, in my opinion, more of a beginner flip, so for all those that are watching if you are looking to flip your first house, this is kind of called uh. The lipstick approach right, where it's very light renovation and it's more to gain experience so again, if you're in arizona and you're wanting to flip a property, make sure you message nick down his instagram is in the description message him get connected with him and we'd love To be of assistance for you for your first flip, so now let's go ahead and talk about the numbers for the uh chandler flip this one just where it gets a little bit more juicy yeah. How did we find this flip? It was someone threw instagram instagram yep, so they were actually scalping, um craigslist, which we hadn't heard of before, and he was on top of it.

I think, within the first hour of this previous owner listing it, he actually got a hold of her. He sent it to us, it looked good for what she wanted for it compared to what we thought the arv was or after renovation value. So we set up a go uh to basically walk through the next morning and we locked it up that same day. We ended up paying the finder.

We tried to always pay about 10 profit of a projected profit to our finders, so it was uh. We estimated about forty thousand dollars profit on this property, so we paid him out four grand for just finding us for basically just emailing the um previous owner and getting the meeting set up for us so um we like to do that quite a bit. That's how we find a lot of our deals as well, and one thing that you should know is: i would say that about uh 40 to 50 of the flips that we do, or at least that we did last year. Um were properties that were presented to us by people that followed me on instagram right people that watch my youtube videos and we've done everything right.

So if you're, if you come across a deal, if you know a friend or family, that is potentially trying to sell a property uh, but maybe you just don't want to find your fee right. Maybe you want to be a little bit more involved, especially if you're in the arizona area we've done, partnerships where we do complete rev splits right. So the biggest focus that we have, especially i know for nick and i for 2022, is to work with as many people that follow us and present us. You know value and deals and for us to be of value to you.

So if you're trying to actually learn how to flip - and you want to be a part of it - i hope that you know that even when it comes down to a profit, rev split is definitely something that you know we take into consideration. My goal is: if we can do one flip every month and that's brought to us by you, know someone that follows us, especially in the arizona area. That'd be an amazing goal to be able to accomplish for 2022. So you want to talk about the uh right.

The overall renovation yeah so um this was one of our biggest renovations. It was our biggest one minus the the giant paradise valley flip that we had. We spent a total of seventy three thousand seven hundred and forty four dollars on this, and it is only an eighteen hundred square foot house. So to put that in comparison, we, it was a huge cosmetic and um.

We. We also did kind of transform the floor plan a little bit um, so we tore down some walls. This is an incredible before and after i think one of my favorite flips that we've ever done just because of the actual transformation itself uh. So we spent almost five grand just demoing the property and getting it prepped up, gutting the property trash removal.

I'd say we would actually probably over five grand on that alone, just kind of getting it ready um for us to actually renovate it. So we did some roof repairs, um, and i want to talk about that a little bit later. Actually, that's actually one thing that i really do want to talk about because the roof repair we ended up, giving credit anyways. So we that 975 dollars um.

We should have just kind of almost replaced the roof, which is something that we could have done, but we ended up giving them credit anyways at the close, so they're going to replace the roof anyways and we're actually splitting that in half with them um landscaping. I think we're in 11 000 after everything, um with some of the plants and stuff in the brick wall we actually had to repair as well exterior paint all that kind of stuff was pretty standard. We did a lot of drywall stuff because we did tear down walls. We had to do a lot of drywall repairs.

We got all new doors, all new frames, all new baseboards, all new cabinets as well, so the cabinets was a huge expense. We did flooring in here. Um our handyman labor, just to labor alone, was almost ten thousand dollars, so we're at eight thousand dollars. In that alone, counter tops um.

We had to reroute the plumbing and all that kind of stuff. So that's kind of where the majority of our budget went was just kind of redoing the floor plan. Getting everything fresh in there cabinets are always one of the most expensive things. We don't always do new cabinets, but we needed to on this property.

For the price point we were listing it at and needed new cabinets for sure, um, yeah and then what else we did two whole bathroom renovations as well, and then um. We had some repairs with the we actually had to remove a tree because of um a binzer request or an inspection request on there. I think this is one of the first properties that other than paradise valley flip, where we went back and forth so many times. Based off of so many things being brought up during the inspection period so like for an example, if you don't understand that uh we posted the house for sale uh, we received an above asking price, offer we're under contract right.

We sold the house, i mean we are under contract to sell the house. They still have. You know, 30 to 45 days to close on the house and during that time there's an inspection and during that inspection they brought up. You know the roof.

They brought up. The backyard they brought up a bunch of different things where there was just a lot of negotiation and credits that uh took place and that ate into our margins. But again, like nick said, could we have potentially gotten away with you know um a better or original renovation to the roof? So therefore, we didn't have to give the credit uh, definitely but again, just to make it easier for both parties we're able to negotiate by being able to credit half yeah i mean we don't want to the roof, was in decent condition. It had.

We got an estimate of about six years left on it, but part of the negotiation was they wanted a completely new roof and we felt that was fair. We're obviously not going to give them a house that we weren't comfortable selling. So i don't want to make it sound like that um, but it's just part of the process so something we had to negotiate between ourselves. I want to show them right: the before and afters.

This is the chandler house. This is how, when nick and myself um, you know pulled up to it. This is what it looked like. I thought it looked really rough, the backyard just so you guys know um.

All these weeds that you see right on over here were actually growing into the house, like i'm inside the house, and i can see the weeds and the grass growing into it right. So i pointed that out uh to the owner. You guys just can see that this whole backyard, like that's a 12 000 renovation, because of this huge, like cactus palm tree. Looking thing it was just like it was so heavy and and the biggest expense that we've ever had when it came down to about a landscape, what's called uh expense.

This was one of the master bedrooms. If i'm not mistaken, this was the kitchen again. Why didn't we reuse the cabinets? Well, i'm sure you can see right why we wouldn't we use those or just repaint them again very, very outdated, and we went from this and nick and mark right. So mark is actually someone uh that we kind of had interning with us and uh.

Fortunately, now he's working with us, but they took this chandler house flip and turned it into this. So again, the overall exterior of the house. You guys can see that it's a much more updated look. This is now the kitchen.

They completely went off on it with it's now a double you know what is it called the double island, yeah double island, and then this is just a better picture of the overall kitchen, much more open. They took down the wall right, a much more open. Look brand new cabinets just again and staged right in comparison to the previous property. This one we intended to have over that half a million mark, so it made sense if not right.

This would have just really looked like a big old. Just like open rectangle of a house, but by being able to stage it again, you give it much more character, something that you know where the buyer can potentially see themselves living in. This was the bathroom. Where, again, i feel like they did an absolute amazing job and when it comes down to the backyard, just really simplified it and made it look very attractive, especially for the year that the property was so now when it comes down to the overall numbers of the Property, after all, the um overall total renovations of 73 000.

Do you want to talk about holding costs, yeah holding costs? Luckily, in arizona when it's the winter time it's pretty pretty low when you get one in the summertime it, you may actually really need to figure out numbers on that, because the electric bill can go way up, but we are pretty low on this. I want to say uh 830 dollars in holding costs and that's pretty much exact because we're actually closing on this property on wednesday. So that's going to pretty much be exactly what we're going to be at and then purchase price all in with the finders fee and everything we're at 385. 000 closing costs on the sale end with commissions.

With that closing credit that i talked about um, we are at 30 000, so that was a pretty high closing cost. But it was mostly because of the credit that we offered them total expenses all in on this property, 490 000, and we ended up accepting an offer um, i don't. Even it was like almost twenty thousand dollars over list price for five hundred and forty three thousand five hundred dollars, making a total profit. Fifty two thousand seven hundred and seventy one.

One thing i do wan na note is: if you guys do ten percent cash on cash return. We were over our 49 thousand dollars, which would have been 10, so we're at 52 000. So we are over our um. What we wanted on this one, it did take a little bit longer.

We were just also really busy during this time and we're still building out our contractors list. So we had to kind of overlap. Quite a bit could have probably taken maybe a 30 days less but overall, 433 dollars a day, profit which i think is really really good on this property. So yep and again one thing that we have like, i would say the real benefit in um.

Is we don't have hard money lenders? We don't have people that we have to pay interest on every single month. So one of the questions that was actually brought um to me through instagram is you know: do i need to pay for this house cash and or do i just need to put a down payment so when it comes down to buying a house period right, you Can qualify traditionally right, you get uh, you take that 30-year uh 30-year loan um when it comes down with your intention wanting to wanting to flip it. I wouldn't say that that would be, i would say the best approach, and also you need to think about it. For the seller, uh is the seller going to want to wait 30 to 45 days when you're trying to get a really good deal to try to close on that property or if you pay cash right.

So when you pay cash for a property, you can close. Two weeks or sooner right, so you need to understand it's viewed as less risk and less time wasted for a seller to sell it to someone that is paying cash. Does every seller care about paying cash? No, definitely not, and do you always need to pay cash? No definitely not uh, you can get a traditional loan. You can get a hard money lender, but you also have to take into consideration if we would have had a hard money lender uh for nearly half a million dollars right at 122 days.

I mean that would be uh at 12, which is pretty average. That would be about four months: four percent five thousand dollars every single month, four months, yeah about twenty thousand dollars. Our net profits would have been cut from fifty two thousand to about thirty, two thousand. So again, that's a big chunk of change.

If that's not an expense that you wan na put yourself through and especially if your first flip is even you know to this degree of the amount of renovations, you would probably take a lot longer. I mean you've seen it firsthand, where some people that are flipping properties - it's been six months and they still haven't posted it for sale. It could be due to the lack of experience. The lack of you know uh connections when it comes down to the contractors and if you have a hard money lender the amount of fees that you tack on it can literally erase all of your net profits.

So again, if you're someone that's trying to flip and you don't necessarily have the cash, but you are really good at either sourcing deals or you have a deal message us on instagram, we'll pay for the property cash. You don't have to worry about that. The biggest value that you provide to us is that you're presenting the deals - and one thing that i actually also wanted to say, is not just with this listing, but within one of the other listings that we've actually are working on right now. We're connecting with a lot of real estate agents so, if you're a real estate, agent and you're in arizona, please message! Nick again, his link is in the description and anytime that you're about to list the property, if you're a new real estate agent, if you're about to get your license like we want to connect with all of you.

If you can add us to your buyers list and again we'll be a cash buyer, send us your deals even before they hit the market. So if we can be even of value to you guys, which will be of value to the people that you're listing for for a quick, close and an easy close, i would love the you know opportunity to be able to work with you guys on a closer Basis but um other than that is there anything that you wanted to say no and then, as the agent thing. Basically, you would represent us as your client, so yeah we'd pay the normal commission. If you find an on market deal or whatnot correct yeah, i mean anything right when it comes down to just making sure that both parties get paid uh existing list, uh existing real estate agent, if you're, not even an agent but you're.

Just you know really good at sourcing deals. We want to be able to connect with again as many people as we can, especially for 2022 uh and one of the last things uh that i personally is there anything that you wanted to that's pretty much everything yeah. So let me go ahead and see if i can find this one, it doesn't look like. I can alright well dang it.

What was it like? I guess it's like. Do you need a real estate license, but oh yeah yeah, so one of the questions that we got asked is: do you need a real estate license obviously uh when it comes down to flipping? No, you don't need a real estate license uh but being like very well connected, i'm sure any successful real estate flipper will tell you the same thing where being connected with very uh, just creative and and uh useful, real estate agents. It never hurts right, especially having nick as my partner and being able to get that reduced commission on the selling part. You know every percent counts, especially when we're talking about hundreds of thousands of dollars which again do you need your real estate license.

Do you need to get it no, but if you want to, it doesn't hurt right, but also connecting and working with real estate agents, which is why i think you know, even for all of you guys, if you're trying to buy a house if you're trying to Flip, your first property and you're thinking about potentially getting your license to not you know, take on that additional expense of the commission. Uh then feel free to reach out to nike. You can either assist you and or guide you in the right direction based off of his experience, but yeah i mean wanted to show you the before and after of uh, some of the flips that we had and have going on. As of right now, like we said, we have a total of six projects going on.

Actually, oh seven, if there's any specific questions that you want answered, comment those down below but again, if your goal for 2022 is to even buy your first house or flip your first house or just be a part of a house, flip click. The first link in the description that's going to be next instagram message: him get connected and real estate agent or not. We want you know just just the opportunity to be able to work with you, especially for 2022. So really do appreciate you guys time hope that earned your thumbs up.

Please consider subscribing and, like always, let's make sure that we end the year on a green now, take it easy team.