So i want to talk about the perfect house flip for absolute beginners. What's going on team, it's ricky with tackle solutions. I have nick paladino here and i actually want to talk about the flip that we're in right. Now i want nick to talk about the numbers and why this is absolutely not only insane margins, but if anything, really the ideal flip that any absolute beginner flipper should be looking for yeah.

So this property, we picked up uh january 10th. It is now mid-february and we locked this house up from our wholesalers for a hundred and seven thousand dollars. We ended up closing cash to close at one hundred and eight thousand five hundred dollars, which by far is the lowest price project we have ever taken on by a long shot, and i think that's why we can it's such an entry-level flip in a sense because It wasn't a complete tear down. No fire damage, no structure damage.

It was just a lower priced house with a lot of margin in it. So we got this um from wholesalers like i said they actually locked it up for 102 000 and they ended up making five thousand dollars for simply just assigning the contract to us, no money up front for them, no risk for them at all, no renovations for Them they just passed on us, we did the work and we partnered up well with them, so we ended up putting in ten thousand five hundred dollars on this property. Keep in mind it's a 560 square foot, two room, condo in surprise arizona. So ten thousand five hundred dollars stretched us a long way and we ended up listing it 160 000 and accepting an offer at 165 000.

So we're all in 120 000 and we're selling it for 165 000 with just about seven thousand dollars in closing costs, which puts our potential profit margin here at just over thirty five thousand dollars. So the reason that i think that this project is absolutely insane is think about that cash on cash return. One of the things that a lot of beginner flippers always ask us, is you know, what's the criteria for a flip, we always try to aim for a ten percent cash on cash return, meaning that if i invest a hundred thousand dollars, i at least want to Be able to walk away with a net after all expenses and all fees, ten thousand dollars profit that nick and myself get to take home. If you do some quick, math being able to walk away with thirty five thousand dollars, you can imagine that our margin is over 30 net after all, expenses and fees as well.

So why is this the most ideal flip for an absolute beginner? And how could you have actually taken advantage of this opportunity? I want to break it all down for you and again, if you learn something new make sure you smash that like button, so the first thing that i want to talk about is the price point. The same thing that we experienced the first time that we ever flipped a project we live in gilbert arizona back then we were taking on flipping houses as a hobby, gilbert arizona. The median, i would say, price for a house, was around 400 000, maybe 350 to 450.. With that being said, that's kind of a steep price for a house.

Maybe if you don't live, maybe if you live in california or in new york you're, like that's cake work, but for us in arizona, that's still a lot of money. I was paying for these properties out of pocket, so we're like okay, a property was presented to us in peoria. This was around the 200 000 price point much more attractive right, the same thing with this specific property, it's much lower than the median price point. Maybe in your specific area, which is why again yeah it's about 50 minutes away from where we live, but you have to understand you need to start somewhere and if you can kind of manage and mitigate your risk with a lower price point, then it's something that You will then have to do just to put yourself in a better position.

The second thing that i want to talk about and nick brought it up is this was a kind of like lipstick type of remodel. There was no fire damage, nothing crazy. We didn't have to remove walls. We literally paint some updates when it comes down to again making it a little bit more modern, ten thousand dollars.

Think about that. Ten thousand five hundred is what went into this project. If you are an absolute beginner, it's most likely understood that you don't have a bunch of contractors under your belt. If you even wanted to do the work yourself, this would be something that would actually be much more manageable right.

So again, the renovation and the work that you take on by this flip again being a very my new and what it's called a lipstick approach with the type of remodel. I feel like is ideal for a beginner, making sure that you don't put too much of a heavy workload on yourself, especially if you kind of lack the experience, and the last thing that i want to talk about is you might be saying: well, yeah, a hundred Thousand dollars is pretty cheap, but we paid for it cash right. I understand that not everyone has a hundred and ten thousand dollars cash very well understood, but take nick and myself as an example. What, if we didn't, have the hundred and ten thousand dollars? We still understood what this property could be worth and we still understood what we were getting it for the margins.

Were there, the renovation taking that into consideration was around ten to fifteen thousand dollars is what we expected. We understood that we knew the margin was there, so, instead of us funding it, something that you guys should be aware of is a hard money loan, and this is where an institution can lend you at a higher interest rate, meaning that you don't have to put Up and the entire dollars, so the example that i can give you is: let's work with perfect numbers, a hundred thousand dollars. This institution will most likely ask you to put two points down, which is twenty percent. So that's twenty thousand dollars.

Yes, that's still some money, but that's ten thousand dollars each meaning that we're only out ten thousand dollars each. We now purchase this property and that when it comes down to the remodel, we each put about five thousand two hundred and fifty dollars, and then we take home each about seventeen thousand five hundred. Think about that investing a total of about fifteen thousand and walking away with a total of seventeen thousand five hundred each for a total of thirty five thousand dollars. Profit, something you do have to take into consideration.

Is these hard money loans do ask for not only the 20 down payment but again monthly interest payments uh? But if you do some quick, quick math at that 10 percent, a thousand dollar payment is not too bad right or that would actually be 800 if they only lend out 80 000, it's not un, unreasonable or unmanageable. It's something that can be actually done right. You don't always have to have the cash on hand. Obviously, it's great to have partners that you can come and make cash offers with, but i don't ever want you to think that when it comes down to flipping properties that you need the money, even if you don't want to go with a hard money lender, let's Say that on your first flip, you want to work with people that are experienced right and you want to shadow them.

How can you get started? I don't know if you guys know this, but about 50 of the house slips that we are currently doing are sourced to people that follow us on youtube and on instagram, and we pay for everything out of pocket. You might be asking well, how do i get paid, or how do i make money as long as the numbers make sense for both parties we've paid up to ten percent of our net profits? So if we make a hundred thousand dollars net, you walk away with ten thousand dollars, profit. Think about that! All you did was you sourced a deal? You sent us the seller's phone number and we locked it up. You get to shadow us, you get to learn and everything that you learn from there you can take on to your next project.

We would love the opportunity to work with you so again, if you've ever wanted to get into flipping real estate wanted to become an agent we're always looking to connect with like-minded individuals and again my instagram and nick's instagram is going to be down below. I encourage you, we respond to all direct messages within 24 hours, send nick a direct message right now, so we really do appreciate you guys time. Is there anything else that you wanted to say yeah i mean today alone we were able to pass off one of our investments to an investor who followed us, and now he has a great airbnb in scottsdale arizona. The project that we are standing in right now was actually presented to us from wholesalers who found us on social media.

We are writing an offer right now, this very moment through another agent who was sent to us via email from social media and then we're also locked up a contract today for a condo in scottsdale for from someone that reached out to us uh about last night. Actually and we locked up a contract with him, he's working with us on this project, 10 rev split for simply putting us in touch with the listing agent on this property, so just today alone, four different examples of how you guys can work with us, or vice Versa, so we're definitely trying to expand that way and there's so many different avenues. We can all take and work together on and just kind of dominate the the real estate market. I would say definitely and again one of our biggest takeaways is we don't care if you're an active, real estate agent, we don't care if you're an up-and-coming or new real estate agent.

We literally want to work with everyone, so, even if you just want to connect, if you're in the mortgage industry, if you're a lender, if you're an agent, if you're looking to buy your first property, just send us a message. Let's connect and we love the opportunity to work with you on a closer basis. We had all our information for our instagram and social medias are down in the description. We appreciate you guys time.

I hope this inspired you to get started. If it did, please consider dropping a thumbs up and, of course, subscribing like always. Let's make sure that we end the year on a green now, take it easy team.