Could you imagine making $80,000 off of a deal and having to remind yourself of the details? Yeah. I’m not there yet either, but after six years of hard work, that’s where real estate superstar Alex Camacho is.
I got to sit down and talk with him a little bit about this deal but even more about how he got from point A, working for someone else and helping them build their real estate team, to point B, working for himself and many times making huge profits like this. He dropped some knowledge nuggets about the process and got me fired up and I imagine his words might do the same for you as well.
Big Picture Flip Details
Where did the flip happen? Rosamond, CA.
How did those numbers work out?
Source: Off-Market Lead
Purchase Price: $120k (11/10/2021)
Reno cost: $52,556
Sale Price: $300k (4/26/2022)
Net Profit: $83,060
Deals don’t always have to be glamorous to make a nice profit. The main thing that you look at needs to be the numbers. If you’re sure about the numbers and your ability to get a profit off of the deal, you’ve got the green light.
With this deal in Rosamond, CA, Alex say an opportunity and took an ugly duck property and made it beautiful for its new owners. Even so, it’s not a luxury flip or even a flip in a big city which most of the time is the case when you see people showing off these big profit margins.
Video Interview with Alex
Alex Camacho’s Team Setup
When Alex Camacho started out in the beginning, he did not have a team. In fact, he was part of a team.
When you saw his massive profit, you might have said, “Ah, sure. Easy for him. He probably has a huge team.”
Sure he does.
However, it wasn’t always like that and he used to work for someone in real estate so he could learn from them. He was the one that was learning how to run numbers, how to do acquisitions, how to do dispositions, how to build rapport with sellers when he spoke to leads.
At times, it is easy to forget that everyone had to start somewhere and the way Alex chose to do it was working for someone else in the industry.
Now, he not only has his team that works for him full time which includes all of those roles I spoke about above as well as more, but he finds people that can work with him as interns for a short period of time. This could be a good option for you if you’re getting your operation rolling but don’t have the cash to hire a full time person. You could pay them on commission only and team them the business.
Finding a Deal with Over $80,000 in Profit
Sure, these deals don’t come around every day—but they do come around some days. And that’s what you have to train your eyes for so you don’t miss out on these opportunities.
The team found this deal, Alex okayed it and the project moved forward.
From the purchase date to the sale date, there was a little bit over five months of time that passed. In that time, they got the team in there, rehabbed it and sold the property to its new buyer.
His finely tuned machine made him money while he was working on other projects that weren’t in California. He also has projects going on in Hawaii as well as in Mexico.
Why Was This Flip So Successful?
The reason this flip was so successful was because the purchase price and the rehab price were low enough where it made sense with the after repair value (ARV).
Honestly, this is what it all comes down to with every deal. If you get super good, like Alex Camacho is, at figuring out where you need to buy the deal and how much you can get people in that project to rehab it and how long it will take, you’re off to the races.
The property also didn’t cost much to purchase so the money into the deal was much lower than if he’d picked a flip that had a higher price point, he would have had more of his (or his private money) in the deal.
How Much Money Did Alex Walk Away With?
Alex didn’t have a partner on the deal, so he was able to take home 100% of the profit which was $83,060. Not bad for less than half of a year of having the project going.
How to Contact Alex Camacho
You can contact Alex Camacho on Instagram. He invests full time and is always interested in finding more private money partners that are a right fit.