Welcome to our monthly income report where we detail everything associated with our land flipping and development business. The land flipping model of real estate investing can be highly lucrative and also very rewarding.
We resold our first property using this model in March of 2021 and we’ve been on an accelerating path ever since. It’s now grown from just me, Heather and one single assistant, to a large team dedicated to bigger and bigger growth.
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.
January 2022 Income Report – Total Revenue: $204,952
This is a big month!
This is the first monthly income report that we’ll be sharing. We’ll be publishing a similar report each month, so if you like this kind of stuff, sign up here to get notified.
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.
January 2022 was a pretty good month overall. It was not our best month, but it was pretty close ($234,000 in November 2021).
Here are the January 2022 statistics:
Comments on January 2022:
I can’t complain about the revenue figure. This has been our second best month yet. While I’ve got goals to go much higher than this, I’m happy with this for now.
The gross profit this month was pretty good as well. Again, we’ve had better months, but this amount will keep us growing and investing in properties and more letters to generate more deals.
Getting 6 sales in January is right on target with what I was expecting. I’d like to get this number closer to 10 sales a month in the near term.
The average gross profit per deal is low. In 2021, I averaged about $20k over all of our deals. This number is lower this month because I had a couple of smaller deals that brought the average down. Keep reading to see the details below on each deal.
The average days in inventory was pretty average. Many of the deals were quick, but I had one that you’ll see below that was in our inventory a long time that messed up the average. Oh well!
We sent out over 60,000 pieces of mail this month. These pieces of mail are an investment in the future. It could be 2-6 months until I realize all the potential deals from this batch of mail being sent right now.
Honestly, I wish progress was a straight line pointing up, but there are always fluctuations. That’s part of the challenge and the game of business. If it were easy, everyone would do it!
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 January 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 – Shelter Ln
Deal #1 notes: This was a small profit deal. However, it was a unique situation because we agreed to sell it to the neighbor before we even closed on the purchase. So, overall, it was a very low risk transaction and was something I would do any time.
Deal #2 – Ingle Rd
Deal #2 notes: This property was sold to a conventional buyer on the MLS. The original list price was $29,900 and we negotiated down to come together on a deal.
Deal #3 – SR 1001
Deal #3 notes: This was a good one! We only had this property in our inventory 37 days and over doubled our money after all expenses. I wish every deal was this good.
Deal #4 – Weeks Dr
Deal #4 notes: I thought this property was going to be a homerun. It was a potential subdivision property which we listed for $169,900 to start. It ultimately wasn’t worth that because the market told us that! The return on this property was pretty good, but since I started way too high on the list price, I ended up holding it a total of 231 days which is way longer than my standard target of 60 days. I gradually reduced the list price every few weeks until we finally got down to $49,900. This is the point where it attracted enough attention to get it sold. Lesson learned: Price realistically from the start unless it’s a super hot area.
Deal #5 – Redwood Rd
Deal #5 notes: We had a lot of interest in this property and we sold it for the list price. In hindsight, maybe I could have squeezed a little bit more out of it, but I didn’t realize how hot the market was in this area. Overall, I’ll take this type of return every time!
Deal #6 – Chattanooga Dr
Deal #6 notes: We found a cash buyer for this property right away at our list price of $29,900. This was a very short hold and a profitable deal. This was another good one!
Year to Date 2022: ***since this is the first month of the year, the Year to Date figures are the same as the numbers above. This will change next month as revenue, profit, and sales accumulate.
2022 Year to Date (YTD) Statistics
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 #5: Redwood Rd. as an example.
The return on investment was 69.47%, which is amazing in the world of investments. What really makes this special though is the fact that we only held this property for 43 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 583.55%!!
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 583.55% per year called?
How can you do the same thing as an investor and get these kind of returns?
Te 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 January 2022 Income Report. Sign up here to be notified the minute a new report is published.
P.S. In case you missed it, here is the link to the 2021 Year in Review Report.