With that in mind, Peter and his family had a decision to make. Ultimately, they choose to have us “Flip” the house on their behalf. And for the next 8 weeks, we worked side-by-side with our hand-selected Execution Team, to milk every last ounce of profit from the property.
When the dust settled, we generate five offers. Three of them cash. With the luxury of options to choose from, the owner selected the offer that provided the best combination of net profit and downside protection.
Speaking of profit … By choosing to “Flip” the property rather than “List It” or force an “As-Is” sale, we were able to increase the final sale price by a total of $130,000. In doing so, the additional “net to seller” was $70,000.
When you start throwing around numbers of that stature, it is important to scale down and put things into perspective.
Based on the investment the owner made into flipping the house, we were able to generate a 175.44% cash on cash return. Read that again …
One Hundred and Seventy Five Percent Return on Investment.
Think, for a minute, about how long it would take to make a 175% cash return using a traditional investment vehicle: savings account, CD, mutual fund or speculative stock purchase.
And keep in mind, we achieved this inside of a three month window. That means that if we were to calculate the annualized return, it comes out to 700%!
While returns in excess of 100% are not uncommon, the Elite Investor knows that long term wealth building comes not by way of swinging for the fences but by focusing on hitting single after single.
Small wins, consistently, compounded over time.
That being said, when you execute the fundamentals, with precision, “home run” possibility is always on the table. It is the type of opportunity that opens up for anyone who is willing to play the Game of List It or Flip It.
While the property transformation itself is often profound, the formula itself is not complicated.
It just requires a slight shift in mindset.
Like we tell clients all the time, you don’t have to know how to be a real estate investor — that is where we come into play. You just have to be willing to think like one.