MARCOS AT HIS FIRST FIX AND FLIP
In the previous video that I uploaded, I showed you my mentoring student Christiano, who found two houses in Lehigh Acres which is on the west coast of Florida. In that video we were standing in front of one of the houses that Christiano was rehabbing to fix and flip. We mentioned in that video a second house which he wholesaled to my student Marcos.
This is that second house that Christiano wholesaled to my student Marcos. In this video I am standing at that house with Marcos (and Christiano is there too).
I gave Marcos the hard money loan (we do fix and flip loans for our students) for him to be able to purchase this house. His goal is to fix and flip the house and he is about halfway through renovating the house. This house is a 3 bedroom 2 bathroom house with a swimming pool in a nice quite neighborhood. There is currently a 3/2 house across the street that is listed for sale for $185,000.
Marcos purchased the house in this video for $115,000 (which is a substantial discount to current market prices). We estimated the After Repair Value on this house to be $185,000 to $189,000 or higher (since it has a pool and most of the comps do not).
Marcos plans on spending around $22,000 to $25,000 in total repairing the house. He plans on listing the house for sale at $185,000 to $189,000 in a few months when the house is complete. So he should have a very good profit on this house of around $25,000 to $30,000 net of fees.
This is the first fix and flip house for Marcos. This is his first deal and his first fix and flip since attending my boot camp in May. So Marcos is taking action. The fact that Christiano found the house and was willing to help him with the rehab of the house by using the same crew that Christiano is using made Marcos feel comfortable about buying the house. So here we have one student of mine, helping another student of mine, while I provide the capital for the hard money loan. This is a win/win for all parties. Christiano gets to wholesale a house and make $7,000 flipping it to Marcos. I get a happy student and a hard money loan and a coaching student doing their first deal. Congratulations Marcos on your first deal!