All right, so i want to break down one of our scott still flips. So, what's going on guys, my name is ricky, and this is a complete breakdown on how we found this massive house at a deal, how we funded it. Everything with expenses that went into it and then how we went ahead and turned it around for a net return of a little bit over a hundred thousand dollars. Um i'm going to break down everything.

I really hope that you learned something new. If you do, please consider dropping a thumbs up and, of course, subscribing. If you have any questions that you would like me to answer. Please just comment them down below or reach out to my business partner nick and you can simply message him on instagram and that is that first link down below uh one of the things that you guys will notice is you know i have 10 house flips going On right now - and those are with nick nick is my main business partner, but one of the things that i've done in the past is, i have funded a series of different deals uh, especially for this guy colby colby uh.

Also, you know he deserves it, uh. He earned it uh. He is so just motivated. He's super young he's located in the arizona area.

I'm gon na put his info down below uh. He also has about nine flips going on um and at the end of the day, i just love working with people that are not only super motivated, not only super talented um, but just good people to be around it. It just puts it into perspective. For me like what's possible - and this guy is like three four years younger than me, so it's amazing to see so uh, please uh.

All credit for this flip is really just to him. I just came in with the money uh and i funded uh part of the deal so uh this house uh. Just so you guys can kind of get the timeline. I posted it on my instagram um we sold on it uh we sold it.

The reason i didn't make a video when i first purchased it or when we first funded. It was because my previous house flip that in paradise valley that sold for 3.3 million when they get to be this expensive, the buyers are very um. I just i want to be more uh considerate to the buyers and i don't want to rub anyone the wrong way right. So i waited until we actually closed on the property and i want to break down everything.

So we bought this property back in july. Uh 14th, and i can show you the overall breakdown you can see it right on here, uh january or july 14th sold for 1.295 million uh. A question you might have is ricky. How did you find this deal right? How did colby find this deal? This is not how we normally and traditionally find deals right just so you have a complete understanding.

How do people normally find deals? Uh? Traditionally people go on zillow or if you have a real estate agent, they go on the mls and whatever's posted for sale publicly. You know you it there's everyone everyone's looking at that kind of just like this listing, so this listing in scottsdale arizona was posted for 1.395 million. It was posted for that. You guys can see right here.

This was july 1st. There are so many people that sometimes post their listing for below of what it's worth. Sometimes it's just an unexperienced real estate agent, maybe an inexperienced um. What's it called uh seller, or maybe they just really want to get rid of it? Like an example i want to give, you is like why you know a more re.

Relatable thing is like: why would anyone post a car for sale, that's well below market value? Maybe they just don't care for the money right? Maybe they have that type of fu money and they're just like i just want to get rid of it right, it's more convenient for them to get a cash buyer and that's what we came in with cash. But let me explain to you: did i pay 1.295 million for this cash? No. I've only taken two hard money loans out once for the paradise valley, flip that we purchased for 2.3 million and the second for this one most of my house flips. Just so you understand where i'm coming from are not in the millions of dollars.

I focus where most of the entry-level properties are at. I'm not here to pretend to be someone that that flips lavish real estate. Most of my house, flips are in the three four five hundred thousand dollar range. The ten flips that we have going on right now are are all around if i'm not mistaken, under six hundred thousand.

That's where my you know: uh my business partner and myself. That's where our bread and butter is that's where we really like to focus on, and the numbers simply made sense on this one. So what i wanted to break down is this: one was posted for about 218 a square foot colby broke it down. He um.

You know was able to get the deal under contract, so he was able to agree um or get the seller to agree to sell it for 1.295 million and he either needed to find the funding some way right, because his intention was to resell and then that's When he came to me so what we ended up doing and again, i want to break down everything for you. Our all-in purchase price was 1.307. Let me explain that we bought it for 1.295 million, but there's title fees and all of that and when it comes down to flipping a property uh, we sometimes it's in our benefit to leave it with an open title uh, something that, if you're into flipping real Estate, something you'll get into the title: company takes care of it, so our total all-in expenses um is 1.3 million three hundred and twenty two dollars i wanted to break down. So what were our expenses like? Did i renovate this property? Anything like that? No, nothing of that was this was one of my first flips ever that nothing was actually done other than landscaping.

So i put expenses here, expenses, fifty eight thousand dollars, but if we didn't renovate it, what did we do again? This house is sixty four thousand uh. Sixty four hundred square feet staging so again, i wanted to show you some of the pictures, so these pictures you're gon na see that when the property is, you know uh, when we have the open houses, uh or the open house where people can come and see It and or these series of pictures it would look. It would be very difficult to sell this property not impossible, but very difficult. If there was no furniture, this furniture simply allowed it to allowed us to really give it character where people can come on in and kind of see themselves living there.

So we paid a company to furnish this to stage it and that that's where it comes from. So again, the only expense that we incurred on this flip is we didn't renovate it. We just staged it right and it at even at 6, 400 square feet. It's absolutely insane.

It's a huge lot um and you guys can see the staging was 6 356 dollars. A series of things that were purchased through amazon, 10 and 62 cents landscaping uh glass repair again it all. It's all broken down: uh the binzer 4740 uh windows being cleaned 500, uh professional photos. Again, these uh the photographer to come out there, take the photos and then edit them for us, so we can properly list it.

That's 400, another landscaping, 300 utilities right! That's where the srp and the wall payment comes in another landscape, three hundred dollars. When you see this capital fund payment september - second, all of that these are the series of payments that we were doing for our hard money lender. So i'm going to explain that in just a little bit, so you can see eight thousand five hundred eight thousand five. Eight thousand 8500, 8500 other than that the only other payments are srp, which is again a series of utilities right.

So if i'm not mistaken, that was um, yeah, srp, srp, srp, srp, srp wall payment and then insurance extension up to february. That was 462. Everything broken down. I just wanted you guys to understand.

I didn't just want to be like oh yeah, 58 000 of expenses, and you guys be like what the heck does, that even mean 58 000. This is the complete breakdown. That's all that went into the property. So, for those that are not familiar, i know, if you guys are.

You know, uh house flippers yourself, you're, aware of what a hard money lender is for those that do not know what a hard money lender is. Is i normally am a hard money, lender uh or was a hard money lender for people that were trying to flip properties at three or four hundred thousand dollars, meaning that i lend out money at a higher interest rate anywhere from nine to twelve percent? You know um yearly and with this fund that we got a hard money loan from we had to put 20 down, so we bought the property for 1.295 million. That means that i had to put about 260 000 down to build 20 equity and they will fund the rest, but at the interest rate, this is where it gets broken down. I am paying of just interest 8 dollars, eight thousand five hundred every single month.

So you can see that i mean that does eat up quite a bit of our margin every single month, so we're almost on a time crunch, because we only have so much time until the 8500 will eat up all of our margin. Do you get what i mean, so you always have to take that into consideration. Is that if you do take out a hard money, if you do put that down payment, you also need to take into consideration your timeline. How much time do you have for the net proceeds to still be worth it right? So i wanted you guys to understand how we paid for the property and what we needed to put down 20 and then what our fees were.

8. 500, every single month, uh for a total of uh 58 000, including all the expenses there, our closing costs 63 000. So one of the things that we offered is to make it more attractive to the buyer. We offered a higher commission, so three percent.

That normally happens for any property in the millions of dollars. Uh 3 2.5 is pretty standard. Three percent is a little bit more attractive. Uh, trying to you know, make the deal happen, uh and then commission so commission, at three percent for the buyer's agent we paid half of a percent for our representation, my i'm sorry and then title fees, um and all of that stuff.

So that came out to be a total of 63 000, so our sale price that we agreed on was 1.535 million. That means that, after everything, right so 1.3 million our expenses at 58, 000, another expense of closing cost and commission at 63 000 for the sale price of 1.35 uh, 1.535 million, our net proceeds after nearly seven months was a total of a hundred and five thousand. This breaks down to a monthly return of about fifteen thousand dollars every single month or a daily return of five hundred and three dollars. I had to have a total of about 275 000 invested.

We had to make these monthly payments to the hard money lender and as well as incur all of the expenses. So taking this into consideration for the past, you know six to seven months, we were almost paying about. You know eight or nine thousand dollars. On average, nine thousand nine thousand two hundred on average every single month just to maintain this property, so uh very happy with how it played out, but it was not a perfect sell.

We could see that we originally posted. So as soon as we acquired the property. We cleaned it up with the landscaping. We got the cleaners to go there, we got the stagers right and then we got the photographer that was kind of the process.

They took the photos, everything was up and ready. We posted the property for 1.75, 1.749 million right. So it went from 202 dollars a square foot now to 273, which was a little bit more realistic in that area. We dropped it to 1.699, we dropped it to 1.599 and then our final price change at 1.55, and then we ended up closing at the 1.535.

For a total of 240 square foot, so what i wanted to break down on this property is most of my properties are not like this uh. First off they're, not this expensive. We don't normally have hard money lenders. We normally do renovate the properties, that's where most of our expenses are uh.

You know where they take part, but the reason that i wanted to share this specific uh property with you guys is people always ask you know like hey. I want to flip my first property, but i don't know how to get in contact with wholesalers. Maybe i don't know how to source deals. This is to show that you know there are properties that are posted on zillow that are posted publicly.

That are good deals. Sometimes you just need to negotiate and not be afraid to negotiate, and that's one thing that i learned about this guy colby is not willing to not scared to make an offer. At the end of the day, a seller will sell the property for whatever it is that they're, okay with and as someone that is in the business to make money, you shouldn't be afraid to make an offer right. It comes down to a numbers game, and i think this is one of my biggest takeaways from this property and from this successful flip.

Is it just showcases that you know we love being able to work with wholesalers, which means that most likely off-market listings that are really good deals normally below market value? Those are great, but it's also very important to understand that there are golden nuggets that are posted publicly, sometimes posted for more than what they're actually willing to take, and sometimes it just takes an offer, and you can come in with a cash offer when you don't Need to put all the cash up, you can get a hard money lender if you're able to put 20 percent down - and you can actually make things happen right or the total dollar amount of after the 275 and then the other 60 thousand dollars that we pretty Much invested, you know if you break it down what does that come out to 335 000 with a 105 000 return, it's like a 30 return on our investment. It's not bad and all it took is someone's ability to make an offer understand the market understand what this property is worth based off of similar comps have the connections of the hard money lender? Have the connections of an investor make the offer facilitate the deal and then make it happen? And yes uh? One thing that i did also take away some mistakes that we made on this flip uh, something that i probably i'm not going to be the most eager to do. Is this one in scottsdale it's kind of like north east scottsdale, it's very far so, as you guys can tell from some of the pictures it's kind of like farmland, i don't know if i want to do flips over there. The demand is obviously not as great normally the listings that we have here in gilbert, mesa chandler will sell within the first 24 hours and above ask price.

This one took seven months, obviously not just because of the prize, but also because of the location. I'm not uh, i don't regret, obviously taking advantage of this deal. You know with the series of previous deals that i've done in the past year, there's been so many positive takeaways. Yes, we've been able to turn it around for a profit and that's always a great thing, but at the end of the day, we're here to always learn from our mistakes and there's always mistakes that are made on every single flip.

So i simply wanted to break down to you guys, a property that was posted originally on the mls, how how we were able to source the deal right on negotiate fund the deal with a hard money lender, put 20 percent down facilitate the deal no renovations. Just simply upkeep and staging, and then seven months later, nearly seven months later turned around for a profit of almost or a little bit over uh a hundred thousand dollars in that so um. I'm super excited for what this year is going to bring. I want to stay consistent.

I want to be proactive. One of the things that i need you guys to know is that about 30 to 40 of the deals that i'm flipping right now out of the 10 that i have right now were sourced through youtube or sourced through instagram. That means that people that follow me brought me the deal and i either paid them a finder's fee, a couple thousand dollars, or we partner up with you and do a rev, split and, and the reason i make these videos is first, i love sharing our process. I love sharing our successes and our mistakes, but i also need you guys to know that i don't have a fancy or crazy team right.

Yes, i've seen the previous flips that i've posted before it's. It's really just me and nick or nick, and i right we have the series of contractors that we work with so, if you're a real estate agent in arizona, if you're about to be a real estate in arizona, i want to connect with you if you're a Wholesaler in arizona i want to connect with you if you're an investor in arizona. I want to connect with you one of the things that i've learned so much in the past year are the connections and the relationships that i've been able to build from random people. Not people with the most following, but people that are just proactive, are the ones that are most valuable to us.

And are we not all here to make money right? So, if you're, really good at sourcing deals or you're, just a really good agent - and you want to connect with us because we're cash buyers - and we can be of value to you - is that not what it's all about those complementing partnerships where you can be of Value to us - and we can be of value to you. So if you guys have any questions, have any deals, if you're an agent, if you're about to be an agent, if you're a wholesaler if you're a lender, whoever it is that you are in the real estate niche and or if you're about to get into the Real estate age, we would love to connect with you literally you just have to do. One thing first, link down below is nick paladino's instagram. So nick is my direct business partner.

He oversees he's he oversees all of our deals. He facilitates everything i fund everything normally out of pocket. Most of our deals are anywhere from the three four five hundred thousand dollar range. We can obviously buy more expensive, but that's kind of our bread and butter, and he responds to all of his direct messages.

So please, if you guys, have any questions the first link down below. If you don't have an instagram, then maybe it's worth making one. We would love to connect with you. Follow nick send him a message and, let's connect, my instagram will also be down below and i'll also put colby's down below.

So i really hope that you guys enjoyed this video. If there's any more details that i can share with you, um, please just ask down below and if i can share it with you, then i'll then i'll respond. So i really do appreciate you guys time um. Thank you again for being so supportive and so encouraging, and i just wanted to reciprocate that uh being able to break this down, to showcase again our successes and our failures and to show you what is possible yeah, not with a crazy big company or anything like That just with two guys that are are trying to always learn more about the real estate market, especially in arizona so um, yeah i'll, see you later for our sunday stock talk, that's going to be at 6 30 p.m and, like always, let's make sure that we In the year on a green note, take it easy team.