Walk Through The Real Estate Deal That Made Cody $50,000

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We’re walking through a rehab with Cody Sperber from Clever Investor. Learn how to flip real estate – you will walk through a real deal so you can see what needs to be done to flip a house.
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Walk Through A Real Estate Flip
0:20 – Expected to make a $20,000 profit on this one flip
1:08 – Bought the property for $260,000 and $80,000 or rehab cost in this real estate flip
2:08 – Kitchens and bathrooms sell houses
3:00 – The secret to remodeling a home
3:50 – How to add value to a home when you’re remodeling a flip
4:50 – The cost to build a new room
5:17 – Pro-tip to save money on house remodels
6:00 – The FLIP model to flipping real estate
6:30 – Want to get in and out quickly, look at time on market for real estate
7:45 – Location is key when you are flipping real estate
8:30 – Make an impact with your property – how can you add value
9:49 – You need the right team of people to make a real estate flip profitable | general contractor, real estate agent, sub contractors
12:40 – What the bedrooms looked like in this property
12:55 – How to make the bathrooms nicer as a real estate flipper
14:00 – How can a new real estate investor find a good investable property
15:00 – How to find new real estate deals

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[Music]
what’s up everybody I am just but he’s
singing I’ll welcome to the minority
mindset now welcome back to sunny and
hot Arizona I’m back with my man Kody
scrubber also known as the clever
investor and we’re at one of your rehabs
where you expect to make $50,000 on this
one property yep
and plan when you bought this property
you said it was a dump it was bad yeah I
mean this house was originally built in
1960 so it was all in original 1960
condition and then you add in a hoarder
lived here
there was like massive termite damage
there was stray cats everywhere there
was dead cats everywhere I mean it was
all the plumbing electrical material
everything needed to be redone in this
house it was in bad shape well I want to
learn about how you did it and we want
to go through exactly what you did to
make this flip happen but let’s go
inside because it is hot and when I mean
it’s hot let me actually show you it is
a hundred and eleven degrees out here so
let’s go aside before we start melting
so how much did you pick up this
property for yeah so we actually
purchased this one from another local
investor for $260,000 260,000 and then
you put in how much for the rehab yeah
so everything you see right now we’re
about 80 K which is the top of our
budget okay but we’re pretty much done
we’ve been in the project for two months
now we’re about two weeks everything
else at this place is like little tiny
things some cleanup we’re gonna stage
the property and you know that kind of
thing
well it looks beautiful how did you know
to buy this property like what did you
what was your thought process when he
saw this property initially because he
said it looked it did not look like this
any money
it was so bad there was termite damage
all the way up to like this high on
every single wall in the entire house it
was enclosed it was you know clunky
everything was 1960 condition I mean
anybody it smelled so bad you couldn’t
even be in the house for very long he
was that bad in his mouth it smelled
like profit right that’s what it smelled
like
smelled like yeah Cappy improv
kitchens and bathrooms sell houses right
so this is a 1635 square foot house it’s
not a big house so we can afford to
maybe put a little bit more into some of
the materials and make it really really
nice so we opened up the walls we you
know decided to go with the nicer
Calcutta courts versus like a granite a
really cheap way to make kitchens really
pop is backsplashes right a lot of
people so this right here that right
there like like in a lot of places
you’ll see somebody do like just a
little backsplash that’s like right here
that maybe matches the countertop I like
to make the backsplash as pop because
when somebody walks in you want them to
be like wow this is like unbelievable as
soon as I walked in that’s the first
thing that I saw is one that this place
is very open and second this kitchen
looks really nice
yep what you want to know our secret
what’s that Pinterest
really Pinterest I’m telling you right
now if you just scroll around on
Pinterest for remodeling ideas like if
you look at the side of just like the X
design I saw that on Pinterest and I’m
like I just showed our general
contractor I’m like hey I want that and
we’re actually gonna be repainting this
to make this a little darker because I
noticed this when we walked in here yeah
I want this blue to match this blue so
I’m gonna make this a little darker so
you really have to be a perfectionist if
you want to be a successful flipper you
know I I am because I I like I take
pride in my work and I like you know
when people walk in I want I want them
to sell quickly yeah that’s my key is
how fast can I get the house to sell so
I can get money back in the door
go source the next deal and move on to
the next you’re doing a lot of yeah we
got a lot we got about ten going right
now we knew that these were going to be
the two main rooms where people were
hanging out and so there’s a couple ways
to add value right obviously putting in
nice materials adds value to the house
remodeling it and bringing it up to code
all new plumbing all new electrical all
new lighting that kind of thing but
actually right here when we looked at
the garage originally on this house the
laundry room was actually outside this
wasn’t like this before
well the garage was here but this
wasn’t here and so we went to the city
and I checked in with a city I said hey
could we move the laundry room from
outside and put it in the garage and
build a room inside the garage and and I
had to go check for code to see if
there’s enough room for a car to park
here and they said as long as there’s so
many inches in front of the car or a
standard car length behind it then you
can do it so we were able to actually
add about 75 to 80 square foot by
enclosing the laundry room using this
old garage space do you remember how
much that cost you to build out this
extra laundry room but not much couple
thousand dollars really a couple
thousand dollars because wash check this
out it actually turned out great because
you know we just punched a hole right
here and now we’re in the garage right
and so we enclosed this laundry room we
added this sliding barn door and all of
these materials the flooring the
baseboards everything came from Home
Depot the fans the lighting and here’s a
protip if you’re you know starting to
get in they’re remodeling houses a great
way to save money is go down to Home
Depot and set up an account with their
pro desk right you could automatically
save tenda you know 15% depending on how
much materials you’re buying on
everything yeah Home Depot and Home
Depot is great they got every thing
under the Sun there and you can even set
it up where they you know ship it out
here so you don’t even have to keep
going back to Home Depot though drop it
over at the property if you buy enough
stuff so I know you have your little
modeling when you when you are like
thinking about flipping a property you
have some things that you’re thinking
about before you actually buy a problem
yeah so you know I’ve been doing this
business for 14 15 years now so I’ve
learned a thing or two I mean every
mistake under the Sun so now when I buy
a property I actually think about it
like we’re flipping houses right we’re
flip FL IP you got an acting – my god I
got an acronym and so the F stands for
fast right and so whenever I look at a
potential deal I’m always looking at the
days on market in the general area how
fast are these properties selling once
they’re fully remodeled because I want
them to sell quickly all right cuz like
I said earlier you got to get the money
back in the door like this one you might
be out in three
months yeah so when I looked at this
property our goal was to not be in this
house longer than five months
Wow okay here’s why I’m really concerned
with what’s happening in the market
right now yeah market slowing down
tariffs you know federal and Reserve
interest rate we hear about a 2020
market crash and all this stuff and you
know what that’s not just you know
people you know saying you know watch
out for the market crash there’s real
things happening right now that are
leading us to believe that if you’re
into a property for a really long length
of time you might get caught just like a
lot of 2008 we saw the exact same thing
happened with flippers because then all
this debt on all these properties that
were just holding then we saw what
happened so yeah I’m no longer like for
instance I don’t do luxury property
anymore okay I’m only doing
working-class neighborhoods where the
properties like 204 here in Phoenix the
medium home sale prices low 300s okay so
like I bought this house for 260
all right 260 thousand we’re gonna put
80k into it I’m gonna sell it for a 424
to 434 okay all right so the profits are
there the speed is there that’s really
really important so you gotta you know
say you have the speed i money fast yep
eff is fast and the L stands for
location right that’s good I guess then
there’s two golden rules in real estate
location location location and you make
money when you buy so I love this
location we are two and a half three
miles from Arizona State University one
of the largest universities in the
country it’s a pretty cool of school
this is my first time going through ASU
it’s a I wish I went there yeah I went
there and it was absolutely phenomenal I
don’t remember all of it I wonder why
but I went there and so we’re in a
cul-de-sac okay it’s a large lot so it
was like checking all the boxes of like
man this thing’s gonna move quickly once
it gets old days on market in this area
we’re less than 30 days so once it’s
fully remodeled sell quickly in the
right spot all right and then fast
location and then the I stands for
impact when you’re walking around right
now like I said we’re about two weeks
out from it being done but if you came
back in two weeks it’d be clean and we
stay
aged it would be sold like right away
because it’s you know it would just look
so good compared to everything else
that’s out there so I look for ways to
add value like how you built this
washing machine so you don’t have to
wash your clothes when it’s 115 degrees
outside exactly exactly so this
particular property we you know to
provide the most value and impact yeah
all right we changed all the materials
we added some square footage and then
you can kind of see out there there’s a
garage out there normally that we don’t
have a secondary garage but this
particular property had this old beat-up
garage it was like in super distressed
we went out there and replaced the roof
replace the garage door put all new wood
and fixed it all up somebody’s gonna
find that very valuable to them
especially if they’re a mechanic or they
want to turn that into an airbnb kind of
that’s due to the fact that you created
your you’re finding a property that’s
beat-up that has a lot of either
financial distress or physical distress
which is what I talked about a lot of
true find a property that’s undervalued
you come in you fix it up and that’s
your impact to make more money on yep
yeah and and then the last one is p4
people right so this whole thing works
when you have the right power team of
people surrounding you right and so for
me my team looks like this so it’s me
and my two business partners one of
them’s a licensed agent one of them’s a
licensed general contractor right before
they were licensed because we weren’t
always licensed before they were they
were license we used to hire those
people and so it’s really important that
you find the right general contractor
when you’re new at rehabbing and get
them on your team pay them well treat
them well and get them on your team
because they’re gonna make your flipping
experience really really great then they
go out and find all what’s called
subcontractors that’s the electrician
the plumber the drywall er the painter
all that stuff so it’s their
responsibility to have their
relationships it makes your life a lot
easier – oh man now guess what I’m doing
sourcing new deals raising more money
you know investing I’m focusing on the
things that actually move the needle not
saying that if you’re really loved you
know you don’t have handyman work and
you want to hang some things like hang
some drywall go
for it but I wouldn’t spend my time
doing that I like to focus on the bigger
picture and for somebody who’s never
flipped a property before or who is
interested in potentially getting into
rehabbing if you’ve been doing what you
do I know you have an e-book available
right on how to do your first we have
yeah so since we’ve been doing this for
so long and I made every mistake Under
the Sun like literally screwed
everything up
I sucked it investing and rehabbing for
a long period of time that we just start
documenting the things that we’re
working in this in the flow of the rehab
and have a source materials and how to
hire the team members and what to pay
them and wait when to pay them that I
just created this little guide and over
time it became really useful a lot of
people wanted to use it and then we’ve
swapped the cover on it and now you have
access to it so if you want access to
this Holy Spirit guide on how you can do
your first rehab we’re gonna give it
away for free to you who are watching
and you can download it by clicking the
link up here or by clicking the link in
the description below minority – it is
an affiliate partner with Cody Smyrna
and the clever investor so if you end up
buying any of us products later on you
will get compensated but there’s no
additional cost to you now I want to
learn more about this property yeah so
let’s go through it you have three
bedrooms here yeah so the guy who was
living here lived in this room and he
barely ever left this room everything
else was like if you can picture like
what a hoarder house looks like there
was literally stuff everywhere and so he
lived in this room there was no window
there was like a little beat-up old a/c
unit and that was the only AC in the
whole house Oh Mike right the rest of
the house was like stinky and super hot
there was black mold all right here and
this guy was living on a futon right
here I couldn’t believe it
so you changed the carpet we wait all
new baseboards all new dry because we
had to get rid of all the termite damage
and all the mold took it down to the
studs and the entire thing so everything
you see here has been replaced and then
this bathroom turned out really really
good you know we decided that we wanted
a step in shower we’re gonna have a glad
the last thing that needs to be
installed as a glass shower door and
that’s something that we like to do in
our master bathrooms is when you gut it
and you go and you put it all back in
put like a little 3-inch lip down there
right so that way the water doesn’t come
out and it gives
you a choice you can either put a nice
glass shower door or you could just if
you want to be cheaper you can just hang
a rod and have a shower curtain and it
can flow right back in but if there’s no
lip then there’s you can’t do that you
have to put in glass shower door see the
thing that I really like about this flip
is you told me that there used to be
cats all over this property and you had
to actually rescue a cat – we rescued
the cat in fact they we thought the cat
died in this bathroom
and there is this awkward moment where
I’m trying to get the cat and wake him
up but it didn’t move and for like 30
awkward seconds we thought it was dead
and then all of a sudden like sprung to
life and we ended up rescuing the cat
and taking it down to the animal shelter
and got it all fixed up so we were able
to relocate all the cats or well over a
dozen of them and find him home so it
was it was very rewarding well I want to
take a look out in the back as well
because one other thing that I found
really interesting about this property
is that you know you said you came in
and you saw termites you saw black mold
you saw the smell you saw cats how does
somebody who is just getting started
in real estate like how can they turn
that into this impact this value that
you talked about how did they know to do
that do you just look for the most
beat-up property or what do you look for
no it’s really come down you’re
marketing right so like for me we’re
putting out a lot of different marketing
in the areas where we want to buy
properties at that right and so you know
your area way in and we know the areas
that we want to find deals in and then
you know as the deals come across our
desk my rule of thumb is anytime it’s a
home run
cherry pick it out and run the
renovation if it’s not a home run if
it’s a skinny deal don’t do it it’s not
worth the risk
so you’re looking for only the big deals
but you you find these deals one because
you built this network you go to real
estate investor meetings is that how
you’re finding deals or yeah well
nowadays it’s even easier than that I
mean back in the day I used to have to
do stuff like that but you know think
about the power of social media nowadays
there’s a lot of free fire power people
have on their cell phones and so I
actually source a lot of deals just
hitting people up through Instagram
through Facebook through
in different groups of stuff just saying
hey I’m looking to buy deals when he got
what he got show them to me first I’m
hitting up every real-estate agent in
town I’m hitting up the other local
investors in town and then if I have
money you know you know which I do now I
can now spend money on advertising like
direct mail and Banta finds it to find
the homes themselves to find the deals
Wow
so when do you have to know the location
well the whole flip method you’ve got
another location you got to get it out
fast you got a upsell you got to create
this value and then you need to have the
good team that’s a great model that’s it
well thank you guys for watching thank
you Cody for taking us through this deal
and teaching us about flipping if you
enjoy this video make sure you hit that
thumbs up button and subscribe to the
minority – a YouTube channel that way
you don’t miss a new videos every single
week and as always keep awesome

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