In this instructional video, Joe Homs walks new and seasoned real‑estate investors through the entire process of flipping a house profitably. He begins by motivating viewers with the promise of financial freedom and then outlines how to locate undervalued or distressed properties using various lead sources such as absentee‑owner lists, divorce records, and cold‑calling or texting campaigns. After a property is identified, he explains how to compute the total acquisition cost—including purchase price, closing fees, realtor commissions, escrow, and title expenses—and the full renovation budget. He then shows how to determine the after‑repair value (ARV) by consulting recent comparable sales on MLS or sites like pelago.com, adjusting for market changes over the renovation period, and selecting a pricing strategy that places the flip slightly below the highest‑priced comparable to attract buyers. Using a concrete numeric example ($100k purchase, $50k rehab, $200k sale), he demonstrates the calculation of gross profit and then subtracts commissions, closing costs, and other fees to arrive at net profit. Throughout, he cautions that flipping is risky, urging thorough research, accurate cost accounting, and collaboration with experienced professionals. The video ends with calls to like, subscribe, watch a related profit‑showcase video, and schedule one‑on‑one coaching.
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Are you ready to learn how to turn a rundown property into a beautiful home and make some serious cash in the process? Do you dream of being your own boss, working on your own schedule, and building a real estate empire? Well, you're in luck because today I'm going to show you how to calculate that profit when flipping houses. So get ready to take some notes because this is the start of your journey to financial freedom. Welcome back to the channel. I made this channel for the new and experienced investor. Those of you who want to live the life you've always wanted through real estate. Make sure that you like and subscribe and share this video with your friends. So the first thing you need to do is find a property to flip, and there's many different sources to finding properties. You can pull lists, absentee owners, out of town, people that are renting. Just, there's so many different lists— divorces, There's so many different lists out there that you can pull and then you can start a texting or a— after skip tracing it, you can start a texting campaign or a cold calling campaign. What you're looking for is an undervalued or distressed property. Okay, so it could be both. It could be distressed in that it looks like a hoarder house inside. It could be in a neighborhood that it was rented out for a while, the renters moved out, some neighborhood kids came in and did a lot of vandalism. It could be anything like that, or it could be distressed in, let's say, they can't afford the payments anymore. There may be loans on the property. There may be a chance for you to ask for some creative financing from the seller. So those are the type of deals that you need to be looking for. Do you like these type of videos? Do me a favor and hit that like button. Once you find the property, you need to calculate the total cost of buying that property and renovating that property. And, and also make sure that you include your closing costs at the end of the day. So those could be realtor fees, escrow, title, things like that. You want to make sure you calculate that and you calculate that correctly. After renovating the property, now it's time to sell. It's time to go back on the MLS or wherever you're getting your sources for the after repair value. You can go to pelago.com and you can get some really good after repair values there in California, Washington, or even Florida. So once you establish what the new after repair value— because Let's say it took you 3 months. The market may have changed in that 3-month period, so you want to know what the new values are. Once you establish the new value, what I usually like to do is figure out which was the property that most compares to mine that most recently sold. Then I look on what's on the market and I try to price my house that I'm flipping a little bit below of the highest priced home in that same area. That's a— that's pretty much a model match to mine because I want people coming over to look at my house. First thing that people look at is price, then they look at the condition of the house. So if they look at mine as the best price and mine is also the best condition after rehab, then they're more likely going to come to my property and buy mine. Once your property is sold, it's time to figure out what your gross profit is. So your gross profit is going to be your purchase price plus your rehab, then you're going to subtract that from the sales price, and then that's going to give you a number. So for example, if you bought it for $100,000, you put $50,000 into the rehab, and you sold it at the end of the day for $200,000, that means you made a gross profit of $50,000. Now on top of that gross profit, you want to make sure that you calculate in commissions, closing costs, title fees, all that stuff. And then after you subtract all that, you're going to come up with a number which is going to be your net profit. Congratulations, flippers! You now know how to calculate your profit when flipping houses. Remember, flipping houses can be a risky business, so it's essential to do your research, calculate your cost, and work with experienced professionals to ensure that you always make a profit. If you have any questions or comments, leave them down below and don't forget to subscribe. If you want to see how much profit as possible, click on this video right here. I made $300K from one flip. If you want to schedule some time with me one-on-one, you'll find my information below. As always, I'm always here to help.
