A hundred and Seven thousand dollars profit flipping a property in Mesa Arizona What's going on guys? It's Ricky here with techbook Solutions and today I'm going to be breaking down the numbers for you guys on our Mesa house flip. Um so one of the first things that I want to share with you guys is you make all of your money when purchasing the property and what I mean by that is negotiating and finding the deal right? Uh, we found this thing off Market through a wholesale I mean and that never hit the MLS We weren't competing with other people, other traditional, uh buyers. Uh, we're probably competing with other investors. Uh, but we ended up purchasing this property for 288 000.

Believe it or not, the wholesaler that actually sold us this property. he got it like for super cheap I don't know what he did. he was a door knocker meaning that he knocks on people's doors and he asked if they're interested to sell to a cash buyer. He got it for like I I Think he said like a hundred and forty thousand dollars.

He ended up making 154 000 profit with assigning it to us and he didn't put one dollar to it. So how that works is, uh, he gets someone to agree and they sign a contract uh, to sell the property at a specific price and then he just reassigns that contract the right to purchase that property and he adds his fee. Some wholesalers either make just a few thousand dollars, maybe five thousand, Three thousand, Ten thousand. That's more realistic.

This guy walked away with a hundred and fifty Four thousand dollars. So again, I mean I Don't know what he did to negotiate all the way down there? You guys can let me know down in the comment section. Uh, we didn't know him, he just reached out to us and uh, we we get reached out to all the time through Instagram and through social media. Uh, by different wholesalers or different people that are interested in selling their properties because they know that we pay cash.

Uh, we close. We don't take 30 days to close. We don't borrow money, there's no middleman. Uh, and we just get you paid right away.

So if you know anyone interested in selling their house, send me a direct message on Instagram or send you know, uh, send me a direct message via Discord and I'd be more than happy to try to work something out and also get you paid. Uh, even if you just end up being the middleman and uh, assigning us the deal, right? Uh, so 288 thousand dollars? That's what we purchased it for. Uh, the total cost, uh, to close? Meaning like with title fees and all that stuff, uh was about 291 000. Obviously the more that you work with different title companies as we flip properties pretty often.

Uh, my business partner Nick Palladino has just really good relationships so again, you can get those costs down. Uh, renovation budget originally was 65 000 and we actually stayed a little bit below budget at 52 300. Um I Thought it would be quite interesting I Normally don't show all of this. Uh, because it literally just gives you a full breakdown on what we paid for everything.

Um, so you guys can look into it. We obviously use specific contractors that we work with all the time, so these prices are a little bit cheaper than maybe a traditional homeowner would pay, but it's all about volume, right? We have three to four different projects going on at a time, so therefore, they give us a better rate to be able to work on these different projects at the same time. So again, just want to make sure that I disclose that uh, trash removal 2400 dumpster rentals 1100 But I Think that this can really shed some light on like, um, where the expenses come from, right? Because it's like, okay, well, 50 000 is is our you know amounts spent on Renovations But what exactly does that mean, right? Some people might have spent more, some people might have spent less, right? Um, and you can see Garage repair is 825 Handyman 1900 Home Depot 4100 Exterior paint 1600 Very cheap Cabinets 5800 nearly 59 Uh. flooring material 2600 Drywall 2500 Floor and Decor Uh, that? 1098 baseboards Uh, 425 Bathrooms 1800 We got Landscaping 8600 Again, we really shed some light on what's expensive and what's not.

Uh, the backyard was absolutely horrendous when we first purchased the property. Uh. Countertops: one thousand dollars Electrical: 550 Shower: 1900 Countertop: 1700 Flooring: 1500 Yen This is the labor part of it Sinks: 270 Baseboards: 288 Amazon Purchases obviously with a different knickknacks and accessories that we have to buy for the house: 1600 Uh Blinds: 296 Uh Backsplash: 400 180 Foods and drinks 42 Appliances: 1200 Labor: 3071 Exterior wall paint 300 x to interior paint 1800 Deep cleaning Obviously just having someone clean the house 250 Sign Install: 45 Staging Again, that's actually stage the property. So what we mean by that is again, someone actually puts their Furniture uh and the idea behind this is you don't have to do this.

But again, we negotiate with Stagers because we focus on volume. Uh, but when someone walks this property because it's staged with Furniture it's more possible that they can kind of see themselves living in there and that's the idea behind this, right? Uh, if it was an empty house. Sure, if someone can really see themselves living in there great, but it's a little bit harder for, you know, maybe a first time home buyer or someone that you know. it's more of that emotional connection, right? So I just thought I'd share that with you guys.

Um, and uh, so we got staging. U-Haul 113 Photos: 155 Total Cost: Uh 5200 52 369 Insurance Obviously we insure the property while we own it. 193 dollars Water and Trash: 406 Electrical 252 That's something that my business partner Nick does really, really well. I mean making sure that we have those, uh, what's it called? uh, just Utilities in place and then as soon as we sell the house, making sure that we cut out so we don't have to take on more of an expense that we we normally do.

Pool Service 300 Holding cost would be 1151 One of the things that I want to disclose is, uh, remember, if you are someone that is flipping a property for the first time and you are someone that is borrowing money, uh, you are, most likely, um, going to incur more expensive holding costs I don't borrow money, right? Nick doesn't borrow money. It's all of my money being invested, right? So therefore, there is no hard money, interest fees, or I have no investors that I have to pay. Uh, normally. uh, traditional house flippers.

Uh, take on hard money loans and those loans are anywhere from 10 to 15 percent interest. Uh, that's annualized, right? But you're paying that interest most likely every single month and the longer you keep it, the more interest that you pay nothing. None of it goes towards principal until you actually pay off that loan, so it's something to take into consideration. I Mean we didn't hold this property for too too long, but just so you could see.

Um I mean we had it for a total of 76 days. so 76 days. I mean you can do the math if you would have taken out a loan for the total uh dollar amount that we had in it I was about 362 000. So imagine having to take out a loan.

You know originally our expectation was 65 000 in Renault. You know, and with the purchase price, it probably would have been like a 300. And you know, eighty thousand dollar loan that you would have had to borrow money on and that interest would have applied at least 3 800 every single month. And again, that eats away on your profit.

The reason I'm disclosing this is because you know the 107 is 107 because we had no other expenses. Um, and it's just something to take into consideration. where it's not impossible, you might be watching this video and be like holy, you know, excuse my language but you're like I I don't have 362 thousand dollars I can't flip houses again. Everyone provides a different value.

My value is I Source deals through my following right: I get people paid Um, and Nick is pretty much the project manager and the brains behind all of the flips, right? So we complement one another. I have the money we need, incur no fees um and then also I'm able to Source deals because of my presence. Um, and it's a win-win right? And then Nick is able to facilitate with those deals. Uh, and makes this magic happen.

So whoever it is that you end up partnering up with, if you guys are both you know real estate agents, what's the partnership in that right? Someone has to be the money guy. Someone has to be the Hands-On guy. And that's in my opinion, how you can really compliment one another. I Don't know if that means anything to you, but I Really hope that you never hold yourself back because you think that you don't have the funds to do it.

The funds again. I'm telling you this: the funds are literally like, probably one of the least important parts finding the deal. If you find a deal, I mean I will buy the property for you. It's that simple.

If the numbers make sense, the money is not going to be the issue. I Can reassure you that I Think you'd be quite surprised if you do actually end up finding a deal from friends, family, or you're just an absolute monster when it comes down to finding deals. This might be an Avenue that you might want to pursue. and again I Hope that you can take me into consideration as a potential cash buyer, especially if you have a property in Arizona but 362 000 sale price was 470.

As you can see here, this estimate says 473 I Guess we could have asked a little bit more, but we actually listed the property just to disclose that offer. 450 000 We received multiple cash multiple offers above ask and we ended up settling for this uh 470 000 offer. total profit: 107 000 um 76 days, average profit per day, fourteen hundred dollars and uh, 1408. Uh, the thing that I love about this is this is our biggest profit percentage-wise ever.

We have had our Paradise Valley House flip and that thing did more profit but it was. It was a 3.3 million dollar house so that doesn't really count. Uh, this property being purchased at 288 Renovations at 65 000. The thing I love about this, it's it's six figures in profit in a little bit over two months, two and a half months.

And in my opinion I think this is a property that can really shed some light I mean imagine. You know we all talk about volume, but imagine just doing one of these one of these a year or one of these even every two years, right? Everyone talks about volume, everyone talks about like wanting to do huge numbers. and I think that's great. It's great to have you know I hope that I can be that motivation for you.

But what I want to remind you is we all start with nothing, knowing nothing and not making anything from it. So to be able to have made 107 000 so that was one individual um to me, like that could be life-changing money. For someone that's just getting started right? ask yourself for 107 000 which again, this is our biggest and we've been doing this for um, a little bit over three years and this is our biggest percentage wise. I'm not going to say that this is something that we normally make I mean on average it's around 30 to 40K profit.

Uh, there's a lot of money to have out, but again, I I Want you to know that there you know you can get a hard money loan where you can partner up with someone that can take on that expense. Um, it's it's possible. Right But the biggest thing is finding that deal I Want to offer you this if you're in Arizona and you know anyone interested in actually selling their property to a cash buyer. and if you Source it to me, I'll do one of two things.

I can either include you in the flip and I'll offer you a rep split. meaning whatever it is that we make I'll give you a percentage of that. we can negotiate it. send me a message on Instagram or if you don't want to deal with that, but you're just like I just want a couple thousand dollars as a finder's fee.

I'll do that too. whatever it is that you want if you want to learn and Shadow Nick right to gain experience because this is something that you want to do on your own. Let's get you paid and we'll include it as a partner. you don't have to put one dollar.

The biggest thing I'm not going to sugarcoat it is finding that deal. So again, if you do, if you do end up finding that deal I Believe it's the third link in the description down below. Send me a direct message via Instagram and I would love to you know, partner up with you on our next house flip. So I Really do appreciate you guys time.

I Hope that you guys enjoyed this video. If you guys would like to see more videos like this, please make sure that you guys drop a thumbs up. And also don't forget to follow myself and my business partner. Nick Paladino on Instagram and again that is all.

Linked In The description down below. If you guys don't have Instagram but want to send me a direct message via Discord that is the first link in the description down below and friendly reminder: I Do trade live every single morning at Market open and if you want to watch me trade live as soon as as the Market opens next which is going to be this Monday the link is going to be down below and that's that second link down below for our biggest discount. Appreciate your time Like always, let's make sure that we end the year. I'm gonna read now.

Take it easy team.