Luxury at Scale: Flips Generate 6-Figure Returns

Okay, we are getting started here. Super excited about this morning's webinar that we're doing. We've got already people joining us, which is really exciting. Just waiting for everybody to jump in.

Hello.

Hey honey, how are you?

Good.

Trevor will be here in a minute. Okay.

I was just about to text him.

Hello everyone.

I haven't seen the slide deck for this.

I haven't seen it either, but I did send him the 7Streams logo picture or whatever. To make sure he had that in there, but I haven't seen it. I haven't seen the song. He said it's short. How's everyone doing today? Hey Tommy, Laura.

Says he's logging in. Okay, we got lots going on and looking looking forward to this. So many deals happening. It's awesome. Laura, you raised your hand. Joseph, we're happy you're here. Be sharing the 7 streams of income in Investor Club, and we've got so many things to be sharing. But I am excited about today because what today, again, it's just, it's another revenue stream. So it's Luxury at Scale. So flips that generate 5-figure returns in under 90 days. And so Trevor is coming on and really excited. To have him coming on and sharing his expertise. We've all done versions of this. Tommy does the land entitlement, which again is a piece of this. I've done the fix and flips on the back end, which are the flipping females from beginning to end. So I'm excited to hear from Tyler about the 90 days.

Tyler or Trevor?

Sorry, too many T's.

So I've actually done, I've done my fair share of high-end flips. And I choose to work on dirt. It's a little bit longer to get money, but to me, the returns are higher. So, but I, again, high-end flips are another way of generating capital and no, there's no better way to do a— cause honestly, high-end flips, what they, what they need done work-wise on that scale, you're spending a lot of money to get it done, but the returns are high enough to where it's like able to accelerate and have velocity of capital happening.

So, sorry guys, I'm not sure if Trevor's having Technical difficulties. What's happening?

Oh, it's like spinning or something.

I don't know. He's not here, so I'm—

Tommy, can you tell us a little bit about like when you say that land takes longer and all of that, like what you mean by that, but you feel like it's a higher return? You like an example of that?

So on a, on a, on a standard 5-acre property where we split it into 4 and get it ready to build houses on. Right. I'm having to go through the entire process. So there's 9 months before I can see a dollar. So to invest in land, you gotta be willing to go 9 months before you see an income of any kind. Whereas on a fix and flip, like a high-end fix and flip, we buy the house for— right now I've got one that we're working on through Deal Hunter. And it's a, it's a— let me see here. I'll pull it up. So I just got sent this morning. Guy wants to come over and have us come over and look at it. And the nice thing is it's literally in my neighborhood. It's around the corner from the house we live in right now. Out. So it's pretty, but it's old. It's dated. Cute little backyard. It's got the swimming pool fence in, which those are now no longer an issue. You no longer have to have those, but the outdoor area looks beautiful. And so probably needs, probably needs a new roof, probably needs new paint, definitely needs new interior because we looked at that. We're going to go look at it later today. This house right here is what we would call a high-end flip. The list price on it, $750,000. The guy's telling me he's got it under contract for $725,000, but there's a comp in the area that shows it They're selling for between $840,000 and $1.1 million. So there's a possibility there. We could go in and take a look at it and look around in there and see if it's, if it's an opportunity. But at the end of the day, if we, if we bought it with 20% down, that's $150,000, spend another $150,000 to get it whacked into shape. We cash in at $300,000. If we sold it for $1 million, we bought it for $725,000 with $300,000 in, we only gotta pay back the $600,000. So total on that would be $900,000 and we sold it for $1.1 million. So there's $200,000 of margin there. That could take us maybe 3 months, 4 months to do the full rehab, right? So on this deal right here, let's do a $300,000, $150,000 rehab budget and a $150K down. And we sell for $450 a square foot after remodel. What is the C on C return? Cash on cash return. So this is, this is why I like to use Deal Hunters, because I can, I can do the math faster. 9 seconds, right? It's telling me in 9 seconds that if we sell it for $450 a square foot, we're at $890,000. So our cash on cash raw profit is still under $10,000, right? So I need to, I need to figure out how can I get more money off of this deal, right? If I have a negative cash-on-cash return, that's bad news. It's a no-go on a $450,000 per square foot. But what if I say, okay, I want to sell at $575 per square foot. The math alone on how long it would take me to figure this out, sitting back and redoing my numbers. Now it shows me that I'm at that 1.1 that I was thinking of, right? And what I'm gonna be able to do now is a 24% cash-on-cash return, which when you're looking at the money coming back in your pocket from doing this deal, you're going to have a total cash invested of $367,000. You're going to get an estimated $90,000 back, right? So you're putting $150,000 in for the rehab. You got selling costs, buying costs, all these things. These are the things that you can do fast now. And so $150,000 is a, is a pretty decent budget for this area. You want to estimate somewhere around 10% of your, of your cost. Or if you're at a million, you're going to want to spend at least $100,000, right? To get it fixed up. If you're after repair value, your ARV, but it looks like Trevor's here. He's probably got some info on that. He's an active fix and flipper. I'm retired.

Cool. So super happy to have you here, Trevor. Tommy, thank you for sharing. This is exciting. We've got several guests in here. So anybody on our team or in our mastermind, if you want to come on the screen, we'd love to see your beautiful faces. Otherwise we'll put you back to the attendees list. And Trevor, really excited to have you be sharing this morning with us. Tommy, if you want to, if you're done sharing your screen, we'll have Trevor bring up his screen and share it and take us through. This is very exciting.

That's what I get for being late. Tommy already showed me up on Deal Hunter because these are all properties that I did prior to learning Deal Hunter. So I will, it's good that I heard that because now I can relate how I would do things differently and how Deal Hunter has definitely helped me to shorten my time.

Okay, Trevor, this is all yours.

All right. Can you guys see my screen? Okay.

We can see it perfectly.

Okay, perfect. So I'm going to skip all the hoopla. We're going to go pretty much straight into 3 different projects that I've done in the past, break down what we underwrote them at and what ultimately happened and just take you through what it's like in my life underwriting deals and looking at fix and flips and all that fun stuff. So just real deals, real budgets, no, nothing big, but we'll share some of the surprises and what it feels like to walk through an actual fix and flip project. You can look all these up if you want to follow along and you can, you can fact-check me on these to make sure these are actually projects I've actually done and bought and sold. So without further ado, we'll move on to slide number 2, if I can figure out how to work my own PowerPoint. There we go.

All right.

So this was actually my very first fix and flip project with a partner. This was in Palm Coast, Florida. It's in Northeast Florida, just south of Jacksonville. Like I said, you can look up that property address and fact-check some of this stuff if you, if you really want to, or you can just take me at my word. This was prior to really knowing anything of what I was doing. Came across this property, think to Facebook Marketplace. I was actually in the market to try and do some lending. That's what I was primarily focusing on at the time. I was not a fix and flipper. I would lend to fix and flippers and I would lend to other wholesalers trying to get properties under contract. And just so happened to luck upon this property, 37 Bassett Lane. It was your basic 3/2 cookie cutter house. It was like a 1990 build. Everything was pretty much original, but everything was still in really good shape. So when I first looked at it, I'm looking at it with an HGTV lens. We're going to open up this kitchen and do all this fun stuff. And that's actually how I negotiated this deal. They wanted about $350,000 for it, which was what the average ARV was for a house, 3/2 similar size with a pool that was, that was fully renovated. They were again, about 25 years behind the times. So negotiated down. We did purchase this at a $225,000 cash purchase, which I utilized private money for at the time. Did not have a hard money lending contact. So we had a private money lending contract that would fund 90% of the purchase price at 12% interest, simple interest, over a 6-month term, and actually would allow us to pay that 6 months of interest off close, which was huge for me on my first deal because I really didn't have a whole lot of money to utilize. So we put that on the backend, and then I went and got another private money lending loan from a family member for the 30%, or excuse me, for $30,000, and told them in 6 months I'll have your money back to you. With 10% flat. Didn't really have much credibility, so I went to, again, family members who knew me already. So I was able to finance that deal with $0 out of pocket. So that got me the other 10% of the purchase price, the closing costs and everything to close, and had a little bit in reserves left so that I could pay the utilities. And then I actually financed some of the rehab on credit, which I'll get to here in a minute. Total rehab budget. You may have heard me talk about the rehab for this. We had talked about doing full overhaul. My partner at the time really said, hey, this house doesn't need a whole lot. Maybe some paint, maybe some cleanup. Oh, the AC is pretty old. We could replace that. But I think honestly, our ROI on spending a ton of money on the rehab, on rehab and fully renovating this thing, we're still not going to get much higher than the 375. So we did some math, we did some calculations, we did the bare minimum of this. We did a new AC, we painted the interior, we painted the exterior, we took the trash out, we cleaned up the pool, we had a new pool pump. Some minor electrical updates so that everything was up to code for like GFCI in the kitchen and the bathrooms. And then we staged it. So it staged really nice and basically set this out as a vision of somebody else that was going to want to move into this house. Maybe over time replace the floor and replace the kitchen, but everything was fully livable, actually still in pretty good condition. So that was the plan of attack that we had figured out. Our projected net profit is about $50,000, give or take a little bit. 100%. So we bought that deal, closed on it in October of 2024. Some issues that we hit, we were under contract to close, um, but old Florida hurricanes, late season Florida hurricanes hit. So we were actually supposed to close on Thursday. Well, we couldn't get insurance with the pending hurricane coming over the weekend, so they actually delayed our closing until Monday. And in that delay, we actually found out that the pool actually overflows, and when it overflows, it actually wants to run into the sunroom on the property. So we had some issues there. No big deal. Face that. We actually bought some pool pumps, which the previous owner alluded to afterwards. They couldn't really hide that anymore. Said, oh, when hurricanes come, we actually set up an extra pool pump and we pump it out into the side yard to avoid the pool from overflowing. We, the narrow miss there. Closed on the property, faced another hurricane, had to actively pump it out again. My partner was there, boots on the ground, helping me do that and sandbag and make sure that we didn't get any other water intrusion into that into that back room. We did have some minor remediation, but really didn't cause any issues with flooring or mold or anything like that. We got to that very quickly. We did the rehab, as we mentioned. We did go over budget a little bit. We actually ended up using $19,000 for, again, those previous items that I mentioned, which was paint, interior, exterior, trash out, AC, minor other things. Nothing major that we uncovered. We did all that rehab in about 45 days. And that was mainly due to the hurricane. Otherwise, this was like a week, 2 weeks tops with paint, trash, all that. Now, the way we run our crews now, we would've had that back on the market within the month. So we did have some minor holding costs there. Selling costs, we did have a minor commission we had negotiated with the agent and actually only ended up paying 3% in terms of— sorry, that says concession. I should say 3% plus commissions and then our other lending. So we had our lender interest, which you'll remember, which was 12%. Simple interest. The terms we had with her were no less than 6 months. So we still paid her 6 months of interest, even though we closed right at the 3-month mark. And then you'll remember we had borrowed $30,000 for the gap lending. So we paid them $33,000 back. We ended up selling for $350,000 and our net profit at the end of it, I actually went back and looked at the settlement statement, was $44,000 at the end of it. And the reason I put infinite ROI, you'll see me put that on a lot of mine because my goal is always to be no money of my own into the deal. I leveraged two different private lenders for this to get them to get it fully funded. And then we funded the rest on a line of credit. So we paid that back within the timeframe and really didn't have to make any other major payments on it. Three months start to close from when we bought it to when we sold it. We actually sold it on December 30th, 2024, right before the end of the year. Biggest takeaway from that was budget more than you think. We didn't really put in any contingency because we had such a small scope of work. And in this instance, we were really able to get away with it. Didn't affect our net profit a whole lot. And would we have made a little bit more money on profit by not taking on a gap lender? Absolutely. We would've hit our $50,000 in net profit. But instead of having $30,000 of my own into the deal, which at the time I didn't really have to spare, I was very happy to take instead of a $50,000 net profit, the $44,000, my money was elsewhere. So you'll see later not writing in enough contingencies actually bit us in the butt on one of our projects. That'll be Property number 2, this is 1 Lakeshore Place, our full, our first really big full gut rehab. This one we actually found, it was long days on market, so we called the agent. They were really just looking to move it. They had gotten a lot of low cash offers, but it had actually been under contract twice and neither of them could perform. So we made a full cash offer. They actually covered the closing costs on this. So you'll see that I put in there $0 on closing costs. Oh no, I'm sorry. I'm actually thinking of a different one. Excuse me. This is our Novation deal. So forget everything I just said. 1 Blake's Shire Place was long days on market. We called the agent. They had pulled it off the market a couple of times, been under contract. People could not perform. They had put it, they had recently just put it back on the market. But the problem was this lady had basically acquired this house from her ailing aunt about a year prior, and it needed a full gut. We had then basically She had no money into the deal, so she went in, she moved into it, and then she was trying to live in flip. Older lady, she was hiring out everything from basic handyman. She actually overpaid rather drastically. She paid $50,000 for an AC unit, and this is a 1,900, 2,000 square foot house. So that's drastically overpaying, like 5x what she should have spent, but they sold her on a UV filter and all these things. So basically, she had gotten to the point where she was renovating this house, She was out of money. She was out of patience, was the biggest thing. And she just wanted to move home. She had this big, beautiful home in Hilton Head, South Carolina, she wanted to move back to. All these people had offered her $200,000 and $210,000, which was actually our cash price was $210,000. She wanted at least $240,000 to $245,000. We worked out a deal with her called a novation. Basically, we went to her and we said, we'll give you the $245,000, but you need to allow us to put this under contract, give us power of attorney, allow us to complete the rehab. We'll put our own money into finishing this house. Because all it really needed at that point was outside. The interior had been freshly painted, it was actually still in good shape. It needed flooring and it needed a master bath renovation. And then we actually added on, so you'll see we ended up still doing some tile work and doing the full master bath shower. We updated some electric in both bathrooms. Again, we added privacy fence, replaced the flooring throughout, and then we ended up finishing the front entryway. So all in, we scoped this at about $30,000 to $35,000, which we thought was Plenty to get this done. So the reason we had no closing costs was because we didn't actually close on the house before we started renovations. We negotiated with her that she actually had to move out of the house and we had 6 months to renovate, list, and sell the property. And then when we sold the property, we would pay her $245,000. Anything above and beyond the $245,000 was ours to invest. What we did is, and I'm sorry, 'Our projected ARV, $350,000. Projected net profit right at $40,000, and I'll explain how we got there in a sec.' So she agreed. We went through an attorney. We got legal paperwork, a contract for sale agreement signed. We had a novation agreement signed, and we had a power of attorney signed. The reason for that being, we never transferred ownership over to us, so we didn't have to actually close on that. So that saved us hard money loan costs, that saved us closing costs. So it's a very creative way to still do this. Had this been a house where it needed $100,000 of rehab and like a heavy 4 to 6 month timeframe, we wouldn't do this type of thing. Relatively, because it was a low barrier to entry, we were sure that there were no structural issues, no big surprises. They had already opened walls. They had already done a lot of things. It just needed somebody with a cash infusion to come in, finish the rehab, and let this lady sell it for the $245,000 that she was really wanting. And then she didn't have to take that $210,000 cash offer that we were selling to. She waited a couple months longer, but she actually got the money she was hoping to get. Our actual rehab budget, we ended up spending $39,000. We held it for about 3 months. So we did have some holding costs. We took over the insurance, we took over all the utilities during that time. And we gave her some money to actually move out and move. She moved right next door, which proved to be a little bit more of a problem. She was overchecking on the project like it was her own every day. And then of course we listed and we incurred the cost of that 5% commissions and all the closing costs. We brought in a private lender for this one as well. We borrowed $30,000 from that same gap lender from the project before that I mentioned, and we paid them $33,000 at the end of the agreement. We did end up listing and selling. It was listed and sold fairly quickly on the market for this one too, because it was in a highly sought-after area. It was newly renovated, nice, sold it for $350,000, and we made a net profit right at that $33,000. Again, I put infinite ROI because again, I had no cash into this of my own. We borrowed it all. And thanks to the creative structure, we really didn't have to do a whole lot in terms of hard money loan costs. We didn't— hard money lender, we were having to pay monthly. So this was one of our most profitable and quickest deals. The only things I'll say that we hit, we did hit some issues with demoing some front tile work. We initially thought we were going to leave it, but we ended up having to bust that up and had some concrete issues underneath. Had to fix that. That's where some of our increased costs came. We had to upgrade some more electrical and run some more wiring. Got expensive because we had to run it all the way from the box. Out to that bathroom. And then initially I will say seller objections to innovation. The lady was very like, what do you mean you're going to come in and renovate my house? And why won't you gimme the money now? And then you take on all that. Well, I said, well, it kills the deal. If we had to incur a hard money lender points, fees, title closing costs, again, that $33,000 in net profit would essentially have been wiped. So it really didn't work. And that's why our cash price was $210,000. We had to build in margin for That's where this creative structure worked, but it took a lot of building rapport with that seller, with the agent, and with our agent as well. Because at first our agent was like, can you guys really pull this off? I had to reassure her. So we did leverage some of our own labor in this to keep our costs of demo and tile down and even a little bit of fence work. And then again, we went through a lawyer to get her peace of mind, of course, which I always recommend. Lawyer, title company, real estate attorney that can draw up the proper paperwork for you, especially in this instance. It was a little bit trickier of a close than just your normal cash purchase. So big takeaway here was don't be afraid to get creative with the acquisition. The seller wants a higher price and smaller amount of rent as needed. Keep this in your back pocket or always reach out and negotiate it. But it was a creative way for us to get the seller what they wanted, to get what we wanted, and ultimately less cost and fees. All right. Last and most recent project. This one is an Orlando project. It's actually just a couple houses down from my house. This lead came from an off-market lead. It was a pocket listing from the next-door neighbor who let me know this person was about to list their house. We got in touch with initially the homeowner and then got passed off to the agent that they had just signed a contract with. We're trying to keep the agent out of it, but it ended up becoming a diamond in the rough. Agent was amazing. We have since worked with him and he's brought us a couple of other pocket listings off market that's led to some other great deals. One we're about to list tomorrow. So it was working with agents at first, I didn't like it. And now I've learned to actually love it because they're a recurring deal source for you if you take care of them and work with them. Good communication. So we negotiated the price on this. He initially wanted $400,000 for his house. ARV's about $560,000, $570,000 in this neighborhood. Really good neighborhood, good schools, good HOA with deed access to the lake that's nearby. So originally I, we met the agent, we walked them through everything that this house needed. It's a 1982 build that was almost all original windows, original drop ceiling, very partitioned off, very sectioned off. So two formal dining rooms that were essentially not being used. And left for like this little small living room, very closed off kitchen again with that drop ceiling. So we walked them through what we would do. Totally gut the inside of it, open it up, do all new windows throughout. Needed a new AC unit. It needed new flooring. It needed a master bath renovation like no other. And then the backyard, this sat on almost half an acre, but it looked like a third of an acre because it's a very large oak tree in the back that had really never been trimmed in the last 20 years. Where the branches were growing down, touching the, touching the floor. This is a massive tree, so much so that when we first walked the house, couldn't see the back fence. Well, the back fence had fallen down. Underneath the tree, there was hidden a tire swing, there was a full-size trampoline, full-size trampoline, and a kids' playhouse that was falling down. I had no idea that we had inherited any of that when we bought the house until after we had closed and we went back and we walked actually underneath the tree. I used to call it the secret garden, but the kids knew it because that ultimately ended up being the biggest workload. It took me little by little, fucking away at that tree and getting rid of some of that. And I'm fully restoring the trampoline. I want, because that trampoline sits in my backyard, but very large scope of work on this, which I admittedly under budgeted. I live 4 houses down. I'm going to do a ton of this work and I'm going to keep our budget way lower than what it really should have been. It should have been closer to $95,000, almost $100,000. I was like, oh, I'll just put a lot of sweat equity. Well, I didn't quite do all that. You'll see here in just a minute. So we negotiated the purchase price down, as you'll see, $345,700. Why the weird number? Because I'm weird like that. The agent stopped in his tracks and it stopped him in his negotiation instead of trying to continue to go back and forth with me. And he's like, this guy threw out a really odd number. He must have a reason for it. And they signed on to my price then. So closing costs. 2% commissions to the agent were part of our negotiation factor too. Actually got the agent on our side by saying, hey, your guy was only— it's your friend. He was going to pay you 1.5%. I'll pay you 2% and I'll let you relist it. Will you do that? Oh my gosh. Amazing. I'll only charge you 2% on the relist for us as well, which we still have that in place today. He relists all the markets for us at 2%. It's fantastic. We bought this one on hard money, 90% of the purchase price and 100% of the rehab. They held that 100% rehab back in escrow, which we took in draws as we completed the work. And just like all of our other flips, I went out and I got a gap lender, private capital for 70% $100,000 to fund the other 10%. I actually over-borrowed so that I could then fund all of my hard money loan interest for 6 months, all of my utility payments, everything that I would need so that I was $0 out of pocket again on that sitting in escrow waiting so that I could pay that down as we went. And no days on market because we actually purchased this one off market from a pocket listing. Went over some of that scope of work. I scoped it at $77,700. Full gut rehab, rubber flooring, knock out interior, mom and dad's bedrooms, renovate the kitchen, all new windows throughout, full master and guest bathrooms, new toilets and vanities, significant landscaping, repair the fence, new AC, new doors, trim, sliders. Everything you could think of in this house minus the roof pretty much was— the electrical was updated, but we still— our panel, our panel was actually okay. We didn't end up having to run some. So we estimated to sell this house at $560,000, net profit of $57,000. What I will add, and something that a lot of newer flippers, wholesalers, agents even will look at and they'll say, hey, you could sell this house for $560,000. We were buying it for $345,000. You're putting $77,000 in. The math doesn't math. How are you only making $57,000? When I see so many wholesalers, they'd be like, oh, you can make $150,000 on this house. It's like, no, you have financing costs, you have closing costs, you have commissions. All those people have to be paid. You got to factor that into your costs. And that's a big thing that early on I used to miss. If you've never done it, you really don't know. But going through that process again and again, I realize how many hidden costs there really are in there that if you don't factor in, you get to the end and you get bitten. Let's go on to this project and we'll see what actually happened on Windward. Well, the main unit of the AC actually sat upstairs. It was an older unit. It needed to be replaced. We could not get that down through the rafters, so we actually had to rip through them, get that unit down and replace it. So that became a burden, that became extra cost. Because we got in such a hurry to rip out the drop ceiling and re-drywall that we put new drywall up that we then had to tear down and re-texture and redo it. So that was an extra cost. The window permit. So the window permit for the city of Belle Isle, which is this very small section of Orlando proper, became an issue with the municipalities and the permits. So that took a lot longer. The window costs and timeline. This was the first time I'd ever budgeted for windows and so many large windows in a house of my own. So we budgeted for about $7,000. Well, all in, that actually went for almost $11,000 all said and done. And then we rounded up replacing other sliders and doors. So that ended up increasing the cost there too. So not only did the timeline go longer, but we spent more money. And then again, the increased electrical cost. When they did the drop ceiling, for some reason, they actually ran the electrical underneath the rafters into that drop ceiling and then back out again. So once we ripped out that drop ceiling and re-drywall, well, in order to drywall against the rafters, we actually had to take all those wires, essentially do a full box rewiring, and then run those over the top. And I got charged for essentially an entire, uh, repanel, which I didn't know at the time either. So again, incurred more costs. How did we overcome them? Well, patience was a big thing. Luckily, our window contractor had a GC that was willing to sign off on the permit and they got us through the permitting process. We delayed an extra month because we were waiting on the windows to come in. Um, increased personal labor, even though I promised to keep that cost down, I still had to put in a lot of the labor costs. At the end of it. And we use private capital, obviously, to leverage some of that credit. And then I use a lot of personal credit to get through this. Because like I said, the budget we did was $77,700. We spent $106,000. We spent $29,000 over budget. We sold it for a little bit more than what we had expected. So that did help, but ultimately we did not hit our net profit goal on this one. We only made $34,000 where we were projecting to make like $56,000. You'll see where that kind of played into it. Our timeline ran longer. We still closed just over 6 months. We were like 6 months and a week. So big takeaways for this one was scope of work, accurate quotes before doing it. I cut corners a little bit, didn't get all the proper quotes that I needed before signing off on the budget. And also I didn't factor out enough of the contingency budget. Also for this one, I learned the importance of hiring a project manager or a contractor to see things that I couldn't see. I'm a realist. I'm not a contractor by trade. I'm a healthcare professional. I got into this a little over 2 years ago., and I had always discounted, said, oh, we can learn as we go. Luckily this one didn't bite us too hard, but we just didn't, we made less of a profit. But I will never do a large project like this again without a project manager and/or a contractor, especially for these larger scopes where sequencing and lining things up is well worth the money spent. I would've, I would've paid a contractor $15,000 on this, but it probably would've saved me $15,000, $20,000 and a lot of time on a lot of those. Those are my 3 properties that I wanted to present to y'all today and some of the key takeaways. Again, always budget for a contingency. You always want to budget for at least 10 to 15% over what your scope was. For this one, it would still wouldn't have saved me, but it would help. Relationships save deals big time. City contacts, inspector relationships, lenders, trusted lenders, and contractors and project managers. You want to vet your contractors ruthlessly. A GC can walk off your project, cost you thousands, and then you could go find a new one, and they can put a lien on your property. You want to always see, hey, their references. I want to require them to sign off on lien waivers so they can't come back later at closing put another lien on there and never pay 100% upfront, meaning pay them as they go, pay them for the work that has been completed, not for future work. I've been burned by that as well in my own personal— you always want to underwrite conservatively, whether that's for your rehab budget, but also your ARV and making sure that you can really underwrite properly. Because sometimes these big rehabs look like, oh great, the HGTV projects, we're going to gut everything, we're going to make it all nice and new, which is fantastic. But what that does is it increases your project timeline, increases your budget. Anytime you increase both of those, there's more room for error. So you open up a wall and there's mold or something's falling down, you gotta, you gotta add in new things. It's going to increase your cost even more, increase your timeline even more. What can happen in that 4 to 6 month project? The market can vary, as we've seen, take big shifts and swings in the 4 to 6 month time frame. So that $560,000 ARV could drop to $500,000. All of a sudden you're negative, you can't pay back those other lenders. So then you are having to come out of pocket for those things too. So definitely want to be conservative when it comes to that. That's all she wrote. Any questions?

This is really great. I was going to say, Joseph said, do you get before and after pictures?

I do. I'm more than willing to share those. And if actually what I'll do is I'll direct you to my social media because two of these three projects, the very first one is not on my social media because that was before I was broadcasting that I was doing fix and flips, but I have a lot lots of before and after photos of this last one. I do reels. My kids are there. You'll see us actually ran through a wall on this project, which was fun. We had a really good time. So anybody who knows me has seen my social media.

Great. I think also just thank you for sharing a lesson. I would love to see that.

So thank you for this. So many stories. We could talk for hours about fixing and flipping and all the things. And I would say going back to a couple of things is doing it yourself. I would definitely make sure you have the whos that know how. I wouldn't advise anybody doing this on their own right out of the gate. No, my— I've done over 500 fix and flips, and again, we built a team with all the whos that know how. And some of the things that were super painful were having contractors, and that was like making sure contractors are licensed, insured, bonded. I'd say that, Tommy, that's a huge annoyance is when we see contractors out there working contractors, but they're not licensed, which means they're not insured or bonded, which means the people aren't protected. Yes, they may be getting a better price, but at a huge risk. And we can go through all those stories. So again, the whole purpose of Seven Streams, Seven Streams Club, is literally to show people all the different asset classes that are available and making sure that your asset classes are diversified. So a couple of them that we've already gone through is Airbnbs, investing in the film industry, which again, that was a whole very fascinating thing. And we'll have videos that you can go back and you can watch these. The— this is the Luxury at Scale, so doing fix and flips that you can have 5-figure returns. We are doing a luxury fix and flip here in Scottsdale and doing several more. But again, it's because we put the team together to be able to do these things. So we have this again on Thursday. Next week we're going to be going through another asset class, which is actually car rentals, and doing it at scale, which we're really excited about. So if you've heard of like Turo or anything like that, we're going to show you literally how to create, generate revenue, passive income with that, with the who's that know how. And then we're going to dive into the week after that, pad splits, and then residential assisted living the week after that, which all leads into our 7 streams of income investor clubs. So we're going to be launching that at the end of the month, which we're really excited about. So the reason we're showing all of these different asset classes is so that people will understand all the different asset classes that you have the ability to make sure that your portfolio is diversified into. This is really important as an investor for you to understand, a way to protect yourself and your family and everything that you're building. So that you are diversified and taken care of. And you want 7 streams of passive income to be able to mitigate against the 5 D's—death, divorce, diagnosis, downsizing, being dumped. Laura has put the registration link for all the webinars in the Zoom chat here, so we invite you all to get registered for that and share them out. And get ready because we are going to be having a whole informational meeting at the end of this the end of the several weeks to invite everybody to be a part of the actual club. And it is a closed club, so you need to be— it's not going to be an open thing. So once it's done, it's done. So we want to make sure that you have the opportunity to come learn about that and potentially be a part of it. So with that, I just want to— Trevor, thank you for walking through this. And just like Joseph, I really wanted to see the before and after pictures.

I'll bring, I'll attach some for the one on Thursday. So if anybody wants to come back and see them, I'll send some before and after pictures for, I think I have all of them except for that first one. The first one we were ill-equipped.

I love it. Okay. So Joseph, come back on Thursday. You can get yourself registered down below because we all want to see the befores and afters. They're going to be awesome. Definitely. So thank you everyone. Thursday, I'm hoping we'll have some more time to do some more questions. If you have any more questions about this, I always love fixing and flipping again. I think it's a huge consensus, like HGTV, there are so many shows about this. So it's one of our favorite things, I think, as people in the investing industry. So Trevor, thank you for this. Super exciting. And again, can't wait to see the befores and afters because again, picture's worth a thousand words. I hope you all have an extraordinary day and we will all see you tomorrow at Land Shark Mastermind to come and actually run some more deals and find these. And maybe even do some flips yourself with our team. So with that, thank you everyone. Have an amazing day. Bye-bye. Make sure you—

I wanted to make sure everyone got the right link because the link you provided was broken. Okay.

Thank you. Okay. So go to the link that Tommy created. Thank you, Tommy, for catching that. There you go. All right.

Then we gotta talk to Joseph cuz he wants to talk about— he's got a couple pieces of land.

Do we wanna jump over to thelandsharkmastermind.com/webinar? Because this is recorded.

I don't know if he's still in here or not, but we can either do that or just set up a meeting to talk to him.

Yep, he's here. So Joseph and anybody else, please, we're going to jump out of here and jump over to here. Joseph, I'm putting it in the— come on, everyone— there you go, in the chat for you. So everybody grab that and we're going to jump over to that one. Okay, bye everyone.

Go over to my7streams.org to learn more about the club.