So what is it like to buy a house and sell it for a profit? This video is just going to be a raw video where i'm going to talk about how we found the deal uh, all the numbers and everything i'm going to show you absolutely everything. I don't know if people do this on youtube, i'm not here to say that i'm the best right and or if my team's, the best, i'm just going to show you how we uh took an opportunity where we were presented an off-market deal. We bought it. We put money into it and we flipped it for profit, so this is for anyone that has ever wanted to get started.

I hope that you learned something new and if you do, please consider dropping a thumbs up and or subscribing to the channel. So let's go ahead and jump right to it, so i want to show you the house very quickly. This is a house that we picked up um, i want to say i think it was 56 days ago. I think the total uh time of this overall flip.

I came down to be anywhere from 58 days, yeah 58 days. So the really great thing about this is that asking that first question: how is it that we came across this off market deal? How do people buy deals off the market? Well, you can do it either through friends or family word of mouth and or you can work with wholesalers. What is a wholesaler feel free to google it to get the exact definition, but pretty much what a wholesaler does is they find deals, so they source deals? It's this entire team, uh, there's wholesalers everywhere in every state and all they do is they're not actually putting up any money, but they find the contract to sell and all they do is they reassign it um to another buyer right. So there's people like myself and there's people like you that are looking for deals, but maybe we're not the best at sourcing deals, so there's wholesalers that their entire business model is sourcing deals.

So as they find these deals, they have a list of investors and or buyers that will buy the deal for a little bit more than what they paid for. I want to show you an example of this again they're of value to us and we're of value to them. So, just like you guys right if you guys find any deals off market in arizona and you're like well, i don't have the money for it all that stuff. The money is the least important part.

The hardest part right now is sourcing the deals and i'm just being completely just open with you guys. If you ever find deals, don't worry about the money. My link is in the description, send me a message on instagram and i will pay for the house cash. If it's a deal, that's the biggest difference, so we bought this house off market for four hundred thousand dollars.

So four hundred nine nine zero - and you guys can look into this so uh asking the question: well, how much did this wholesaler get it for? If you look at zillow and you see what they actually sourced it for when we buy the property and we're you know actually closing on the property, we can then see what they actually bought it for up until that point, we have no idea what they bought. It for we just know that it's probably less than what we paid so very quickly. On august 31st, 2021. We can see that it's supposedly sold for 380 000.

This is what is reflected on zillow, but what is at what actually happened is if they got it for 380 000, then we paid hundred thousand dollars for it right. So it's a difference of twenty thousand dollars. That's in a sense what these whole sellers made and i think it was wholesaled twice so someone made sixteen someone made four. It was a very simple process and again that's the beauty behind behind wholesaling.

If you're looking for an avenue in real estate, where you don't want to have or need any capital and you're, just really good, with sourcing deals, look into wholesaling and make sure you reach out to us and send us all your deals, because i would like love To buy them from you, so we had a realistic arv which is after repaired value of this house, based off of the past three months, so they're called comps they're, just comparable houses based off of area square footage and, of course, location right. So it was about half a million dollars. I want to break down everything, so i just showed you right and explained to you the you know how it is that we sourced it. What i want you to see is what we bought for 400.

000. I want you to see the before and after and everything that went into it. I want you to understand absolutely everything, so we knew that this house was worth about half a million dollars. We got the deal for 400 000 right.

The whole sellers made their money. Now it's ours, i pay for these properties cash right, so my business partner is nick paladino. I'm gon na put his instagram uh down below my part in this partnership. Is i pay for everything cash? I do not work with hard money lenders.

I do not work with banks, i pay for everything out of pocket cash. This is easier for us, as we can leverage our cash at hand and not have to worry about anyone else. So this is why i'm saying if you find deals in arizona and you're, worried about not having the money and or you know, friends or family, that want to sell their house, and you want to make some money off of it right reach out to us. Tell me what it is that they want, and then we can negotiate from there.

It's as simple as that. If you know people if you're good at sourcing deals, don't worry about the money, that's where i can come in and we're super open to we've partnered up with people that have followed me on instagram that have followed me on youtube. Where not only can we? We can pay you a flat rate if you don't want to have any part of it. You're just like.

I just want to make a couple thousand dollars: uh, we can just pay you a finder's fee and or if you want to learn the process, if you're in arizona right - and you want to learn the process that ends in the out the the project management, then We can also put you in for a percentage. I am so open to anything. It's just. The biggest thing is sourcing deals, so i need you to know that.

So, if you know any deals, i hope you message me on instagram, so this is um. I'm going to show you a couple pictures of what we purchased for 400 000. So that's the kitchen uh, that's kind of like the living room space a little a little bit more details, obviously very outdated uh, and then this is the backyard right. I want to show you before i show you the before and after i want to show you what went into it the renovations again, i don't know if people on youtube or people online uh share all the numbers broken down.

I think that this could be useful for you to get a realistic understanding of what goes into a flip uh, and please comment down below your thoughts. If you guys, like these i'd love to make more, we flip about two to three properties a month uh. So the demolition so demo, meaning that uh again just ripping out either parts of the kitchen ripping out the carpet stuff like that. So overall demo work, two thousand dollars flooring, material, 2100, right foreign labor, actually installation that so amazon would buy a bunch of off.

You know the different appliances and or uh the little knickknacks, and you know the accents and stuff like that on amazon, uh handyman, total of 5600 electrician 1200, uh granite, slabs, 1500, actually pretty cheap appliances 1500. So we got all new appliances, paint and exterior 3200 staging for those that don't understand staging is when you pay a company to furnish your property for it, to look more homey for people to be able to see themselves and i'll, explain to you all right. It's either walking into an empty house. That's remodeled! Where there's you know you're just trying to picture yourself in there and or you can furnish the house.

So it looks more homey, so they can actually see themselves living there. It's an approach, and normally when a house is anywhere over four to five hundred thousand dollars, we like to stage a house, it makes more sense. The cheaper houses, maybe not right uh. So then, going all the way to home depot knows again the different parts that we bought there, backsplash uh bathroom granite counter, tops um baseboards bathrooms once again, 4 800 uh paint on the cabinets.

So again, just keeping this in cabinets, but just repainting them uh, garbage paint, backsplash, labor, landscaping, paint shower glass and you'll see this. We actually put a lot of money into one of the master bathrooms carpet: cleaners, ac repairs and trash total renovations right. We bought this house for 400 000 when it comes down to our purchase price and then the uh, the overall uh total to close uh there's like title fees and stuff like that it came out to be 406 000. So just be aware of that, and then we put in uh 49 000 into renovations, pretty much.

Fifty thousand dollars went into it. Now this comes down to holding costs. You need to understand this, so even if you're not actually uh flipping houses with us right, your holding costs might be a little bit different and it's all based off of. Are you paying for the house cash? Or do you have a hard money lender? The reason i'm sharing this with you is: i want this to be useful.

Even if you don't partner up with us holding costs, you could flip houses by having someone that lends you money, but normally there's going to be a holding cost for it's kind of just like the interest that you're paying to have this money. Obviously, we don't have any holding costs for hard money fees or, for you know, loan fees because we're paying for it cash and out of pocket. I need you to know that if you don't have that option, if you are paying for this through a hard money lender and or another lender, then you're going to have normally on average anywhere from 10 to 15 percent is what you are going to pay annualized. So if you borrowed half a million dollars within a year, if you're at 10, then you're gon na pay about 50 000 overall in holding costs, uh and or whatever it breaks down to per month right.

So you need to take that into consideration, as that eats up into your margins of net profits at the very end. So again, our holding cost was very simple: it was insurance as a you know: property insurance, water and trash electric and gas altogether. Very cheap. Seven hundred thousand dollars this for the period that we had it, because i think we held the property for a little bit under 60 days uh.

This would have been for a total of two months and on average let me do actually very quick, quick, math uh. So at half a million - let's say that your hard money lender i want to be as realistic as possible - is that 12, so at 12, you're paying 60 000 a year so divided by 365 you're paying 164 a day. So now we're going to do that times! 30, on average uh, that's about nearly oh i'll. Tell you exactly four thousand nine hundred and thirty one dollars a month and then, if we do that times, two obviously because that's a total of sixty days uh, it's nine thousand, eight hundred and sixty three dollars and one cent.

So you would have added that to your holding costs. So if you had a hard money lender at 12 for the let's say: half a million right, because you bought the property for 400 000. Let's say you borrowed a little bit more money, for you know renovations. If you didn't have any again, i don't know, i don't know what the interest rate is just i want you to understand that this doesn't always look so small, as in the 700 700 uh dollars in holding costs, because sometimes again, realistically other people have hard money Lenders and or they're not paying out of pocket right, so total expenses, 400 or 49 713 dollars holding cost 699 purchase price 406, total expenses, uh collectively right so including all of this uh, 456 000.

So what i want you to understand is we took this property that we bought for 400 000. We put 49 000 into it and withholding costs and we're in it now for 456 000. We turned this property into this. You guys ready all right before and the after, so this is a property that has been remodeled, so you guys can see that we did the pain uh.

We did uh the accent things doesn't like. You know the fan. We staged it carpet, uh. What is it? The baseboards, let's move on over to the next one - this is the exterior, so this is extra landscaping exterior paint.

Obviously we had to abide by the hoa so make sure that you're aware of that uh. This is the before and after of the landscaping in the back right. It went from something like this to something like this right moving on forward uh. This is now the living room, obviously just imagine walking into an empty house and or walking into a house.

That is staged right. You can at least see yourself living there right, so it at least appeals to people uh and again, when someone is trying to purchase a property, especially first-time home buyers. Uh, you want to make sure that you present your. You know property uh at the best possible way, uh for you to try to get.

You know the top dollar uh. So this is now the kitchen, so you get to the catch kitchen with the new granite top um, all the new appliances, all that stuff. So you guys can, let me know in the comment section what yes or how it is that you guys think that we did um. Oh, let me go ahead and go on back, but you can see uh the sink uh the backsplash, the cabinets, the accents when it comes down to the um uh.

What is it called the handles appliances? All of that right and then the staging right? The stools? All of this right for people to be able to see themselves, we did not include a refrigerator right, that's not something that we needed to include again the living room. This is, as you walk into the property, so we have a kind of formal, dining room overall entrance uh, and then this is the master bathroom so um. This is where i feel like. We really spent the majority of the money and it made a lot of sense.

We just went all out and we just wanted someone to absolutely fall in love with this house right, um and yeah. I mean this is uh where we've invested 49 000 into that property, so uh again we're in it for 456. We have a fully remodeled house and by that time, right um we're ready to list the property, the property is staged, and then this is where nick and i had a quick little conversation and nick had an amazing idea of like again. We expect to sell.

We expect it to realistically very conservatively sell the house for half a million dollars, we're in it for 456 000 if we sell it for half a million uh. Realistically, you know, there's a three percent or two and a half percent sellers commission right or buyers. Commission and then for us, uh nick's agreement to me is that he will list the property for one percent. So that's part of our partnership.

So in total, for about three and a half percent plus title fees is about four to four and a half percent and taking that into consideration selling it for half a million. That's about twenty thousand dollars in just commission and closing costs so we're in it. For 456, we sell it for a million now we're not 480 right, so there's really only a difference of what is that a little bit under 30 000. So nick came up with the idea of we want to see if we can get a bidding war.

Obviously, a lot of properties, especially in gilbert arizona, just like many different popular parts of the united states, are selling for above asking price. We wanted someone to fall in love with this property and make us their top offer to compete with other people and be able to leverage that against one another right. It's just we again we're not here to say that we're the best we're just getting started. We've been doing this for about two years.

We wanted to explore a different app. That's what i want you to understand out of that specific approach, we're not afraid to make mistakes, but we're also not afraid to try new things so going into that, i want you to understand that we posted it uh just so, you guys can see this very Quickly, we posted it for 499 500., we accepted an above asking price offer for 525 000. Twenty five thousand dollars above asking price boom, and this was about 48 hours after posting, the property for sale, right uh. When it came down to actually closing on the property.

We have to, we have to uh, i think, give a total of five thousand dollars in credit uh when it comes down to different things that they pointed out at the house. This happens from time to time and then with closing fees and everything right, our net take home from the 525 was 498 151 right, so a expense and total expense. So after commission and close right from 525, we went down to 498 151 right. So now that's net and we uh uh.

Our expenses were 456., so our net profits are 41 738 and our timeline was from start to finish right. I think it was august 31st to when we officially sold it. So you guys can see the date from the remodel from the purchase to the you know, remodel to the staging to the selling it to the close um. You guys can see that it's from august 31st to our cell date of um, i think we've yeah.

We officially closed on october 28th, so a total of 58 days 720 dollars a day. That is everything that led to our success on this house flip. That's it! I wanted to show you guys how we found the deal. I wanted to show you when it came down to the renovations, what went into it, what it cost.

So you can realistically understand that and of course i wanted to be realistic. We pay for our property as cash, so we don't have any hard money fees. Any lending fees right so, but if you take a different approach, i just want you to understand that if i would have had a hard money lender, i and even just 60 days, which is a very quick flip right from start to finish, uh. That alone would have been nearly 10 000, so my net profit would have been.

You know from 40 uh. What's it called from 41 000? Where is it at 41 000? It would have turned into you, know thirty, one thousand dollars and that's quite a bit right. So this is why i think it's super important for me to have shared everything, our approach, our intention, how it is that we do this and why it is that we do a certain. You know this certain um the way that we do what what it is that we do um.

I just completely chop that up but yeah. I just wanted to show you guys a raw breakdown of what it's like to flip a house and again not saying here that we're the best or anything like that. We have so much to learn uh, but we're just so fortunate to be in the position that we are uh we're just to think. Two years ago we started from flipping our first house in peoria, arizona, uh nick, and i right just for fun just because it was during the midst of the pandemic.

Um - and you know fast forward a couple of months and or you know a year and a half uh we're now flipping about two to three properties. Every month, we'd love to flip, more right, we'd love to take on more uh, but the biggest part is sourcing deals, which is why i'm also making this video - and i don't want to sugarcoat it is. I want to empower you and remind you that i don't want you to worry about the money if you're in arizona and you're sourcing deals, if you're good at finding off market deals and or market deals that are below asking price or below market value message me Or message nick, all of our informations are going to be in the description. Send us the deal, we'll we'll pay you a finders fee and or we'll flip the property with you.

I don't want you to worry about the money. I don't need you to worry about. The money, i need you to know how valuable you are, and people don't like to say this, because it gives too much power to the wholesalers or the people that find the deals. I don't care about that.

My focus right now is finding more deals. I need you to know that if you find deals, you are of value to me and i can be of value to you if you present them to me and i can pay you for them. I can pay you above what it is that you got out of a contract for and or we can flip the property together. I am open to so many different things.

You just need to find me deals so again. All my information is down in the description. Uh we flipped properties before with people that have followed me on instagram uh, with an 18 year old. You know student at asu that uh followed me on youtube uh, the the thing that we like to do is we like to be open to any opportunity, and i hope that that can be something that's mutually respected on both sides right so again, i hope that We earned you a thumbs up.

I hope that you learned something new, please consider subscribing thank you again for 1 million subscribers um and, like always, let's make sure that we in the year on agree now take it easy.