Episode 3: The Mindset That Guarantees Flipping Houses Success

Danny Johnson / 4 comments

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Show Notes

Geremy Heath is the owner and founder of Texas All Cash Home Buyers. Texas all Cash is a residential redevelopment that turns around distressed properties for profit in the both the San Antonio and Austin areas. Since starting the company in 2009 Geremy has successfully completed over 150 rehab projects. Prior to this Geremy worked as a management consultant for over 12 years with Accenture who is one of the leading providers of management consulting services in the world. Geremy holds a Bachelor of Civil Engineering with Honors from the University of New South Wales in Sydney Australia, and currently lives and works with his wife and business partner Melanie Heath in San Antonio, TX.

Geremy came to the US from Australia in 2006 and met his wife a couple months later. While at the airport to leave for their honeymoon, he purchased a book about real estate investing. Much to his bride’s dislike he burned through the book during their trip.

The fire was lit and he became passionate about leaving the rat race and working his way to financial freedom through real estate investing.

In this episode, Geremy tells us how he developed the right mindset to be able to become a success with house flipping.

You have to expect to achieve the outcome you want. You have to believe you are going to make it.

He shares the story of how he put a house under contract to buy (and close within 14 days) without knowing how he was going to fund the deal. His incredible determination allowed him to find funding within about 3 days and he shares how he did it.

Basically, he beat the streets and made contact with as many investors as he could asking for recommendations for lenders. There is a lot of power in having a specific deal in hand when looking for lenders. They will definitely take notice and be willing to talk to you. Try that without having even ever received a lead…

Geremy also shares his philosophy about what flipping houses all boils down to….in as simple terms as is possible…

I can’t agree more.

Jeremy gives us the numbers for his first flip. He bought for about $47k, put in about $16 in repairs and sold for about $105k. This netted him roughly $24k in profits. Not bad for a first flip!

Geremy has a rough rule of thumb for how much he is willing to spend on marketing for each deal he receives. His target is to be at or less than $1,000 spent on marketing for each deal he does. Not bad when you consider he is likely profiting over $20k on each deal.

For those that aren’t sure of what some typical private and hard money lenders charge for loans on flip houses, he shares the terms from his first loan (the one he got for the property he already had under contract without knowing who was going to lend on it). Basically, that loan cost 3 points, some administrative fees totally about $800 and 12% interest only with a loan term of 12 months.

The discussion turned to dealing with contractors and Geremy shared what he felt like is the biggest mistake that rehabbers make. He mentioned that you have to control the flow of money. What this means is that contracts should only be paid for work they’ve already performed. A detailed scope of work and draw schedule that is based on which repairs have to be done before each check is paid is paramount.

Geremy discusses a lot about how he has developed systems to make sure his rehabs are consistent and run in a highly efficient manner. There’s a lot to be learned hear about what to shoot for if you plan on or are already rehabbing one or multiple deals at a time.

There are tons of other great information shared in this episode and I highly recommend you give it a listen.

Recommended Books


The Law of Success In Sixteen Lessons by Napoleon Hill

Links

Texas All Cash

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4 awesome responses to “Episode 3: The Mindset That Guarantees Flipping Houses Success”

  1. Crag Champagne on

    Enjoyed the Podcast. Its always great to learn from those who have already walked the path of success and are willing to put it out there freely.

  2. Cliff on

    Excellent. Thanks guys!