All Forum Posts by: Jamie McCauley

We found the deal from a wholesaler in our area. Not just a wannabe wholesaler, but a legit one who has accurate ARV's(he was under by $1000 :)). I knew it was in a family-friendly middle-class neighborhood, so the resale would be easy.

For my repair estimates, I did estimates based off of previous renos i've done in the past on my own(personal) homes. For example: In the bathroom, instead of writing out every line item, I estimated a max of 3k because we've done gut jobs for under that. Nothing in the project was stuff I haven't seen before, so I had a pretty good idea.

Funding was a combination of cash and a HELOC I had on a rental property. This kept the reno/holding costs low by avoiding mortgage fees.

Here's a number breakdown:

Purchase Price: $144,000
Renovation Budget: $17,000 ($2,000 OVER)
Total: $161,000

Sales Price: $211,000
Net Profit(After Closing Costs): $33,000

Nice work. So much for the dogma of the Biggerpockets 70% flip rule. If you followed that, you would have never bought this deal.

I think the max purchase price = ARV - fixed costs - rehab costs - profit is a much better model.

Thanks! Numbers were a little tighter than I would have hoped, but to me it was a deal worth doing. I was looking for something instead of sitting on the sidelines.

0 Votes

Originally posted by @Nick Miles:

@Jamie McCauley great job! What was the biggest surprise on this first flip?

Thanks Nick! The biggest surprise was definitely how long it took. I was expecting it to take 2 months and it took 3.5!

0 Votes

Originally posted by @Shirley Roberson:

@Jamie McCauley Congrats!! Awesome job! Would like to do the same thing myself. What lender did you use for the HELOC?

Thanks Shirley! We used a local bank(west Michigan) called Highpoint Community Bank. It was important to us to find a lender who would lend on rental properties. I know that Huntington Bank will do this as well.

0 Votes

Originally posted by @Jerry Lucker:

@Jamie McCauley

Congratulations! Feels great doesn’t it! I only made $20K on my first flip, not bad considering it was a mobile home in a park and I only had $17K total invested :)

Thanks Jerry! It does feel great. That flip sounds like a slam dunk!

0 Votes

Originally posted by @Jacob Jacob:

@Jamie McCauley congrats on your first fix and flip deal. Each project is unique and therefore has unique challenges and outcomes. I'm glad to hear you had a positive return! That speaks tremendously about your acquisitions, due diligence, construction project management, and sales strategy. Keep it up!

Thanks for the encouragement Jacob! I really appreciate it. I have definitely gained some confidence from this flip moving forward.

0 Votes

Originally posted by @Jaafar Mirlohi:

@Jamie McCauley congratulations on your first flip!

Thanks Jaafar!

0 Votes

Originally posted by @Nathaniel Hovsepian:

@Jamie McCauley that is exactly what I am talking about, and exactly why I suggested it. You wouldn't have netted that entire $8k, due to whatever ad budget you had set up, but you would have gotten more than you ended up with. On top of that, you would have more leads that you could work in the meantime while the flip was ongoing.

Forget cold calling, DMM, bandit signs (suckers!), the way to find deals now and going forward is through online advertising. Sellers find you, instead of the other way around.

Awesome! Thanks! Can I ask what platform you found most effective? Facebook? Google? Etc?

0 Votes

Originally posted by @Pablo Davidov:

Loved the video @Jamie McCauley. Just subscribed to your YouTube channel. Looking forward to more awesome content.

Thanks Pablo! I really appreciate it! It has been a fun creative outlet for me

0 Votes

Originally posted by @Michele Z.:

Originally posted by @Jamie McCauley:

Yes doing a lot of the work ourselves is how we keep the numbers down. Saved us money, but cost us a little bit of our sanity! I'm hoping if we keep doing these in the future to start building a team of people to help. We also spent time shopping around for cheaper materials, which saved us money.

If you don't midn sharing, I'd love to know where you sourced those bathroom mirrors. DM is fine too. ;) I hope to be starting our own rental reno soon, and hadn't thought about new mirrors, but yours really helped pull that room together. Did you do some kind of extra coating on the butcher block to make it more able to withstand bathroom levels of standing water?

Bathroom mirrors were just from Target. $50 a piece I think. The butcher block was sealed with butcher block oil and will need to be reapplied periodically be the new owner.

Best of luck!

0 Votes

Originally posted by @Nathaniel Hovsepian:

@Jamie McCauley it seems like you have a good little thing going, but have you thought about using some of those profits to start your own marketing instead of using a wholesaler?

If you want to accelerate your growth, the best way to do so is to start finding the deals yourself, and I use finding very loosely. With PPC, the deals find you. I have been doing this for the past three months now, and have generated five different deals, with about 12 more that I feel I can close over the next 3 to 6 months.

By PPC, do you mean "Pay per click"? As in online marketing? Interesting concept. I tried cold calling lists to find deals but found it exhausting and not really something I was good at. If I would have found this flip deal myself it would have been an extra 8k in my pocket.

1 Vote

All Forum Posts by: Jamie McCauley

Jamie McCauley has started 3 posts and replied 56 times.

Post: Just finished my first flip! $30k profit!

Post: Just finished my first flip! $30k profit!

Post: Just finished my first flip! $30k profit!

Post: Just finished my first flip! $30k profit!

Post: Just finished my first flip! $30k profit!

Post: Just finished my first flip! $30k profit!

Post: Just finished my first flip! $30k profit!

Post: Just finished my first flip! $30k profit!

Post: Just finished my first flip! $30k profit!

Post: Just finished my first flip! $30k profit!