Income Report – April 2022

May 03, 2022

Welcome to the April 2022 Income Report. This report is where I document our statistics and progress with our land flipping and development business.

I’m a big fan of the land flipping model of real estate investing. As you’ll see, it can be very lucrative and also rewarding.

We resold our first property using this model in March of 2021 and we’ve been on an accelerating path ever since. 

We’re passionate about real estate investing in general. Land flipping is just one of the many business models that you can choose to pursue as a real estate investor. We dive deep into this model and many others in our real estate investing podcast called Turning Profit. You can find us on Youtube and all the other major podcast platforms.

April 2022 Income Report – Total Revenue: $264,322.07

I do my best to make these reports insightful.

I know your time is valuable, so I want you to get as much out of this as possible.

So why in the world would I publish a report like this for the whole world to see?

I’ve got 2 big reasons for doing this:

#1 – Motivate ourselves to improve our business (nothing like putting it out there to the public in order to drive progress). 

#2 – Motivate you! You’ll see what’s possible and learn valuable lessons (at my expense) which will allow you to become a better real estate investor yourself.

We also like to connect with other investors or private lenders that have similar goals. You can find us on social media on Instagram, YouTube, Twitter, TikTok, or by email.

Without further delay, let’s get into the good stuff.

Here are the April 2022 statistics:

Let’s dig into some into some of these numbers.

Revenue (total income) for the month was was $264,322.07. This averages out to about $8,811 per day. While I’m always looking to do more, this is pretty good. Especially when you consider that we sold our first property using this model just over 1 year ago in March of 2021.

Gross Profit was a really solid $129,500. This amount of gross profit allows us to reinvest into more inventory and also send out more pieces of mail as well.

We sold 7 properties this month which is above average. I want to get to 10 sales per month in the near term and this is a big step in that direction.

Average days on market is 56 days. I am super happy with this average. My goal is always to be under 60 days in inventory and I feel like this is right where we need to be.

We also mailed out over 80,000 letters this month. This is the most amount of letters we ever mailed out in a month. This will likely payoff big in the next 3-6 months. First the leads come in, then we get certain properties under contract, then we move toward closing, and ultimately market and resell the properties. It takes time from a letter going out to the time we profit from it. Keeping a high volume of mail each month will give us the best chance at success. 

Keep in mind that sending out this amount of mail costs a lot a money. At an average of about $0.50 per letter, it cost us about $40,000 to send out this much mail. While that may sound like a lot (and it is), the return on this investment will likely be far more than what we’re spending on this mail. 

There were a lot of really solid deals this month that contributed to this amount. Keep reading to get the details below.

Deal by Deal Breakdown:

In this section, I break down each deal. The goal of this is to show you how deals vary in their profitability and what is possible in this business.

These are all the deals that closed in April 2022. We purchased the property (normally in a previous month), and then resold the property to a new buyer. 

***details of the properties have not been shared to protect the anonymity of the parties to these transactions.

Purchase Price = The amount we paid for a property including closing costs

Revenue: This is the amount we received after paying commissions and closing costs

Gross Profit = Revenue – Purchase Price – Property Specific Expenses

Days in Inventory = # of days we owned the property

Return on Investment = Gross Profit /Purchase Price

Deal #1 – Halifax Rd

Deal #1 notes: April started off with a bang…well, not really, but at least a pretty good deal for us. This property was purchased as part of a package deal of 4 properties total. We then put all 4 properties on the market to sell them off individually. This is the first property out of this group to sell. After we listed the property, the property sat on the market for about 30 days until we found the right buyer. We negotiated the price slightly to put the deal together and overall, it was a win/win for both us as and the buyer. The gross profit and return on investment figures are both substantial.

Deal #2 – Clay Rd #1 & #2

Deal #2 notes: This sale was actually 2 properties in one. These properties were also part of that bulk purchase deal mentioned in Deal #1. However, this was 2 separate lots (side by side). We listed them separately on the MLS with a broker. A buyer came forward that wanted to purchase both lots. They offered a lower price than we initially wanted, but it made sense for us to negotiate the price down because they wanted to buy both at once. I like doing transactions like this because we still make money and the buyer also gets a deal. 

Deal #3 – Brick Landing Rd

Deal #3 notes: This was a unique property because it was commercially zoned on a major roadway. It was ideal for a business owner/user opportunity. We got a full price offer on the day we listed this property. The offer was cash and quick close. Based on this, we may have listed it pretty low, but that’s ok. We made a really substantial return on our investment and it was only part of our inventory for 24 days.

Deal #4 – Crest Wood Dr

Deal #4 notes: I wasn’t sure what to think when I bought this property. It was a 5 acre parcel with a mobile home on it. The problem was that there would be no title included with the mobile home. I thought about paying someone to haul off the mobile home after I bought it, but I figured I would just list it as-is. The mobile home appeared to be salvageable if someone could get the title issue figured out. I’m glad I went this route! As soon as we listed it, we had a tremendous amount of interest. In this case, I think we were a little low on our list price. We got under contract right away at full price. After about a week, the buyer backed out for an unknown reason. We put it back on the market and found a new buyer right away. This buyer ended up closing on the deal. They knew the mobile home didn’t come with a title and they were up for figuring out what to do with it.

Deal #5 – Bruno Dr

Deal #5 notes: This was a smaller property that had an old house that was in poor condition. We bout the property for land value only. Soon after this hit the market, there was a neighbor that stepped up and wanted to purchase this property. I have no idea whether they were interested in fixing up the house or tearing it down. Regardless, I think they got a pretty good deal and we ended up with a pretty good return as well.

Deal #6 – Bridge Rd

Deal #6 notes:  This property was located in a very rural area with very few homes nearby. It was really far down a dirt road and I was a little worried that it may take some time to find a buyer. However, this buyer was looking for something off the beaten path and it was a perfect match.

This was a very inexpensive property. In the future, I’m planning to purchase and sell higher dollar properties, but it was hard to argue with the return on investment.

Deal #7 – 5th St

Notes: We initially listed this property at $20,000. We had to reduced it a couple of times to drum up a buyer. It took a long time to sell by our standards as it was in our inventory for 79 days. In hindsight, I wouldn’t have purchased this deal because it only netted us $2,500 in gross profit. That’s still over a 30% return on investment, but it would take many of these smaller deals to have much of an impact on the overall business.

Year to Date 2022:  

2022 Year to Date (YTD) Statistics

As we’ve got ⅓ of 2022 in the books, the trends are starting to become pretty clear.

We broke the $1 Million barrier this month and we’ve got 8 months to go. Can we get to $5 Million in revenue this year? I’m sure going to try.

I’m super excited about the average days in inventory of 48.54. I’m pretty confident this is not going to last, but that’s ok. If I can keep it at 60 days or below, I’ll be thrilled.

Our average gross profit per deal is pretty strong as well. As I mentioned above, I want to focus on purchasing more expensive properties. This should help to increase this metric as we accomplish that.

We’re average 5 sales per month which is not nearly the 10 sales I’m looking for, but we’re going tin the right direction.

Also, we’re just shy of $500,000 in gross profit so far for 2022. Can I get this to $2 Million by the end of the year?

The returns detailed above are very substantial. That is especially true when you consider the hold time and annualize the Return on Investment.

Let’s use Deal #3 as an example.

The return on investment was 123.02%, which is amazing in the investment world. What really makes this special though is the fact that we only held this property for 24 days. When you do the math and annualize this return (if you were to keep this money invested for the whole year), the annualized return on investment would be 1,869.90%!!

Where are you going to find returns like that?

In the stock market, if you’re getting a steady 10% a year, you’re crushing it.

But, if 10% a year is crushing it, what is 1,869,900% per year called?

How can you do the same thing as an investor and get these kind of returns? 

The first thing you’ve got to do is start learning.

It’s not rocket science, but it’s also not as basic as it seems.

Here’s a short list of some of the basics you’ve got to learn to make this work:

  • How the business model itself works
  • How to get the leads coming in
  • Where are the best regions to find deals?
  • How to evaluate properties. What makes a good property and what makes a property not desirable
  • What software and tools to use to give yourself an unfair advantage
  • How to talk with property owners that want to sell
  • How to navigate the escrow/title process in multiple different states to buy a property
  • How to find the best on the ground partners in each location
  • How to find a buyer for your property in a short amount of time for a good price
  • How to negotiate with sellers and buyers.
  • How to build a team so you’re not doing everything yourself
  • How to put a business system in place to automate processes and keep your business organized

In the future, I may decide to offer a training program to teach these skills. For now, I’ve got nothing to sell you. But, you can find a bunch of free content on our Youtube channel and on our podcast that discusses real estate investing.

Just as a disclaimer, investing money comes with risk. Because without risk, there are no returns. Research any investments heavily before putting any of your money at risk.

And, you can check out this page that will feature other podcasts and outlets where I’ve been interviewed.

If you’ve got funds that you would like a better return on, please fill out this form. I’m looking for private money lenders that want to earn a great return on their money secured by these deeply discounted properties we’re buying.

We know that the figures in this report may seem unattainable at first glance, but this did not just “happen” overnight. Like any business, we made progress and improvements over time to get to our current income level.

One last thing, if you liked this, you’ll also learn a lot from this video I filmed. It’s our 50 First Deals that we did in the land flipping business. It’s a very detailed breakdown and it gives you a good idea how our business started and how we did on each deal. Get it here.

That wraps up the April 2022 Income Report. Sign up here to be notified the minute a new report is published.

P.S. In case you missed it, here are links to some of my past income reports:

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