How I Made 300K Flipping One House

Flipping a house can be a significant way to make a great profit. I'm going to share my story on how I made $300,000 flipping one property. It was a culmination of experience, market timing, and luck. Hi, my name is Joe Homs, and I flipped hundreds of homes here in Southern California. I have over 40 years of experience. I've been a broker, mentor, and investor, and I want you to like, subscribe, and share this content with your friends. Okay, so one of my cold callers was calling literally out of the blue, called the seller. Seller said, oh, I don't think you can help me. My property's being foreclosed on in 5 days, and I've already talked to a real estate agent. They said there's nothing I could do. It's going to get foreclosed on. So my cold callers are trained to let me know of these type of situations. They said, we can help. And so then I ended up calling the person and he ran a story by me and I said, oh, I can help you. How much do you want for your house? $750,000. He owed like $550,000 on the property and the property was worth around $900,000 or so. So anyways, the first thing I did, which is what I always do, I had the seller call the bank. Remember, the bank is not going to talk to you. They only talk to the seller or the person that has the loan on the property. Called the bank, said, hey, we have a contract which I put together. We have a contract. Can you postpone the sale for a month? Which is what they do. So the bank said, sure. The bank doesn't want the property back. They don't want that headache. Okay, it's more of a headache for them to take the property back than it is just to sell it. The bank was not losing any money at the $750,000, obviously, because I told you before, he only owed $550,000. So it was just a matter of, okay, 30 days, send me the contract, which is what the bank said. So we sent them the contract, we opened up escrow the next day. Bank got all that information, so they knew that we were serious. about buying this property. We end up going into escrow, we end up closing in a normal period of time, save that transaction, okay, save $200,000 for the seller because if he was foreclosed on, then he would have ended up losing that money. So in the, in the contract, the seller wanted to stay for 30 days. And I've had this situation happen in the past. And so I said, okay, you can stay for 30 days free, no no rent, free for 30 days. However, I need to hold back $20,000, which I thought was enough. $20,000 in escrow in case you don't move out in 30 days. So from day one to day thirty, that's your money. If you move out, it's yours. Escrow is going to send it to you on day thirty-one. It's not your money anymore, it's mine. Day 31 came by and he didn't move out. So escrow sent me the money the next day. It took me probably another 5 months to get him out of the property. Understand, this is when the market was literally starting to go up like a rocket. Okay? So for me, waiting 5 months, it was not a big deal whatsoever. That's right. I mean, the property was just literally going up in price as we sat there. I did not want to evict him from the property. The reason why is because if I were to evict him and he's trying to find a rental on the other end and that landlord found out that he had received an eviction, he was going to tell him no. I mean, you've been evicted from this place, why would I rent you this place? Do you like these type of videos? Do me a favor and hit that like button. So I didn't want to do that. I just literally Called him every couple of weeks, hounded him, you know, when are you moving? When are you moving? Until he finally moved out of the property. He moved out of the property. I went in and did a really, honestly, a light rehab. I normally do full rehabs, but in this situation, the market was just still shooting up. Anything that I was listing for other clients or listing for myself on my flips, we were getting offers within hours. Wow. We were getting over asking. We were getting, here's the money, we don't want to do inspections or anything else, we just want the property. That's how crazy it was getting and it got. So that's the same thing that happened here. I put it on the market for $1.1 million at that time and we ended up selling it for $1.3 million. No inspection, just literally, here's $1.3 million, we're going to close and And move on with our life. And I did too. So that's— I ended up making about $300,000 on that property, purchasing it at $750,000, putting about $50,000 into it, brought me up to $800,000. And then there was some commissions and closing costs at the end of the day. So I paid all that stuff and then basically pocketed around $300,000 on that property. So that was really kind of timing. Uh, for that one as well. I hope my story will inspire and guide others who are interested in flipping houses and making a profit in the real estate market. It's important to remember that flipping a house is not a get-rich-quick scheme, and it requires a lot of time, effort, and capital. However, with the right approach and a bit of perseverance, it is possible to make a significant return on your investment. I hope you found my story informative and helpful. Please feel free to reach out with any questions. I'm always here to help. Give me one.