$100 to $1 Million asap

[Joseph Michaels]

Hello, first post on BP...

A little of my back story... I have been in the building trades for the last 15 years and Im quite good at what I do. I also have played poker for some side income for about the same amount of time. About 3 years ago I played a 100 dollar poker tournament that won me a seat into a 365 dollar tournament. I ended up getting second place for 70k.

So the next day I was looking on Craigslist and stumbled across a super property for 80k. 2500 sf farm house on 9 acres, 5 year old foundation, but a total dump inside but tons of potential and character. Ended up buying it with cash and closed a week later, it was my first real flip. I had just previously sold my house and I was living at my girls condo at the time so I was able to claim as homestead and was pulling in good money as an electrician so i decided to take my time with it and basically rehabbed it all myself over 2 years and avoided capital gains taxes.

I put 60k into it and sold it for 280 just after the 2 year point. I have since quit my electrical career started my own GC company. I use that company to do work for other people as well as work on my flips.

I'm only doing one flip at a time, paying cash, paying myself my hourly thru my GC company when house sells and putting the rest away to invest. Was planning on doing just doing flips, and multiple flips at once but I go thru workers like I do hair cuts, so i end up doing most all the skilled labor roles myself and contractors are very pricey in the area so that option isnt the greatest, so I recently came up with the idea stated below instead.

I have zero debt, and minimal monthly bills. I have about a 1/4 mil to invest with and want to build my portfolio steadily and efficiently and here is what I came up with...see any major flaws or adjustments In this theory?

Example. I buy a fixer upper for 40k cash with my rental company. Use my GC company to do the work which cost an additional 30k cash (paying myself an hourly) . All in for 70k. Fixed value is 100k.

Next find a tenant, and then take a hard money mortgage or standard mortgage on it for 80% of fixed value (80k) and add the difference of 10k ( 80k loan - 70k all in) to my 1/4 mil investment pool.

Then wash, rinse and repeat as many times as I possibly can.

With this theory, If I make sure my all in price after rehab is capped at 80% of fixed value, then I won't have to deplete that 1/4 mil, ill have 20% equity in each house, I'll be getting cash on cash returns to which ill add to the investment monies, and making enough off the GC company to pay my regular bills and what not. Seems pretty solid right?

Any advice is greatly appreciated

Thanks

Joe