A few short weeks ago I happen to be gallivanting the Dallas, TX area with the red heads (for a friend’s wedding, slash weekend getaway) and happen to catch lunch with one Gary Grubbs.
Gary is a KISS Flipping success story who had just that day (right before lunch actually) closed his first ever deal – a textbook KISS flip in every way.
So what else could I do but whip out my trusty little flip video and coax him into spilling the story (yeah, I’m that guy who always has a flip video stashed in my cargo pants for just such an occasion 🙂 )
So here’s my “Splash N’ Dash” study vid with Gary “the Grubbmeister”. It’s pretty short. Please leave a comment below after watching. You’re crazy and I love hearing what you have to say…
Quick Deal Details:
- The Suspect: Gary Grubbs, Dallas, TX
- The Deal: “Joyce”
The Overview:
- Textbook kiss flipping deal in McKinney, TX (just an average market, nothing special)
- ARV: $99k-ish
- Purch: $51k
- Sold: $75.5k
- Net Profit: little over $20k
- Transaction duration: 2 months (Purchased 4/3, sold 6/4)
- Bridge Financing: Used hard money
Noteworthy Points:
- First deal ever
- In true KISS Flipping style, he focused on one specific school zone to find this (Big fish, small pond)
- Also exclusively used Realtor contacts for rehab
- Basically just made phone calls, invested maybe 10 hours or so ($2,000/hr or so, not too shabby 🙂 )
“Ahas” or “Gotchas”:
- Sell a better quality product than most are expecting, at below retail market value
- Next time, would analyze sales price a little better (left money on the table)
Next Deal:
Working his second KISS flip now (another textbook). Expected profit should have been $35k but looks like it will only be $20 due to mistakes estimating foundation and plumbing. (I’ll do another case study with him after it’s wrapped up).
NOTE: Gary is a KISS Flipper. KISS Flipping is a surprisingly straightforward, simple profit model for today’s house flipper. KF is opened again for a narrow window of time (just a few days). To find out more, visit KISSflipping.com.
Please comment below!
Great example . . . makin’ it look easy as pie.
Hey JP, Thanks for the video! The numbers sound a little off to me though? 25K spread minus realtor fees, foundation repair, paint, etc. and still cleared over 20K? How did he get around seasoning issues?
Hi JP
we have $51,000 purchase, 76,500 sale price.
what was his hard money cost? and how much did he spend on his rehab, he talks about foundation, carpet, paint and tear out. and he says he got a check for about 20K. so did the holding, closing, and rehab cost $5,500? great price. thanks Bill
Love the “splash n’ dash” concept…
Good job to the “Grubbmeister”!
Now that its been done this should be a walk in the park for you next time…
Scott,
Numbers really do work. I did not have to pay a realtor as a neighbor bought the house the first day I owned it. I only paid him 1K for taking care of the contract.
As far as the seasoning issue, it was not a part of this deal by Fannie. Some deals may not have that requirement.
Gary
Jersy Bill,
Bank paid closing and Hard $ was not much as this was a less than 30 day rehab & flip. Rather lucky than good….I will admit, my second deal is not that smooth. I tell you about that one after I close on it!
Glenn,
Wish they truly were all this easy. Not the case on my second one still in process. I will share my story on that one later if you are interested.
Gary
Gary,
Which hard money lender did you use?
Thanks!
Did he buy the house using the name of an LLC or in his own name?
How much EMD was required?
How did his HML pay contractors? Monthly draw?
Were HML interest and points rolled into HML funding or did he have to make monthly payments until sold?