Angela Makes 27k First Flip Profit as a Side Business in Detroit

Speaker 1: 0:01

You're listening to the Flip Houses Like a Girl podcast, where we educate, empower and celebrate everyday women who are facing their fears, juggling family and business, embracing their awesomeness and wholeheartedly chasing their dream of flipping houses. Each episode delivers honest to goodness tools, tips and strategies you can implement today to get closer to your first or next successful house flip. Here's your spiky haired breakfast taco loving host, house flipping coach, Debbie DeViery.

Speaker 2: 0:40

Hey there, thanks for hanging out with us today. So we're going to talk with Angela, who is one of our flip sisters in the Detroit, michigan area, and we get to do a deep dive. On her first flip, she made an incredible 16% profit. So, based on the sales price, 16% of that was her profit. Just for reference, best practice is 10%. So anything above 10% is awesome, 10% is awesome. Anything above it is even more awesome. And that was on the side of her being a busy mom and having a full-time job. So we're going to hear issues that came up, problems she had to solve. It was pretty smooth sailing until she went under contract to sell and she had a surprise appraisal that almost derailed the whole thing. So she'll tell us how they saved the deal and the buyer got to move forward with the purchase. But it got a little bit tricky there and it got a little bit scary there. And we're also going to talk about the biggest lessons she learned. She shares three great lessons that are important for beginners and seasoned investors alike. All right, let's get into this conversation. You're going to love her. She's fantastic and we call her Angela with the Cool Kicks. Here we go. You know the drill you want to introduce yourself and let us know who you are, where you are and what you're up to in the world.

Speaker 3: 2:32

My name is Angela and I live in Metro Detroit, just a couple suburbs outside of the city. I'm a mom of a sixth grade boy, first year of middle school. Big changes over here.

Speaker 2: 2:45

Oh my gosh, I can't even with what happened in the sixth grade. It was crazy.

Speaker 3: 2:50

It's a big change, it's a big adjustment. Yeah, I'm a single mom, but saying that doesn't give enough credit to his dad, because he's got a great dad. You know week on, week off, but yeah, I've got a child and a full-time job, so I do keep pretty busy. Okay, so you're working full-time. I am. Yeah, I work from home. I've worked from home pre-pandemic since 2013,. So I've been working from home for a while Since before it was a thing really.

Speaker 2: 3:21

Yeah, what kind of work do you?

Speaker 3: 3:22

do. It's a strange job unless you know about it. I write training programs for pharmaceutical and biotech sales reps. So drugs come out, big company meetings, things like that, where they get their people together, I develop training solutions for whatever they need to learn about for that session. I used to travel a lot for work. Thankfully it's every other month or so now, so it gives me more time to be home and just settled, which is now.

Speaker 2: 3:53

Yeah, what landed you in our little bubble of flipping houses? So it's kind of funny.

Speaker 3: 4:04

Well, I found myself in a week-long seminar thing through another group and, well, I enjoyed learning about the concepts. It was a nice high-level introduction to just things that now I realize are the basics. It was enough for me to understand that that was not the group for me, but that I liked the space and I was interested in learning more. So I did some more research. I found your podcast and I had actually signed up for kind of like getting to know you call with someone. And in the meantime I had joined my local Facebook page like local real estate investors and I had posted in there kind of asking around about local mentors et cetera. And Amy, who is one of our flip sisters, she responded to my post in the local group saying hey, she's not local, but Debbie DeBerry is amazing. And I was like that's enough, I already have this call set up. But yeah. And so, hearing that she had had such a great experience in the program and having listened to the podcast, I went into the call with the mindset that, yeah, I think this is the place for me and yeah. I love it Shout out to Amy, shout out. Amy is going to be shouted out like three times she's awesome.

Speaker 2: 5:30

I know she's awesome. She's such a gem. We are community. I love our community because it just attracts like the best hearts. So, yeah, let's definitely give credit where credit is due. So okay, so that's how you found us. And then when let's walk, you, let's walk through the first flip. So you recently sold it like you recently closed I did.

Speaker 3: 5:57

I recently closed, two weeks ago, okay, and then the next day after that I bought my second one. So it was a busy week for me that week. Look at you, that's awesome, yeah. So I signed up for the program and I spent the first couple of months going through the modules. I didn't want to like dive into anything before I was ready. I, you know, set a little bit of time aside every evening, started going through everything, and then I built the team. I started to follow the steps and I did make a couple of offers. I connected with wholesalers in the area. I started making some offers, but I actually the one that I ended up purchasing, shout out to Amy again. Amy called me one day. She said hey, I got this lead through my website. It's not in an area that you know I typically work in and I've got enough going on right now, but it seems really promising. Would you be interested? I'd go with you. So Amy and I went out, met the seller, looked at it together. She, you know, I don't know. She gave me some good tips on what it was gutted Like. Let's be real. Everything needed to be done. It was completely gutted, had been empty for seven years. It was a huge project, but I was like, yeah, this is this, is this, is it, I want this house. So we looked at it. The seller wasn't really talking to anyone else signed the papers. It was all done in under a week. Wow, it went really fast. Yeah, we went straight to title company. Went straight to the title company with the purchase agreements and met at a coffee shop, signed some papers and In a way you go yeah.

Speaker 2: 7:34

So what was the seller situation? Like you said, the house had been empty. So did they live there? Or had they inherited it, or Nope.

Speaker 3: 7:46

So what I found out? So I was either the third or fourth. I was never clear if there was three people before me or if I was the third, but it had been owned by multiple people trying to do what. What I did, trying to flip multiple investors, no-transcript, gotten in there and then didn't really do anything, ran into some issues, and I was the third one. So the seller had purchased it about two years before he did some work. But what I found out is and he told us this upfront he didn't pull the proper permits and when the city got kind of wind of the work he was doing, they're very strict and they made him like take down all the drywall. And then he got kind of frustrated with it and said I'm done with this, this is. It was just it felt bad to him at that point. He wanted to get rid of it and move on. So I went in there knowing the house has like a big red flag on it that I had to sign an affidavit accepting all of these violations, promising I'll correct them. And so when I bought it it came with a whole host of kind of issues I had to go backwards and resolve and I knew which I would have done anyways. But you have to be very by the book. Pull the permits, do everything the right way.

Speaker 2: 9:08

Yeah, because when you get caught it's like dang it. Why didn't I just do that? It's a lot more work to untangle it. It is more work to untangle it, and so people are like but I don't wanna wait for the permit. Well, I promise you you're gonna add on more time on the backend cleaning up your violations.

Speaker 3: 9:27

Yeah, and you don't realize too that people, especially in smaller cities too, the people in the building offices and the permitting offices, they know you're not fooling them. They see a house is sold a couple months apart and the listing says oh, all new electrical, all new plumbing and no permits for pull for those things. Guess what? You're gonna be in trouble. I've become really good friends with the women in the building department because I spent so much time there. She and I would always chat and find the work. We should just go get lunch one day. So we're besties now. I love it.

Speaker 2: 10:03

I love it.

Speaker 3: 10:03

That is so cool, I love that it's good to do it by the properly and not get yourself in some trouble, even if it does take a little bit more work.

Speaker 2: 10:12

Yeah, Okay. So you bought it from either the third or second investor who owned it. Okay, got it, Okay. So when did you close on the purchase?

Speaker 3: 10:27

Like October 12th somewhere around there, okay, early mid-October. And what was the purchase price? $37,000. $37,000. Okay, $37,000. I know, oh, inexpensive. It's quite a different market. It's not in Detroit proper, but Detroit Metro, I think, is a little bit unique to some parts of the country.

Speaker 2: 10:49

Yeah, wow, okay. When you first bought it, what were you anticipating the repairs to be? I thought about $80,000.

Speaker 3: 11:00

And, like I said, it was totally gutted. The previous investor did run Electrical and that was the one thing that he did get approved rough. So it had some walls up and it had rough Electrical but it needed everything else. It needed all new plumbing, it had no ductwork, it needed all HVAC and the Electrical ended up having some issues. We took down some walls, everything it needed all new siding. The foundation needed repairs.

Speaker 2: 11:34

It was a big project I love that you were like, let's just do this, this is the one. I love it. I love that you weren't scared off by the fact that. So sometimes that's what people freak out oh, the repairs are more than the house, yes, but it doesn't matter if the numbers work.

Speaker 3: 11:53

And I wonder if people have that mindset too, because some lenders that I talked to they won't necessarily fund if the rehabs are more than the purchase price. So that could be something that kind of put something in the no category for people.

Speaker 2: 12:08

Yes, so, speaking of how did you finance it?

Speaker 3: 12:12

I took a HELAC a home equity line of credit, out on my personal house. I took a $125,000 HELAC out and my intention was that I would use the HELAC for down payments, possibly rehabs. But with this one it was enough to cover the purchase price and the rehab, so I had like $17 left in it when I was done. But I funded the entire thing with the HELAC, and I'm actually doing that on the next house too. But I'm not going to do it forever. It's just working out this way the first two times. The beauty of it, though you can keep reusing it.

Speaker 2: 12:47

That is the beauty of it. Absolutely so. You anticipated ADK in repairs. What did the repairs end up being?

Speaker 3: 12:54

Just under $82,000. Oh wow, Nice. So pretty close yeah, and I knew I needed to kind of stay within that because I was working with my limited amount that was in the HELAC and so I knew I needed to come in right around there and luckily there was no huge. I think it's hard to have huge surprises when you're anticipating, doing everything Exactly.

Speaker 2: 13:17

Exactly my point on why I like to do those. Yeah, yeah. Were there any surprises on the repair front, or was it pretty much? I mean, you anticipated doing everything and you did everything.

Speaker 3: 13:30

Exactly the only thing I didn't do, which I you know, going forward, I did not do a sewer scope before, so we didn't really do an inspection. We knew everything had to be done and so that, always in the back of my head, I was worried that I don't know what's underground, what can't I see. I was worried about it, but I had it ended up not being an issue.

Speaker 2: 13:52

Oh good.

Speaker 3: 13:53

Yeah, we did have one later and it wasn't an issue, but that could have been like in my head. I knew that that could have been the only thing that would sneak up on me and maybe cause some trouble down the road. Yeah, especially having sat alone unused for so long. You never know.

Speaker 2: 14:10

Yep, what was the contractor situation? Did you manage the contractor and subs, or did you have like a GC running the show, or what did that look like?

Speaker 3: 14:19

Not really. So I vetted a handful at least six people. Some of them I just didn't get a good vibe from and I couldn't see myself working with them on such a big project for such a long time. I just, for whatever reason. No, they weren't the people. One guy I really liked, but he was coming in way too expensive. Another one couldn't start for a few months but as I was sharing this with a close friend of mine, her husband said, hey, you should reach out to this guy, brad. He did work in our house years ago, but I see on Facebook he's mostly working with investors and I said, ok, I'll give him a call. Oh, my god, like he's the best. He ended up being my main guy. I had to have specialized trades, of course, for the HVAC, electrical, plumbing, all that, but yeah, brad did everything else. Or, with his team, he kind of managed all the other things and he was great to work with, like super communicative, really nice guy. We both love Detroit sports, so we talk about basketball and football all day. He has a daughter in the same school with my son, although we had never crossed paths before. So yeah, he's wonderful and he's working on the second house. And yeah, I told them, I never want to work at another house without you. Don't get that.

Speaker 2: 15:38

I get that. Yeah, you said that, I get that.

Speaker 3: 15:41

Yeah, you've got the guys that work with him and it really went well. I feel like I lucked out completely.

Speaker 2: 15:48

Nice, it generally does. So you did the vetting up front though. So I don't know that you lucked out. Because you did the vetting, you didn't move forward with people where your gut was like I don't, I'm not feeling right here. So you listened to that. So maybe a little bit of luck, but mostly you also vetted Instinct too.

Speaker 3: 16:11

Instinct, vetted, yeah. And then with the specialized trades, what I did was on the local Facebook page. I don't post a lot in there, but I'm on there and I see who's active, who's doing things in a way that I kind of think, from what I know, who's doing things in a way that I would want to also do them. And then who do they use and who's getting the good? They're brutally honest in this group and so you know if someone's doing a great job and if they're not. So I got multiple bids but I went with people that I had kind of seen vetted in the group and their investors' friendly pricing and that kind of stuff. So I went with the people that I had found through the Facebook group.

Speaker 2: 16:58

Yeah, I love those local real estate investing groups for that very reason. For those contractor recommendations, for lender recommendations, for whatever cabinets, whatever vendor, they're a great resource for that for sure. Ok, awesome, so no major surprises. Nice, so you bought it in October. What was your total timeline?

Speaker 3: 17:27

Total timeline from purchase to sale was just over seven months and then from when we were done to when it sold, there was about a month of like closing, closing all that kind of stuff. It took about six months, which is what I had planned for. But I didn't actually think it would take that long. I thought we'd be done more like in February, but honestly it's probably good that we weren't. I think the market really did here and I know it's different everywhere it has recovered during the spring. I think if we had sold them if I had sold them February, it would have been a little bit, maybe a little bit tougher, I'm not sure. I mean, you have to say, but I think I think it was not a bad thing to wait until the spring.

Speaker 2: 18:17

Tell me about when you listed it for sale. How was that feeling?

Speaker 3: 18:26

Really exciting I did do. I had it staged. I wanted it staged for my own. I knew it would probably sell faster, but I also wanted to have like really pretty pictures for an actor for my own kind of like reflection on it. But yeah, so I had it staged and went on the market. I was super excited. Amy also has her license. She does. She's not like a day-to-day a real estate agent, but she has her license. So she listed it and we had 11 showings the first day and we had an open house scheduled for the weekend. We started, we listed it I think Wednesday night, thursday, we had 11 showings and I had two offers in hand by the end of the day and another one they said was coming and one of the offers they had put kind of a timeline for end of Friday and the open house was Sunday. And I don't know again, like I kind of go with my gut on things, maybe more than I should, but one of the offers I really liked it was a good offer. It was over asking. I had an appraisal gap. I felt really good about where we listed it price-wise, but when I got offers both of them were over. I didn't know that it would. I feel good about where we listed it, but I didn't think it would necessarily appraise over. So the appraisal gap was a nice little added bonus. They're gonna pay transfer taxes and I don't know. I just I felt like good vibes coming from the agent and the buyer threw the offers. So we ended up going with that. I told Amy, let's take this one. And that's where the kind of surprises started. Oh gosh, okay, I was surprised at the game during the sale part of it.

Speaker 2: 20:19

So what did you? What was the list price of it?

Speaker 3: 20:23

159,800.

Speaker 2: 20:29

What did you end up going under contract app?

Speaker 3: 20:32

The offer that I accepted was 171,000. Oh, dang like significantly over. Yes, with the 5,000 appraisal gap, not to go over the top price of 171s. Got it, so yeah.

Speaker 2: 20:47

Okay, so you took that offer, and then.

Speaker 3: 20:51

And then the inspection happened. Inspection went great like nothing. They said there was nothing that came up during the inspection, which I had thought because we had just gone through six inspections through the city and got all of our stickers, but Right. And then the appraisal happened and the appraisal came in like really disappointingly low 139,000. Oh my gosh, which was like a shock in the worst way and everyone was shocked the lender, the buyer's agent, me and Amy, and we were all like, well, we didn't expect this. You know I didn't think it would appraise at 171, but I had done, you know, I thought, a decent job up front of comping. But the thing that we ran into was the house is a bungalow with no garage and no basement, and there are very, very, very few of those in the market, sure. So it was hard slash impossible to find apples to apples, yeah. So I was looking at bungalows, no garage, with the basement, and then deducting 10,000, trying to find renovated, you know, comparable finishes, et cetera. But the appraiser wasn't looking at it that way, he only was looking at bungalows with no garage and no basement. So he was willing to go further back in time and farther out distance-wise to find these properties. And then even then the ours was literally brand new, everything in it, and some of them were not renovated. It didn't, and everyone can look at it different ways. You know, I had thought the appraisal was a little bit more objective, less subjective, but there's different ways you can look at things, I guess.

Speaker 2: 22:41

Oh yeah, for sure. Yeah, oh yeah. Get five appraisers and you'll have five different appraisal values.

Speaker 3: 22:47

Yeah, so what we did, we put together the rebuttal package. You know it's like did a really good job with that. I thought Amy sent it off and then that night we heard back. Because what they do is they send your rebuttal package back to the same appraiser and that same appraiser is like nope, I did it right. Sorry, you know it is what it is 136,000 next, and so that that didn't seem right, like that was. I don't think I would have lost money, but I think I wouldn't have made anything. But I didn't want the buyer like I don't know. I felt I didn't want the buyer also to lose out. So we talked with through the agents. Amy talked to her agent and she still really wanted the house. I didn't want to put it back on the market. I wanted to come to a solution. So she switched to lenders and we just started over again. The new lender and this appraisal came back in at 1.62.

Speaker 2: 23:48

No joke.

Speaker 3: 23:50

Yeah. So we went from an appraisal of 1.39 to the second appraiser, with the new lender at 1.62. And then with the $5,000 gap that brought the final price up to 1.67.

Speaker 2: 24:02

Oh, my God yeah.

Speaker 3: 24:05

Wow, it was a roller coaster. Yeah, there's many different ways it could have gone. We could have relisted it, she could have walked away, but we really wanted the house. I wanted to sell it to her. I didn't want to relist it. Every month you hold it costs money and I don't know. I just I felt like it was supposed to go this way. So I had kind of come to terms which maybe I shouldn't have. I had kind of like talked myself into well, if that appraises low again, maybe that's the true worth of it and that's. I'm just gonna sell it and this was a learning experience. But I'm glad that it didn't because I do believe it's worth what it appraised for, knowing what went into it and what's all the things that are in there that are literally brand new and the location's really nice for that part of town. It's in a beautiful location. So I don't know it all worked out, but it was a little bit perry for a while, oh my gosh, that's crazy.

Speaker 2: 25:06

It was a big yeah, a big, so stressful. Well, because it's such a you're so blindsided Like that is shockingly low. That's not just a low appraisal, that is shockingly low.

Speaker 3: 25:20

Really really low. You know I work okay with like 150, 155,. You know that still would have got me to a 10% profit and you know it's, but I'm really glad it worked out this way for many, many reasons Right. Right.

Speaker 2: 25:37

Okay, so what did your profit end up being Just over 27,000. That is amazing. Which is like what percent? Like 16, 17%, maybe?

Speaker 3: 25:48

Oh, it's sold for 167 and the profit I think higher than that.

Speaker 2: 25:53

Yeah, that's amazing. Yeah, I think higher than that. That is awesome. Yeah, yeah, cause it's almost 20.

Speaker 3: 26:00

Yeah, yeah, your private 17. So, yeah, the holding costs were just over 6,000. Wow and yeah, closing costs 12 and yeah, I walked away with just over 27.

Speaker 2: 26:12

That is so awesome. Congratulations. Yeah, thank you. It was very exciting. You freaking, did it.

Speaker 3: 26:17

Yeah, I know that's so cool and I loved it. I thought it was so fun. I really really enjoyed it. I liked problem solving, I liked building relationships, I liked meeting people. All of it was really really good. It was a huge project and once I had tears once.

Speaker 2: 26:41

After the first appraisal cause, that's probably when I was right, yeah.

Speaker 3: 26:44

Yeah, almost, but no, yeah, but it was great. I really, really enjoyed it. I couldn't wait to get another. I just wanted that money to show back up in the account so I could send it out again. And yeah, it was a really fun project and I want to keep doing it for as long as I can. I love that.

Speaker 2: 27:02

Is there anything? Let me ask it differently what were, say, what were some of your top lessons learned on that one?

Speaker 3: 27:12

Yeah, I would say kind of a big one was to look at the big picture, not when we're making decisions. For example, electrical contractor got multiple bids. I ended up going with someone that was one of the lower bids but they were not. This was you know how I said I went through people recommended through the group. I had gotten bids through the group, people I'd found through the group, but the person I ended up using was a recommendation from someone else not vetted through the group came in lower. You know it was like okay, a way to save some money. Incredibly difficult to deal with. They just disappear for weeks. I think two full months of the tail end of the project were just delays and the electrical end of things. That's a lot of money. When you think about holding costs, you know every month saving that you know six or 800 upfront ended up costing me probably 3000. Oh wow.

Speaker 2: 28:22

Yes, that's such a great tip.

Speaker 3: 28:26

I would use almost everybody again that I worked with. But I need to look at the bigger picture and not just make decisions based on like pinching pennies at the outset. And this time around too, I'm trying to be more mindful of sourcing deals for things. You know I'm on a little bit tighter budget with this one that I'm working on now and I've been just sourcing things, you know, through different ways, like getting professional discounts using my, you know, business tax idea where I can finding the same tile I would go buy at Home Depot. You know someone's got three cases excess on marketplace for, you know, 80% off and not compromising the quality at all, but just spending a little bit more time to find the deals. And I've been keeping a lot better records this time. I did not keep great records last time so when it came time to finish the project and look at the numbers, I had to do a lot of sorting and I know it's gonna come back to bite me at tax time. Luckily, I kind of sorted through things you know to do my post sale debrief, yeah, but I'm keeping a lot better records this time of where the money's going, what's going on every week, so I can start to see patterns of where the time both time and dollars are going and how they're flowing. So I kind of winged it last time. After about the first month I was very diligent and then I let it go. But I'm keeping really good track this time and I've almost spent besides my bucket for labor. I've almost spent my entire budget this time. So it's gonna be a quicker flip for my second one and I've managed to save about 4,000 from what I had budgeted to what I by just kind of being a little bit more diligent about sourcing things.

Speaker 2: 30:16

Yes, I mean, especially this day and age, the internet and all the different marketplaces everywhere that we can get it in it. You nailed it. It's not about compromising quality or even aesthetics, right, it's just getting a better price and saving where you can. Yeah, yeah, absolutely yeah. So it sounds like you liked a lot of the things. Yeah, the problem solving all of that Did you do? Did you choose the finish out and the design? Did you do the design work? Yeah, yeah.

Speaker 3: 30:47

I did, and both houses that I work under you know a little bit lower price point. It wouldn't have made sense to go crazy with the finishes you know or do something you know really ornate or you know really pricey. But I feel like what I was going for was something really clean, modern, like kind of timeless but with a touch of you know, modern. I went kind of light wood, white and black mostly and I thought it looked really nice. The staging really helped because it showed how you could bring color in. I would like to do a house, you know somewhere down the road where I can be a little bit more creative with you know some of the finishes or something.

Speaker 2: 31:33

But yeah, I don't know, but good for you for keeping that balance, because we can't overdo. And it's hard because it's like, oh, but I want to do this, this and this, and it'd be great if I could do this, this and this, and sometimes it's just we well enough alone. Yeah, and I would do. Do what you need to do to, you know, create a pretty product and save, obviously, but staying in line with the comparables, because if you go above and and then you're trying to price it above to, you know, that's not going to work. Yeah, it doesn't work that way. The buyer doesn't care, the buyer doesn't care what you put into it.

Speaker 3: 32:08

No, and the second, as I'm doing, I don't love the color of it. It's, you know, it's kind of a yellowy cream beige and it has brown shutters. And I was thinking about you know, well, it's very costly to recite it and, you know, could paint it as well, but the budget doesn't really allow for that. So what I'm doing instead is power washing everything. I had to put a new roof on, so doing new shutters in a different color, new window boxes, tying the roof in, so it looks completely different. But we didn't have to change all the siding or do that. That is a lot more expensive, but in the neighborhood that color is very common, so it doesn't look any. You know, it doesn't stand out from the neighborhood and I think it's. It looks a lot better now with the new shutters and the new roof and the the window boxes that it adds like a little bit of you know, I don't know just something, a little detail design to it, but in a cost, more cost efficient manner.

Speaker 2: 33:05

Right, so let's talk a little bit about the second flip and like just what tell me about? Okay, so you bought it two days after. No, the day after you sold your first flip. I love that. Yep, yeah, which means you've been in it about two weeks. Yep, what do you think your timeframe will be on this one? This one? I'm hoping to get it three months. Oh nice, it's not a full gut, I presume.

Speaker 3: 33:30

No, no, it's not. It's not at all. I mean, it has walls. I'll say that Everything else has come out. It has walls and it had ductwork. Yeah, so we got right in there. We demoed everything. 20-yard dumpster filled up the first day, yeah. And then that, following Monday, it had a brand new roof. Tuesday it had a new furnace and air conditioning yeah, and everything's gutted. Some walls are opened up already. We're fixing, you know, things that need to be fixed before we start, you know, putting it all back together. It looks terrible right now. It looked a lot better when I bought it, even when it needed state, but right now it looks awful. My dad came over yesterday to help with some electrical issues and I just needed his advice, since he's really smart about these things and he was like whoa you can see in the pictures when I bought it. Oh right, it's considerably worse right now, you know, but it's going to be good soon.

Speaker 2: 34:34

Yeah, it's just the chaos before it gets all nice and pretty. It's supposed to look like that, okay. So what were your numbers on this one? What did you buy it for? What are you putting?

Speaker 3: 34:48

into it. I bought it for $90,500. And I will put about $40,000 into it and I want to list it at $164,000. So, yeah, probably not quite as big a profit this time, but the timeline shorter. And you know, yeah, I was hoping to get something on the market in the summer, before the fall, but, yeah, I fell in love. So the first house was a great project but I didn't feel like when I walked in it was just a shell, you know. But when I walked into this one, a family had lived there for, you know, a lifetime and I don't know. It just felt different walking in and I loved it. You could tell it was very well loved. It just felt different. I thought I really want this house. It reminded me of my grandparents and I had like all these feelings walking into it. And it has a half acre yard, which is big for, you know, being in this area, I don't have a half acre of anywhere close to that and you could tell it was beautiful. This woman had spent a ton of time, you know, setting up this yard in the gardens but it had been neglected for many, many, many years. So there's like all this good you know, under there that I'm excited to kind of bring it back back out. The layout's really nice for the. I don't know it's just. It felt really good. I was, I really wanted it. I had to. There was a little. I bought it off the MLS.

Speaker 2: 36:20

Oh nice.

Speaker 3: 36:21

I was going to ask you how you found it. Yeah, I bought it off the MLS this time and I went straight to the listing agent and just called him and asked you know, hey, you know I'm not, I'm not really working with an agent. Can I come take a look at the house? And he's like, yeah, when can you go? So we met there half hour later and Brad, my contractor he lives like down the I don't know five minutes from there. So he met me over there and we just, you know, got it done. We looked at it and I said, okay, you know, we're going to go talk about this, I'll have an offer over to you tonight. And, yeah, it gave us a little edge to not be working with a buying agent at that point.

Speaker 2: 36:58

Yes, I just said that to somebody in the group. You don't have to have an agent. Go to the listing agent.

Speaker 3: 37:03

Yeah, and I always want to work with Amy to sell it. You know she said she likes doing that kind of stuff, so she'll, you know she'll sell this when it's time. But I think it gives you a little bit of an edge to go straight to an agent when you're buying, if you you know why not you know, yeah, okay, so was it a new listing, or had it been on the market a little bit? It was brand new and so, yeah, I had to raise my offer a little bit, but the number still worked and the agent sent me over the other person's offer. He's like I swear, I'm not, you know, just trying to, you know. Yeah, good for him. Yeah, he was really transparent. What was the list price? It was listed at 80,000. I had offered 86,000. Someone else offered 90. So I offered 90,500.

Speaker 2: 37:50

I love it.

Speaker 3: 37:52

Sorry, yeah, it would have been better to get it for 80, but it still works.

Speaker 2: 37:58

That's exciting. Yeah, I can't wait to see that. One Can't wait to see that transformation too.

Speaker 3: 38:04

Yeah, me too. I'm excited. I bought everything. Like everything is in the garage.

Speaker 2: 38:08

Oh my God, same I totally get that.

Speaker 3: 38:11

I have bought everything. I just like I want it to be there when it's time.

Speaker 2: 38:15

Yeah, I totally get that. Like my thing is, so I in everything. It's like I hate to be the holdup anywhere. So like if I don't want to delay somebody else doing their job, because like it's so frustrating when we're waiting for somebody to do their job, so we can do our job, and it's like, oh so I never want to be that person that is delaying something, so I always have materials piled high in the garage and it's just what it's going to be.

Speaker 3: 38:44

Yeah, I feel you. Yeah. So I bought like all of this stuff that I knew I needed. I wanted to pick out, but things, like you know, I don't know sheets of drywall, grout, whatever, what I did with Brad, this time I have gone. Lowe's happens to be the closest to this house. If it was Home Depot I would have done the same thing. I went and bought a $500 gift card and I you know he's using that for kind of the incidental purchases and then when that runs out or gets close, I'll go buy another one. So he's keeping the receipts and I, just so it doesn't hold him up and go buy stuff. Yes, and then, like all the other things, are just sitting in the garage waiting. And it helps me too, because I am working full time, so when I have, you know, weekends or evenings, I can go gather all this stuff up, put it in the garage and then it's just it's there when we're ready for it.

Speaker 2: 39:30

Yeah, Is the goal? Is the end goal to eventually do this full time, or are you enjoying doing it on the side? You know?

Speaker 3: 39:37

my goal is eventually, like three to five years. I want to shift the balance. I like what I do, but my type of work is also in demand, like on a contract basis, so I think I could do this what I'm doing professionally for clients more on, like a freelance contract basis yeah, as needed, and then spend more time doing slips or you know other times of real estate investing. I do want to just, you know, buy and hold Eventually. I know there's a lot of benefits, probably next year. My goal was to flip two houses within the year of joining the program, so I should be really close. That's amazing, yeah.

Speaker 2: 40:16

I should be really close. Seriously, that is just awesome. Kudos to you. You did it, you're doing it, you are on track to hit your goal and I'm just I'm super happy for you. So anytime I think of you, I think of Angela with the cool kicks, because you got on some cool kids at the event and I always think Angela with the cool kicks.

Speaker 3: 40:40

That event was so fun. I can't wait for another one.

Speaker 2: 40:44

Oh my gosh, I felt so good and people were like I couldn't come or really want to come. But yeah, that was so. It was awesome. I didn't know how it was going to translate. The community online is so amazing and it's like is it going to be OK in person too? So I was nervous about that and it was beyond OK. It was beyond anything like. It makes me teary thinking about it right now. I'm such a lush, but it's a great community. Well, thank you for making it such. Thank you for playing a role in, and contributing and engaging and just being you. Thank you I love being here Awesome. Is there anything we didn't touch on that you wanted to share? I don't think so.

Speaker 3: 41:29

Yeah, I think I think that's everything like kind of my big lessons learned and successes and yeah, no, it was. I don't know, I didn't feel scared. I that's not like part of how I felt about any of this. I was excited the whole time. Interesting. I never thought it would be, I don't know, I never thought there'd be something that I couldn't overcome. And if you just go at things with the mindset that there's a solution to every problem yes, might not be the first thing that jumps to your mind, but there, and don't be afraid to reach out and ask people you know, ask in the group, ask locally. If it's something that local knowledge is, you know, a better solution for.

Speaker 2: 42:12

Just ask yeah, what was your biggest fear?

Speaker 3: 42:17

Not finding, not finding the right people to help out, because I can't do this alone, I don't have time or the skills or, you know, like that was never my part of my plan. So I was, I was, I was a little worried about just finding the right people, but didn't, you know, end up being a bad thing? I didn't really worry about losing money because I thought, even if I break even, it's made a nice house, someone's got a good home. You know, I was telling myself all those things, it's good to make the profit, you know, and reinvest it and all that. But I don't know, I wasn't super scared, I was just excited and I think it's because I felt well prepared. You know, yeah, and you go through the modules, you, you know, learn from people. I went into it feeling like I've done the work to be ready for this and I'm not scared about it.

Speaker 2: 43:13

I love that. One of the biggest outcomes that people get yeah, the flip is great, that's fine, that's wonderful. I know everybody's here for the flip, but obviously some big things happen along the way to that and I think one of the biggest things, one of the biggest outcomes, is People learn to trust themselves more. Trust that they will be OK If something comes up, trust that there is a solution, even if it's not the first thing you try. Just try something else, it'll be OK, you will be OK. So I'm glad that you had that mindset going into it.

Speaker 3: 43:56

It feels good to solve a problem Sure, going to learn something along the way. And you're like, yes, OK, I did this.

Speaker 2: 44:02

Honestly, if there weren't problems to solve, I wouldn't be doing it Like it's I love the puzzles I love it's like it's stimulating, right. It's like, yeah, it makes me feel like like I, like you said, like I'm learning and growing. So, yeah, well, kudos to you. You did it and you're doing it again, yes, and again, and again, and again, and again, and again and again. Well, we'll have you back. You can debrief us on number two how it went. Thank you, debbie. Thanks Angela, thank you for for just being you and the group. I. We appreciate it. I appreciate it very much. I'm so glad you're here. I'm so happy to be here. Thanks, angela. All right, I'll see you in the group. Ok, bye. Those lessons were great, right? So to recap lesson one look at the big picture. The cheapest bid may end up costing you more in the long run. And then, number two take time to find better pricing on materials without sacrificing quality. All right, take the time to research and find the best deals. And then, number three keep better records. Oh, I know that's a downfall for a lot of us, but such great reminders. Thank you again, angela, for sharing your story with us and listener, if you are still sitting on the sideline, thinking you can't do it because you've got kids, because you've got a full time job, because you've got this and that. Yes, you can. If you're committed to the goal, you will find a way to make it happen. All right, we are here to help. We give you daily guidance, daily coaching, daily support, the steps to take everything you need to do the thing. If you want our help, go to herfirstflipcom and book a call with us. We'd love to connect with you. All right, until next time, go out there, flip houses like a girl, leave people in places better than you find them and make it a great day. Bye, y'all.