Welcome to the February 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.
February 2022 Income Report – Total Revenue: $67,143.23
I wish I could type out a sound effect…one the at sounds like: wah, wah, wah
This was not our best month. In fact, it was one of our worst. But, I’m committed to doing these reports through the ups and downs and being completely transparent along the way.
Not everything is sunshine and rainbows in the real estate investing business. There are generally more ups than downs, but every once in a while you get a stinker thrown in the mix to bring you back down to earth.
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. This was a lackluster month. The total revenue was just over $67,000 which is far below my goals.
Here are the February 2022 statistics:
Comments on February 2022:
The income this month was so low because of a number of factors.
The biggest issue is that we only closed 1 resale. That’s well below the 5+ properties that we need to be closing to generate the type of revenue that we want.
A number of the properties that we have under contract to be resold have either been delayed or are due to close next month. That’s ok though. I’m projecting March to be a really good month that will hopefully help erase the bad stigma.
It’s a constant challenge building up your inventory in this business, so having more properties to sell could have definitely helped in avoiding this type of month.
The good news is that the sale that we did close in February was a pretty good one (more on that below).
We also kept the pedal to the medal and sent out 41,052 pieces of mail. Thankfully we don’t do this mailing ourselves (we use a mailing service) or we would have been spending all month stuffing envelopes.
I wish each month could be bigger than the next. But, unfortunately business doesn’t work that way.
It’s looking like March 2022 is going to be a record month. Sign up here is you want to be notified when we post our next Income Report
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 February 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 – McGhees Rd
Deal #1 notes: This was a very quick sale. In fact, it was under contract within days of us purchasing the property. The buyer paid cash and was able to close in a couple of weeks. We negotiated slightly off our listing price, but that was ok because we were able to achieve such a quick sale. It’s pretty likely that we could have sold this property for more, but I’m always a fan of a quick sale…especially when you have a really solid return on investment. Sure, you can wait around to get more, but is it worth it? This business is about buying and selling quickly and keeping the money moving. That’s what happened on this deal and it’s a deal that worked out great for us and the end buyer.
Year to Date 2022:
2022 Year to Date (YTD) Statistics
Now that we’re 2 months into this year, some trends are starting to emerge.
Our average gross profit per deal is not where it needs to be. But, we’ve got some good ones under contract to close next month which should really help bump up that average.
The average days in inventory is exceptional! Anything under 60 days is amazing and it’s going to be hard to improve. I expect this average to drift closer to the 60 day mark as we close more transactions this year. Not that I want it to, but I’m just being realistic.
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 #1 (the only deal we closed this month) – McGheesRd. as an example.
The return on investment was 48.89%, which is amazing in the world of investments. What really makes this special though is the fact that we only held this property for 20 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 892.24%!!
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 892.24% 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 February 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: