Income Report – March 2022

April 01, 2022

Welcome to the March 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.

March 2022 Income Report – Total Revenue: $479,193.91

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. It was the most revenue we have brought in any month in this young business. Although I have much bigger goals, $479,000 is a pretty big number. That’s over $15k per day in revenue when you average it out!

Here are the March 2022 statistics:

Comments on March 2022:

March 2022 was an exceptional month all around and I’m here to show you why!

This was our best revenue month ever taking in $479,193.91. Thats’ a pretty good chunk of change and helps make up for last month’s subpar performance.

The gross profit was a record as well. At $262,000 per month, it was a 54.68% gross margin for the month. We’re normally hovering around 45% gross profit margin.

We also had over 6 sales this month. That’s a pretty decent figure for right now, but I want to push this to closer to 10 sales per month in the near term.

Our average days in inventory was amazing at 49 days. That means on average, we only owned these properties for less than 2 months.

As a side note, before I got involved in the land flipping and development business, I assumed that it always took a longer amount of time to sell raw land (than homes). But, what I failed to realize is that if you can offer a good piece of land at a below market price in the right area, you’ll have buyers coming out of the woodwork to buy these properties right away. 

Sure, if the plan was to maximize the revenue for each purchase, we would likely be able to sell these properties for more. But, it’s just as important to sell our inventory quickly. This keeps our money moving and maximizes our annualized return on investment.

March 2022 was a great month for us as a business and it proved to us that we can do much better than what we have been doing. 

Now, that this month is in the books, can we repeat it next month? How much can we grow it to? 

I don’t have the answers to those questions yet, but all I can do is keep pushing and keep trying to do smarter things. I know there will be ups and downs, but I’m planning for sometime in the not to distant future where instead of $479k being a record month, it will be a low water mark. I’m confident we’ll get there!

One last thing to note is that we ended up mailing 35k+ letters. This is lower than what it needs to be. It will likely affect our future months in a negative way. One of the most important aspects to this business is to consistently send out mail. If the mailing slows down, the purchases will slow down. That will ultimately lead to declining sales. This is something that can be completely controlled so it’s an area that will be easy for me to improve in the future.

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 March 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 – Bear Rd

Deal #1 notes: Best deal yet! Ok, this was a pretty good deal. This was actually a commercially zoned property with frontage on a major highway. It was not without it’s challenges though. It was somewhat sloped and the access to the property was not idea. However, there was a perfect buyer for this and it was the neighboring landowner. For them, it was a steal because it instantly increased the value of their property they owned already as it improved their access and gave them a lot more flexibility. We listed this property with a local agent that knew the neighboring landowner and it was sold before it hit the MLS. Gross profit on this property was $97k. Another great stat on this one is the Return on investment which was 229%! We bought this property for $42k and had it under contract for over $150k. After closing costs and commissions, we ended up with a really strong return on our investment. It’s possible that the neighbor wouldn’t have been interested. I’m not sure what would have happened in that case. It still may have sold for the same amount, but there is no way to know for sure since it never made it to the open market. I’m ok with that though! I wish every deal was this great.

Deal #2 – Swamp Rd

Deal #2 notes: First of all, I really liked this street name…it sounds mysterious and cool. But, it also worked out pretty well as an investment. We “only” profited $11k on this property, but the return on investment of 50.62% is really good.This was listed on the MLS with a local agent and it got a good amount of interest. We negotiated the price down a little bit from the list price, but the buyer was willing to close quickly which made it worthwhile for us. Overall, this was a good one. It’s not a home run like Deal #1, but a solid single.

Deal #3 – Lodge Rd

Deal #3 notes: I feel like a broken record a little, but this was another good one. Gross profit was a little bit above last year’s average and the return on investment was pretty good as well. This was a nice property that I was confident would sell quickly. It had a lot of road frontage, beautiful large trees, and even had a stream. This is the type of place that I would have liked to hold onto, but it was on the other side of the country. Oh well, maybe we’ll start holding some of these properties long term if we can figure out a way to make some income from them. I’m working on that!  This one sold for list price after it was on the market about a week. We listed it about 20% below market value to sell it quickly and it worked. The buyer ended up with a nice property at a nice price and we ended up with an overall solid deal on our end too.

Deal #4 – Percy Rd

Deal #4 notes: I liked this property too! It had a really nice feel to it. Nice trees, paths cut through the property, and it was in a growing area. As soon as we put this property on the market, a buyer came forward. We negotiated a deal at list price with a quick close because there were numerous other potential buyers looking at the property. This deal netted us over $40k in profit and we only held it a total of 21 days. Overall, this was a great deal for us and the buyer ended up with a really special property.

Deal #5 – Dowd St

Deal #5 notes:This property was a very unique one! It actually had an old house on the property that was about 100 years old. It was also broken up into 2 parcels. The best part about it was that it was located on the outskirts of a cool little town with a good amount of higher value properties. The house itself didn’t have much value at all and was most likely a teardown. In fact, I think the end buyer was a developer that tore down the house and likely subdivided the land to get even more homesites. With a little bit of an investment, they probably made out pretty well. If I had to do this one again, I probably would have subdivided it myself and paid to have the house removed. This would have maximized our return on this property for sure. But, I really can’t complain about a 119% return on investment in 99 days.

Deal #6 – Royster Rd

Deal #6 notes: Ok, this was a great one too. This was a large property in a nice area. It was a combination of woods and meadows and it would have made an incredible homesite. The issue with this property was that it was nearly impossible to access when we bought it without going down a neighbor’s driveway. It had a deeded easement access on paper, but the access in person was so overgrown, you couldn’t even walk through it. I could have resold it as-is, but the much better option was to have the easement cleared and then resell it. I hired a company we worked with in the past to get the easement cleared and that lead to us finding a buyer right away at a good price. In fact, we had multiple buyers interested in this beautiful property. This is a prime example of investing some additional money into a property to prepare it for resale. In this case we got the easement cleared, but we’ll do other minor development work like surveying, getting perk tests done, subdividing, or other things in order to maximize value or sell quickler.

Year to Date 2022:  

2022 Year to Date (YTD) Statistics

March 2022 really helped out our Year To Date numbers.

Our gross profit is almost at 50%. If we can keep that up, I’ll be a happy camper.

The average days in inventory is also really good. Anything under 60 days is a win for us. 

Revenue is increasing at a pretty good rate. With the first quarter of 2022 in the books, we’re averaging $250,429.87 per month in revenue. If we stay at this current rate, we’ll end up with over $3 Million in revenue. I’d really like to hit $5 Million in revenue this year, so we’ve got some work to do.

I still want to sell more properties each month. That means that I need to buy more good deals. We’re working on ramping up our mailing so we can hit 10 deals per month in the near future. So far this year, we’re averaging just over 4 closed deals per month.

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 #4 as an example.

The return on investment was 92.87%, which is amazing in the world of investments. What really makes this special though is the fact that we only held this property for 21 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 1614.17%!!

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 is1614.17% 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 March 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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