Welcome to the September 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.
September 2022 Income Report – Total Revenue: $281,160.95
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.
Without further delay, let’s get into the good stuff.
Here are the September 2022 statistics:
Now for a little insight into the numbers.
Revenue for September is right around our average so far for 2022. Although I’d like it to be higher, it was a solid month all around.
The gross profit for the month was $147,107.00. That averages out to about $4,903.36 per day in profit.
The gross profit percentage for September was 52.32% which is above our target of 50%. I really want to keep this here or above in the future. It’s tough to double our money on every investment, but that’s always the goal.
This month we sold 5 properties. I want this number to be higher, but given the revenue and gross profit, I’m ok with this.
Our average gross profit per deal was $29,421.40 this month. I believe this is our highest average yet.
The sales this month averaged 96 days in inventory. This is higher than our historical average of 60 days and happened because we sold off 3 properties this month that were in our inventory for too long. Keep reading this report to see the deal by deal breakdown of each property we sold.
Lastly, we sent out 52,258 letters. This is right on target for our new strategy of building a higher quality list.
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 – Drake Rd
Deal #1 notes: We ended up holding this property way too long by our standards. In hindsight, I would have done some clearing on the property to make it more accessible for potential buyers. It was fairly dense brush which I think contributed to how long it was on the market. We also had to reduce this property a couple of times, so it is quite possible it would have been more profitable if we would have spent the extra money from the beginning to get that done.
Deal #2 – Chestnut Rd
Dea #2 notes: This was a really good deal for us. As soon as we listed the property, we found a buyer close to our list price. The buyer was able to close it relatively quickly and we ended up with a 220% return in only 45 days of it being in our inventory. This is a nice quality property with potential for a homesite or simply use as a recreational property.
Deal #3 – Cedar Dr
Deal #3 notes: This property took amost 6 months for us to sell. In hindsight, I wouldn’t have done this deal, but there there were a couple of complications that arose. There was legal access ot the property on the deed and on a survey. But, the neighboring home owner’s association placed a permanent dumpster enclosure right at the access point to our property. They were apparently unaware of the deeded access. This caused issues with showings and potential buyers backed away. As we were working to resolve this issue, a buyer came forward and offered a low price. This price would allow us to move on and still profit slightly, so we went for it. A 65.87% return in 6 months is still pretty good by any other standard, but this one was probably not worth the hassle.
Deal #4 – Bourbon St
Deal #4 notes:This is a very unique property and that is the reason it took so long to sell. 90% of the property was a pond with just a small amount of dry land around the perimeter. It was a beautiful lake/pond, but there is a very limited buyer pool for a property like this. I knew this was somewhat of a gamble, but I went for it anyway. I bought a similar property in 2021 that worked out great, but this one was just ok. We still profited over $7k, but it took 106 days to sell.
Deal #5 – Murphy Rd
Deal #5 notes: This property was a good deal for us. We found a buyer as soon as we listed the property for the list price. I knew this property would sell quickly because the area is so hot. We priced it aggressively so it was the best deal out there. Ultimately we profited $46,811 and only held the property for 41 days.
Year to Date 2022:
2022 Year to Date (YTD) Statistics
Another solid month brought our total 2022 revenue up to $2,502,496.06. That’s an average of $278,055.12 per month. At this rate, we’ll end up at $3,336,661.41 for 2022. I hope to far exceed that, but we’ll see how it goes.
Our gross profit of $1,138,207 is an average of 126,467.44 per month. At this same rate, we would end up with $1,517,609.33 in gross profit for 2022.
We’ve now accumulated 50 sales for 2022. That’s 5.55 per month and if we continue at the same rate for the rest of the year, that would be 66 sales in 2022.
The average gross profit per deal is where we’ve been hovering for most of the year. I’m anticipating that we’ll get some larger profit deals to bring up this average as we head into the final 3 months of the year.
Our average days in inventory is creeping up above 60 days now. My goal is to keep it below 60 days, so we’ve got some work to do in order to close out the year strong.
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. This was a very solid investment for us.
The return on investment was 113.41%, which is amazing in the world of investments. What really makes this special though is the fact that we only held this property for 41 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 1,009.63%!!
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 is1,009,63% per year called?
How can you do the same thing as an investor and get these kind of returns?
The first thing you need 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.
I 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 September 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 my past income reports:
- August 2022 Income Report $322,223.92
- July 2022 Income Report $495,885.83
- June 2022 Income Report $178,831.06
- May 2022 Income Report $208,782.57
- April 2022 Income Report $264,322.07
- March 2022 Income Report $479,193.91
- February 2022 Income Report $67,143.23
- January 2022 Income Report $204,952
- 2021 Year in Review Report