Income Report – November 2022

December 02, 2022

Welcome to the November 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.

Before we get into the report, I’d like to invite you to join our new free community. This is a brand new community designed for you to learn about land flipping and compare notes with other land investors in all stages of the game. JOIN HERE–>>

November 2022 Income Report – Total Revenue: $440,368.81

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.

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 November 2022 statistics:

November was a really solid month!

Our revenue was well above our average for 2022 and on a path to bigger revenue in the future.

If broken down to a daily amount, that would be $14,678.96 per day. Of course, it doesn’t ever happen like that with a real estate investment business like this. It always comes in chunks and eventually you can get it to the point where you get regular chunks on incoming revenue. It’s getting to that point to which is challenging, but it is definitely doable.

We sold a total of 8 properties this month which is a pretty good amount. Each one of these represents and incoming wire for us.

The average profit per deal this month was $23,717.54. That means that we made this much (on average) per property sold. This doesn’t account for our overall business expenses, but it does include property specific expenses like any improvements, commissions, closing costs, etc..

The average days in inventory this month was way out of whack. In fact, we’ve been averaging around 60 days, but this month we sold some properties that were in our inventory for far too long. This really messed up this metric. More details on this below in the deal breakdown section of the report.

Another major metric we track is the number of pieces of mail sent. We sent over 53,000 letters this month. This is how we generate all of leads right now, so it’s important to keep these letters being sent out in these quantities in order to generate the type of business we want to do. This is the most controllable of all the metrics so there aren’t many good excuses if I ever don’t hit this.

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 November 2022. We purchased the property (normally in a previous month), and then resold the property to a new buyer this month. 

***addresses are incomplete in or 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 – Shelbert Rd

Deal #1 notes: This is a nice wooded property in an area of established homes. For some reason, this lot was never built on, but it was relatively flat and had beautiful trees. It also had deeded access to the neighboring pond which was a nice bonus. I had a feeling this property would sell pretty quickly and it did. We ultimately achieved a 66.62% return on our investment after only holding the property for 68 days.

Deal #2 – Coal Rd  26.75

Deal #2 notes: This property was located in a gated community. Our local broker contact went out to this property to check it out prior to our purchase and the neighor mentioned to him that they were interested in buying this property. As soon as we closed, our broker worked out a deal with the neigbor at a win-win price and we didn’t even put the property on the market. It took a while to get the paperwork done during escrow, but everything else went smoothly with this deal.

Deal #3 – Highway 17 –  7.75 acres

Deal #3 notes: This was a problem property for us. In fact, this was probably the closest we got to break even on a property. In fact, after holding it for 258 days, we only profited $563! This property had great road frontage and it was flat. The problem was that it fell out of contract a couple of times. We hired a soil scientist to do a perk test, but the water table was too high for a conventional system. The trees were removed by the previous owner a couple of years ago, so it had limited uses. I thought we’d be able to sell this property for much higher, but at the end of the day I accepted a low offer so we could move on to bigger and better deals. They can’t all be big winners and this one was an example of that.

Deal #4 – Williams Rd  6.0 acres

Deal #4 notes: This was an ok deal overall. We ended up profiting over $7k and held it for longer than average (105 days). It would have sold much quicker if the shape of the lot was different. It was very long and skinny which deterred many potential buyers eventhough it was located in a desirable area. Lot shape does matter and going forward I’ll do a better job in adjusting for this variable.

Deal #5 – Indian Rd  14.5 acres

Deal #5 notes: This was a really interesting property because it had an old house and some outbuildings on the property. I don’t believe any of the structures were salvageable due to their condition, but maybe others could see the vision in it. The property is located in an area with a lot of buyer activity. We worked with an agent that we never worked with before and he did an amazing job. It sold in 46 days and made an above average profit. We’re already working with this agent on numerous other properties.

Deal #6 – Evans Rd #2   9.75 acres

Deal #6 notes:This property was purchased as a package deal with Evans Rd #1 (sold in a previous month). We bought 2 lots together from one seller, and we put them on the market to resell separately. On the first sale for Evans #1, we sold it for more than the purchase price of both parcels. After that sale, our cost basis on this one was essentially zero. That’s why it’s showing as an infinite return on investment. The gross profit after some property specific expenses was $38,990.25. I love these types of deals and am always looking for more like them.

Deal #7 – SR 157   57.0 acres

Deal #7 notes: This is a huge property and it had limited road frontage, but 2 separate access points. The property is heavily wooded and located in an area with some decent demand. On this property, I didn’t clear any access paths, but I wish I would have. I believe we could have sold it quicker and for a higher price. The buyer negotiated a pretty steep discount and I went for it because it was in our inventory for awhile. But, the end result still was a great return for us. We made over $53k in profit which was a 117.47% return on investment.

Deal #8 – Spring Rd  15.0 acres

Deal #8 notes: This was a beautifully maintained property with paths cut through the property and lots of mature trees. We ended up getting this property under contract pretty quickly and the buyer negotiated a pretty good deal for themselves. Overall we didn’t make a huge amount of profit on this property, but it was a very straightforward deal that I would gladly do over and over again.

Year to Date 2022:  

2022 Year to Date (YTD) Statistics

We are getting very close to wrapping up 2022. It’s been a fun ride so far and my plan is to close out 2022 strong.

We’re sitting at a total of $3,218,327 in revenue so far this year. These are the wires that we’ve received from all of our property sales this year. This is after all commissions and closing costs. Originally I wanted to do $5 million in 2022 and that is definitely not going to happen. But, we should finish almost triple what we took in for 2021.

Our gross profit so far this year is $1,439,882.07. This is $130,898.37 per month on average. 

We’ve now sold a total of 63 properties in 2022 which is an average of 5.73 per month. This is short of the 10 I was projecting, but still pretty good overall.

The average profit per deal this year is $22,855.27. This number has been pretty consistent this year and will likely get higher in the future as we focus on bigger properties.

Average days in inventory has increased this month due to the sales of some older inventory. 60 days is ideal, so hopefully we’ll have some quick sales in December which bring this average back down.

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 as an example.

The return on investment wasv62.48%, which is a really substantial return. What really makes this special though is the fact that we only held this property for 46 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 495.77%!! That doesn’t even take into account compounding profits.

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 495.77% 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 November 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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