All Forum Posts by: Alan Crookham

@J Scott awesome, I’m actually reading your book on flipping houses right now. I want to make sure I understand all of the expenses before I buy a place to flip. I appreciate the response.

Is this math right? I have been in rentals for a few years now, just two properties, and am looking to move into house flipping later this year when things calm down more. I’m looking at these numbers though, and do clippers lose 50%+ in earnings?

Capital Gains tax takes 20% off the top

Pennsylvania takes 3%

Self employment tax 15%

Real estate agent fees 6%

If I have a partner/investor that could be another 10%

If the average flip makes $25k (which is what I keep seeing and reading), it actually means you only go home with $10k for what seems to be at least 3 months of work.

Am I missing something? Or do I need to be looking at a market with higher margins, because in my small town in Central PA I am not likely to make more than $25k on a flip.

@Dan Bryskin thanks for the advice! Haha, I have actually been married for 14 years now, but my wife is Panamanian and from a small town there (I am from Texas myself), so her taste is very different from what the average North American is going to like.

@Scott Mac fantastic advice. Duly noted, thank you!

I feel very confident in my ability to find a solid deal, do all the comps and legwork involved. I have sales and management experience, so I know I can negotiate and handle a flip well. What I don’t have confidence in is the presentation aspect of flipping a home. The color scheme for the paint job, matching the lights with the faucets and all that good stuff. Because I am new at house flipping, I also can’t afford a designer to do this. What advice would you give, or what materials would you recommend for a mid-range, class B house. Do you use the same color schemes and materials for every flip, or change it for each house?

Thanks in advance!

@Jonathan Greene great advice, thanks for explaining. I’ll definitely be doing that!

@Kevin M Finley wow! That is awesome to know. That higher percentage is definitely worth the staging price!

@Stone Saathoff awesome, that helps. Thanks!

Just curious, do you generally fully state your flips with furniture and decorations, or just let the rehabbed house speak for itself?

@Alex Deacon I didn’t think to go back a few years, that is great advice! I really appreciate you taking the time to answer. This helps me out a lot!