I just wanted to share my experience with my first official flip. Before we get into the numbers let me give you a very brief story about how I got to where I am today. I have officially named myself the dumbest real estate investor you have ever talked to because back in 2010 after years of thinking about getting involved in REI I convinced my wife that we should buy a 4 plex because it seemed like a great time to jump in. How does that make me dumb you ask? Because after buying it, rehabbing it, and holding it for 3 years I decided to take an amazing cash flowing property and sell it! Not only did I sell it but I did not continue to invest in real estate until this year. So during the greatest time to invest in real estates history this guy sat out and missed a HUGE opportunity! I bought a labor intensive business instead and now here we are in 2020 and although I've been successful in the path I chose I greatly regret not taking the time to understand what I was doing. I just had to share this first so that if I can help any first timers or people thinking about getting started PLEASE don't be afraid to reach out! I would love to save someone from missing out on the opportunity that REI provides. While working out in the AZ extreme heat I realized I had made a mistake. For the past 3 years I have become obsessed with finding my path back into real estate. Although as I type this I still own my other business I have made big strides to getting back to my true passion REI. This recent flip was my desperate attempt at taking massive action. Enough about the past lets dive into it!

I started networking and made a connection with a "wholesaler". That's in quotes because I've learned a lot about wholesaling in the past 6 months. ( They are not all equal ). Anyway I found this property through this wholesaler whom I still have a relationship with so please don't think I'm bashing him. I met him and my contractor (friend) at the property and while other investors were viewing at the same time I was the first to sign on the line so I just bought a property! Here's a breakdown of my initial forecasted numbers for the flip...

ESTIMATES

* Purchase Price - $202,313 including closing costs

* Estimated Rehab Costs - $31,800 according to my contractor

* Holding Costs - $1,000 ($500/mo for 2 months) TOTAL GUESS

* Sales Costs - $14,705 Agent fees and closing costs

* All In - $249,818

* Estimated ARV - $281,500

* Estimated Profit - $31,682

ACTUAL

* Purchase Price - $202,313 Including Closing Costs

* Rehab Costs - $37,050

* Holding Costs - $2,430 (Rehab took 5 months)

* Sales Costs - $19,334 Agent Fees and Closing Costs

* All In - $261,127

* Sold For - $283,000

* Profit - $21,873

Some might look at these numbers and not find the very sexy. Some might say the risk was not worth the reward. Some might sit out and wait for a better time to jump in. Remember that I've been sitting and waiting for years and it's cost me a ton of both money and years of experience. PLEASE UNDERSTAND I'M NOT SUGGESTING YOU JUMP IN BLIND! I was in analysis paralysis for the past few years and have read many books, listened to hundreds of podcasts and for me the time to jump in was now. Obviously by looking at the numbers above anyone can see it didn't go perfect. I didn't hit my numbers perfectly. SO WHAT!!! I took massive action and learned a ton while still earning a profit. I will do better and I will continue to not be perfect. The point is this time I will continue!