Turnkey Flipping!! 16k to 26k Profit to you!

[Andrew Cordle]

Hey everyone, 

I have a new house see the picture below...

I am doing a Turnkey Flip on this house. It works like this:

1. We find and locate the house

2. We create rehab budget

3. You buy the house and own the house this is not a JV or loan.

4. You pay us 3k upon closing to manage the construction process.

5. You pay construction straight to the contractor as we approve the invoices and work is complete. (No money is given to us)

6. Once construction is complete we are paid the final 3k for management of flip.

7. We list the house and sell it for 3%

8. When house close you receive all profit.

This is what we call a Turnkey Flip. We only do 2 of these a month with out of state investors. A little about us we have done over a 300 flips and or new construction houses. We have about 12 projects going on right now and we are very experienced. Please let me know if you have any interest. 

Here are the numbers..

ARV- 120k to 130k

Purchase 52k

Rehab 35k

Our fee 6k

Closing Cost 12k (10%)

Your Profit 16k to 26k

Timeframe 4 to 5 months

If you would like to see proof of any of our work please visit www.andrewcordle.com/flips there are at least 50 of our flips on that page. This is not a deal where we teach any investing or how to flip this is for passive investors only. 

Andrew

[Mark Ferguson]

It makes no sense for a company to offer a turnkey flip if the profits were really that high. Why in the world would you give up 16k to 26k of the profits when you are still managing the construction and doing all the work? The only reason it makes sense is of the costs are not really what is portrayed.  You see that with the numbers. 

ARV- 120k to 130k

Purchase 52k

Rehab 35k

Our fee 6k

Closing Cost 12k (10%)

Your Profit 16k to 26k

Timeframe 4 to 5 months

Actual costs

52,000 purchase

35,000 rehab

6,000 fee

12,000 closing costs

2500 carrying costs (maintenance, insurance, taxes etc) 

5,000 miscellaneous costs

112,500 total

This assumes no financing costs or buying costs (title insurance, closing fee etc.) Are buyers taking possession with a quit claim deed? Does seller pay all closing costs including closing fee, recording fees, etc?

You are also suggesting buyers use a credit car to pay for repairs. That's another $3,000 in interest right there. 

You said high ARV is $130k with basement finish, what will that run? In my experience a flip always costs more than you think to repair. Is that $35,000 guaranteed in anyway?

Real potential profit looks to be about $10,000 in the best base scenario assuming it is an all cash deal. 

Basically the seller is taking a guaranteed $10,000 + profit plus whatever they made on the purchase and sale, shifting all the risk to the buyer for a possible 10k profit. 

The biggest problem I see is why do you have to advertise these deals to out of state buyers? If they are this good of a deal you should be able to sell them to local investors all day long.