Successful flip story!

[Leo Kwok]

I have been a fairly long time member but don't post or do too much here simply because I always have felt that it is much better to learn things "hands-on" rather than reading a book or listen to a podcast.... but in any case I wanted to share one of my little success stories in hopes of inspiring others!

A little bit about myself, I am 48 and am a full time RE investor mostly doing fix and flips and have some buy and holds in the Chicagoland area, this is my 5th year in it, have a total of 25 projects under me, have done everything from regular cosmetic to full gut rehab 3 unit MF buildings and SFH new 2nd level additions, only thing I have not been in is new construction…. Just wanted to share this recent success story that I just finished where if everything works out perfectly this can be the result! The white single level house on the top half of the picture is in Villa Park IL, I bought this on a wholesale deal on Nov 1, it is the epitome of if you buy a deal right you will never lose, and that is exactly the case in this one, minor mechanical updates and cosmetically update house with kitchen and master bath being the focal points…. Spent about a month to get permits situated and about 10 weeks construction time, when I bought we initially was thinking 380-390k sales price but when it came time to come on market I saw how there is no inventory of nicely rehab homes in there or the few other surrounding suburbs in the same price range so I decided to push the envelope and list at 425k!! Went on the market March 1, 4 days and 24 showings later I am under contract at 420k with wanting fast close by end of the month!! 

The numbers on this deal:

Purchase + lender fees 235k
Rehab 60k
Holding costs 10k
Estimated closing costs 25k
ALL IN COSTS 330k
Contract price 425k
NET PROFIT 90k

Not bad for 3 months of work splitting this kind of a profit with my investor on the deal!!

Not sure how the market has been going around the country but here in Chicagoland suburbs it’s very robust and I’m about to start a new one in Arlington Heights, and also just went under contract on a off market deal in Forest Park, hopefully getting similar results!  And yea the bottom half of that picture, just so happens to be another house on the south side of Chicago that went under contract same day at full ask also so that was indeed a good day!

I also have been real bad with being "social media active" but I promised myself this year I have to do it, so if you guys can do me a big favor and give me a follow on my IG I would greatly appreciate it!! I will be documenting the newest Forest Park off market deal that we just acquired which is essentially a full gut reno with architectural drawings required, so will be showing the process of that one from start to finish!

IG: @lechu_2018

Enjoy the pics and feel free to shoot any questions you have, I'll be glad to answer them as best I can!

[Leo Kwok]

Quote from @Jonathan Klemm:

Hey @Leo Kwok - Congrats on all your success brother!  This is very inspiring!  

The more you share the more you can help other people, so please don't stop.  We will definitely give you a follow on IG as well, some of your projects on there are awesome!

Your timeline and construction cost for a project like this are great!  Well done and super impressive.  I love the wine rack over the frig, great touch!

Do you ever do any projects in Chicago or mainly the suburbs?

hey @Jonathan Klemm thanks for the kind words its much appreciated!  I actually tried to reach out to you on FB about a month ago about airbnb in the city since I have heard you are the expert in that area, hopefully we can make some time to have a discussion about that in the near future!  I'm sure my message when to your spam or something so you probably never saw it lol

I have done city projects but they are just so horrible with inspections and everything else so I have shifted my focus completely to the suburbs only now and so far it has been much better, hopefully it continues that way! At this point I am only doing city projects if the spread is so crazy its worth my headaches to deal with it, which actually I do have one 2 unit full gut rehab I am about to get started on