Welcome to the August 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.
August 2022 Income Report – Total Revenue: $322,223.92
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.
August 2022 was a good month all around.
Now for a little insight into these numbers.
Let’s start with the revenue of $322,223.92. This is above our 2022 average so far and I want to keep this trending up. If you break it down to a daily number, we took in $10,394.32 per day!
Gross profit was great in August at $153,500! That’s a 47.64% gross profit margin. I’m always shooting for 50%, but we’re really close this month.
Our sales of 7 properties this month were pretty strong as well. I can see the trend going higher and higher in this category and I think we’ll be able to hit an average of 10 sales a month pretty soon.
The average days in inventory shot up considerably this month at 80.29. We’ve been below 60 days in this category all year and I would like to keep it there. As you’ll see in the next section, we had 2 properties that took a long time to sell which skewed our average negatively.
The other area we fell a little short is the # of pieces of mail sent. We “only” sent 43,902 letters. We’re putting in a lot of effort to refine our mailing lists and make our mailings more efficient. For this reason, my new goal is to hit 50,000 letters per month. Sending mail is the gasoline that runs this business. Mailing consistently is vital to keep our pipeline of purchases full with quality properties.
Keep reading the report for a deal by deal breakdown of all the properties we sold this past month.
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 August 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 – Cherbee Dr
Deal #1 notes: This is a smaller residential building site located in an established community. There was already a perk test on file and no apparent obstacles to building. It also helped that there were very few competing listings. We found a buyer after it was on the market for about 30 days and the rest of the holding time was the escrow period. This was an above average gross profit and an exceptional return on investment.
Deal #2 – Poole Rd
Deal #2 notes: This was a relatively straightforward property. It is over 6 acres and most of it was a cleared meadow. We located a buyer pretty quickly and then the buyer closed the purchase without any difficulties. The return on investment was nearly 100% for only holding the property for 51 days.
Deal #3 – Church Ln
Deal #3 notes: This property was a little bit of a rollercoaster. We fell out of contract with 2 separate buyers. Luckily the 3rd buyer actually completed the purchase. The hold time was an exceptionally long 138 days by our standards. This really hurt our average days in inventory for this month. We still made $11,000 on this property, but it took way longer than it should have. In hindsight, it was still worth the time.
Deal #4 – Cheek Rd
Deal #4 notes: This was a fun deal because we were able to sell it so quickly for our original list price. The day we listed it, we got in a full price cash offer. The title company was able to close the transaction in 2 weeks and that was it! The end result is a 134.84% return on investment in only 16 days of ownership. Not too bad!!
Deal #5 – State Route 167
Deal #5 notes: This was a pretty good deal all around. The property was located in an area that was new to us, so we were unsure of how quickly it would sell. The agent we listed with did a great job and brought us multiple offers within days of listing the property. We ended up selling the property for the list price with a relatively quick closing. We profited $38,000 on this property and it was a 111.04% return in only 48 days. I need to find more deals like this one.
Deal #6 – Manor Ln
Deal #6 notes: This was a really solid deal for us. Again this was a new area that we never owned property in before and we were pleasantly surprised when an offer came in days after it being listed. We sold it right at the asking price with a quickly closing. This was double our average gross profit and we only held it for 40 days total.
Deal #7 – Trail Ln
Deal #7 notes: This one took forever to sell! It is located in an amazing “gated” community. The gated community is great, but it limits any potential buyers driving buy to see it. Plus in this area, there are a lot of buyers that want nothing to do with an HOA. In the future, I will shy away from properties in gated communities or restrictive HOA’s. It just makes it too hard to resell a property like this.
Year to Date 2022:
2022 Year to Date (YTD) Statistics
We smashed past the $2 Million mark in revenue this month. Although I knew that this was inevitable, it was great to clear this barrier. At this point, I think $4 million by the end of 2022 is completely realistic. I’ll do everything I can to make that happen!
Gross profit is nearing a million dollars for 2022 so far. We’ve got 4 more months to go and I’m wondering how close we’ll get to $2 Million in gross profit when the year is closed out. So far we’re averaging $123,887.50 per month in gross profit.
We’ve completed 45 sales this year which is an average of 5.63 per month. I’m pushing to get this to an average of 10 properties per month in the near term.
Our average gross profit per deal is now at $22,024.44. This is well above 2021’s average, so the trend is positive for us.
We’re now at 60.49 average days in our inventory. This is right where we need to be!
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 #6 as an example. This was a pretty good deal for us.
The return on investment was 101.51%, which is amazing in the world of investments. What really makes this special though is the fact that we only held this property for 40 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 926.28%!!
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 926.28% 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 August 2022 Income Report. Sign up here to be notified the minute a new report is published.
P.P.S. In case you missed it, here are the links to my past income reports:
