How A Single Mom Built A $40K Flip Profit

Welcome And Kristen’s Second Flip

SPEAKER_00 0:01

You're listening to the Flip Houses like the Girl podcast, where we educate, empower, and celebrate everyday women who are facing their fears, doubling family and business, embracing their awesomeness, and wholeheartedly facing their dream of flipping houses. Each episode delivers honest and goodness tools, tips, and strategies you can implement today to get closer to your first or next successful house flip.

SPEAKER_02 0:32

Welcome back to the Flip Houses Like a Girl podcast. This is the show where we highlight real stories of everyday women who are learning to flip houses and create freedom for themselves and their family. I'm Coach Blair, one of the coaches here at the Flip Sisters. Today we're excited to introduce you to Kristen. She joined the Flip Sisters program a little over a year ago, and since then, she's flipped two houses. In fact, she just closed her second house. A little bit about her. Kristen is a single mom with two kids from Iowa who really just wanted something of her own and to get ahead financially. And she knew she couldn't do it at her normal job. She took a really brave step, quit her job, and jumped into flipping full time, and has never been happier and never looked back. We can't wait for you to hear her story, the lessons that she learned along the way, and the great advice she has for other women who are just getting started.

When It Starts Feeling Real

SPEAKER_02 1:44

Hey everybody, I am so excited today. We're gonna check in with Kristen, who just sold her second flip. So excited to introduce you to her and for us to dive in and talk about this. Kristen, thank you so much for joining us today. Thanks for having me. I'm excited to be here. Awesome. So, like I kind of mentioned, we're gonna talk about your second flip. So, first let's just pause and celebrate. Like, how cool is that? Like you've like not only done one, but you're like, oh, I did it again. Like that to me is just so neat. How does it feel to have two under your belt?

SPEAKER_01 2:20

In some ways, it's super surreal. Like I am so excited and wasn't quite sure I was gonna get here. But like now that we're here, I'm like, I think I'm a house flipper. This is amazing.

SPEAKER_02 2:31

So I'm so excited. That is so cool. It took you two because I have a very clear memory. It was house number four for me, actually. And that's why like people talk about, you know, we talk about imposter syndrome and stuff like that. And I still kind of seven years down the road, I'm like, do I do do this? I'm good at this. We're good. Um, but I remember like driving home from finishing up, making sure everything was ready for photos for my fourth flip. And like, I'm sure if anybody was in the car with me, they probably thought I was nuts because I was like cackling. Because it just hit me like, oh my God, like you're a house flipper, like you've done this four times. So I totally get it. And I love that you're like, oh yeah, number two when I was there. Like, we're we're good, we're awesome.

Finding An Off Market Property

SPEAKER_02 3:15

So, speaking of number two, everybody always wants to know like the nitty-gritty and the fun details. So let's dive in there. How did you find this particular property to flip?

SPEAKER_01 3:27

Actually, that's a super interesting story. My first house was actually listed on the market, and we then made contact with the real estate agent's husband, is who bought it. So that's he is a wholesaler. Well, he then had this property listed. Well, not listed, but he had bought it. And this property is actually probably five blocks from my house. And so I was like, I'll go look at it. Quarter house, disgusting, perfect. And I was like, I'm in. So we ended up buying this house from the wholesaler of the first house we bought off market. So it was like he hadn't listed it or anything yet. So we didn't have to pay the real estate part of it and the commissions on that side. But it was very funny and interesting, like behind the scenes, but it worked out perfectly.

SPEAKER_02 4:22

Yeah, that's kind of cool. And I love that. Like you're just kind of building on that network you already have. So walk us through a little bit of like what your purchase price was, and then also kind of like how you got your renovation budget and what it was, so to speak.

Numbers And The Attic Master Plan

SPEAKER_01 4:38

So we purchased the house at $100,000 and it was cleaned out. So that was agreed upon on the purchase that he would clean it out. So I let him pay that five grand and clean it out. And then we came in kind of blank slate. So it was very dated, and then we had an unfinished attic space that they had one room kind of ponywalled and probably used for storage because it had like sort of subfloor. But I knew I wanted to renovate the attic and um make that a master suite and bathroom. So I had two different contractors. My first flip, I learned a lot from our contractor on what not to do. And so I did have him actually walk this property, kind of knowing that he would lowball everything. And then I had a contractor that I had actually used for a few minor things at my personal house walk it as well. And both of them quoted very similar costs. So they both kind of quoted 85, but it would probably be end up being over 100 grand for the renovation to finish everything. Then another side note is that we've been so blessed in our journey with our real estate agent because our real estate agent and her husband also flip properties, and her husband was a contractor for 15 years. So it's really great because they will walk it with me and say, if anyone comes in below this, they're crazy. If anyone's charging you this, it's nuts. So it has helped me so much and been such a godsend. So our budget ends up being about 90,000 on paper to our hard money lender, is how it worked out. Okay, not what it ended up being.

SPEAKER_02 6:31

What did you what did it end up as?

SPEAKER_01 6:34

We were just over a hundred, so it wasn't terrible. That's nice. Um, but we did go over about 13,000. So but things unforeseen, like we did end up replacing all of the windows, which was 12 windows, and we ended up siding the garage, which we were just gonna paint, but it was lead paint, and then I just said just cover it. So those two things are what kind of really pushed us over.

SPEAKER_02 6:57

Yeah, yeah. But smart decisions, it sounds like I think that's really cool that you found like a realtor and her husband that wear those different hats. I think that what a blessing. And it sounds like you guys work really well together. So that's that's pretty darn cool.

SPEAKER_01 7:14

Yeah, I love it. I'm so grateful for them.

unknown 7:17

Good.

SPEAKER_02 7:17

Yeah, I try to tell people, I'm like, there's super great people out there, I promise. I know we hear horror stories, but that's not the norm, to be honest. Like, there are some really great people out there. So I'm super glad you found you found your Renault tribe, so to speak.

SPEAKER_01 7:30

Yes, it's been amazing.

Contractor Lessons The Hard Way

SPEAKER_01 7:32

I will say contractors have been tough. Like, we've had big challenges with our first contractor was a flip sister, do not do like to the T. Like, I I don't even know what possessed me. Like, he is great, and I really like him as a person, and I think that's where my downfall is. Yeah, but there was no signed contract, there was nothing, like it was all just like, oh yeah, a couple of weeks, oh yeah, no problem. Oh yeah, it'll be fine. And it all ended up fine in the end, sort of, but it was so stressful. And so this contractor was almost extreme opposite, where it was like 14 screws, five, you know, like, and uh, so that's a little excessive as well. So I'm finding my my perfect place. We're gonna get there, and I will have my dream team soon, but it's a process, it's a process.

SPEAKER_02 8:24

Good, good.

SPEAKER_01 8:25

Yeah.

Hard Money Funding And High Rates

SPEAKER_02 8:26

So you I heard you mention hard money lender. So let's take a little step backwards, so to speak. How did you fund this project?

SPEAKER_01 8:35

So we used a hard money lender for the purchase and the renovation, most of the renovation. Um, he does 75% ARB. So he'll do 100% of everything up to 75% of the ARB. Oh, that's nice. It's beautiful. However, the not beautiful part is his interest rates are insane. So, since using him, and I actually have a third property that we are in the process of now, and I bought the in February in the same hard money lender, and I will not use them again, I don't think. Like I'm hemorrhaging money just because of his interest rates. And now that I I feel like now that we're more established, people kind of reach out. And you guys say that a lot in the training videos, and I did not believe you because who's gonna reach up to give you money? That sounds ridiculous, but like it actually is true. Like, I have people like calling me being like, Hey, next time you're in the market, like I can beat their rates, like I'm here, I'm good. Like, and I'm sitting here wondering, like, were they they actually told the truth in those videos? Like, yeah, yeah, yeah.

SPEAKER_02 9:47

And so, you know, for those of you who are listening along, a lot of times, you know, one of our teachings in our group is like, good deals find money. And I've told ladies, like, if you do a couple of flips, I was like, You like hard money lenders want to give you money so bad, they will start tracking you down. And I shared with our group the other day, I actually had one that sent me a Starbucks card. They FedExed it to my house with their information. And then I guess they messed something up. Like I don't know if it was good marketing or whatnot. I it could be, but they were like, oh, sorry, we messed our phone number up. Here's another card. So like I'm calculating it up, like between the shipping costs from FedEx, like the the cards. I'm like, they spent like $20 sending stuff to me. But yeah, I mean, I get calls, I get snail mail, I get emails. I have one person that I have like on a do not call list because they were just like, they want to give you money for these projects. I promise. So I love that you're like, yeah, she's not kidding.

SPEAKER_01 10:51

But I really did think you were lying. Like I really was like, oh, come on, that's not real.

SPEAKER_02 10:57

Yeah, yeah. I totally get it because like that was one of the biggest hurdles for me when I started. You know, I had never seen, you know, my gosh, probably never seen $4,000 in my account at one time, let alone enough to purchase a house and do a full gut job renovation. And I talked to somebody and they were like, Yeah, they're like that, people will give, like, lend you money to do this. And I'm like, that is insane. Like, no, they're not. Like, but then I realized like what a win-win it is for both parties. And then especially, like you said, once you start doing one or two of them, you know, hard money lenders have their own way to like scour the data and find out who's doing this, and then they'll start hounding you down because you're an active flipper. They want to give you money so that they can make money uh and pay their investors out. So they're out there. So thank you for sharing that perspective. Um, I told people, you know, sometimes they've got to hear it from someone other than mom, so to speak. For sure.

Private Money Notes And Better Options

SPEAKER_01 11:56

And then actually another interesting thing on this flip is in the middle of it, things were just tight because I decided to purchase another property probably before I was ready. Not probably before I was ready. Um, so things just got a little tight. And my real estate agent had a friend who wanted to invest with them, but it was only like 10 grand. She they didn't have a ton of money that they were willing to do. And I was like, uh, yes, please, that's perfect, because that would like get us through, you know. So anyway, we built that relationship and we did a um promissory note type situation with the private money, and that got us through. Well, then they were like, You have another house? Can we invest in that one too? And then can we roll the money over from that one? And then yesterday, her dad called me and said, Hey, my daughter told me this. Can we invest with you too? And in a dream world, that's where I'll get my money, is from people that I can help along the way versus these rich people and making more money, right? Like, so in a dream world, that would be part of the helping process and the you know philanthropy of our business as well. So, like, I'm excited for that.

SPEAKER_02 13:07

Oh, absolutely. I tell people that's one of the coolest things I think we get to do as real estate investors is educate other people in our community. And when I say community, I do mean like your parents, your brother and sister, your aunts, uncles, your friends, whomever. And you educate them on how they can invest with you or with someone who's doing what you do that you trust, because it is the way that we set up everything through attorneys, everything's on file with the the county as far as like on the deed. It's very secure. And we give them amazing returns. Um, one of my favorite exercises to do for people is to say, you know, how much do you have in your CD or whatever? Call your bank, see what your rate is. And then we calculate out like for the year, let's say a year, if they invested in one project with me with that amount, what would their return for one project a year be? And then I'm like, okay, and then we're gonna calculate out what that one project like that year with your CD is. And then that's I think when it really clicks for them because they're like, oh my gosh, like our return is like four times as much, if not more, than what they're getting on a CD. And it's uh typical, and it's the cool thing is it's secured by real estate. So they can go like touch it, you know, like it's a real asset. It's not like the stock market where it's a little bit of speculation and you can't see it. So it's a very secure investment for investors. And I think I love that you've kind of got that in your heart and you're like, I'm gonna help the people who I care about the most, right? Like, let them make the money.

SPEAKER_01 14:46

I love it. That's the dream. That's awesome. And it actually saves me money on this borrowing side. I mean, it's so beneficial to have that option. Yeah, dream world, you'd have your own money, right? Someday I will. Today is not the day. And so, you know, it's it's such a good thing to be able to help people along the way.

SPEAKER_02 15:07

Yeah, it can be a huge win-win for everybody in your circle. Absolutely. All right, so that was cool

Hiring A GC Without Losing Control

SPEAKER_02 15:14

conversation. I love it. We kind of went off a tangent there. So let's shift gears just a little bit. Let's talk about like the construction end of this home. So, like, did you hire a GC, a key contractor, or did you kind of oversee everybody?

SPEAKER_01 15:29

No, so this project was big. And so we felt very unqualified to be a GC on this project. So we did hire awareness.

SPEAKER_02 15:40

I love it.

SPEAKER_01 15:40

Yes, and but I think I was also that very annoying homeowner who like kind of let them GC and then kind of didn't, you know. So we did have an agreement going in with our general contractor that he would get all of the bids and all of the subs unless I found someone at a better price. And if I found someone at a better price, then he would still get his 15% or whatever on top of what they bid, but we would go with my person. So that was kind of a nice little compromise in the sense that like I still felt involved, but also felt like I didn't have to if I was just overwhelmed, which it was very overwhelming. There were a lot of things that yeah, just kind of went haywire. And I really think if it wasn't for my ex-husband, we would be upside down because he did do the electrical first because he's a licensed electrician, and that was shocking. And he bought all the materials, and thank you. So I'll take it.

SPEAKER_02 16:42

Awesome. I always tell people support shows up in the most miraculous ways. Yeah, for sure. God is real, it works. Definitely, yeah. So, with this second one, what was like your favorite part of this particular flip?

SPEAKER_01 16:59

So, this flip, we were more hands-on. We did a lot of the demo. My favorite part of any flip is picking out all the things. Like that is my my first degree is an interior design. So that's kind of where my heart is anyway. But this one was fun because the space transformed so much. Our first one was somewhat cosmetic. This one we removed walls, we, you know, completely renovated the upstairs, added walls, put in a bathroom, redid all the stairs. So, like to watch it progress and then have the people who came in to help you demo walk through it and be like, this is great, was so satisfying and rewarding. And I just loved kind of seeing it all come together. And I think anyone who does this will tell you, like, in the beginning, so much is behind the scenes that you feel like nothing is happening for so long. And then all of a sudden, like drywalls up, paint's up, floors in. Like, and I'm like, yes, we're gonna do it.

SPEAKER_02 17:57

Yeah, yeah, I definitely get that. I have a project now where it's like, I feel like we've done nothing, but like we've done everything. It's just all the stuff, like you said, it goes in before the things you can see, so to speak. So you've done lots of work under the house, the foundation stuff, you know, all of the electric, the plumbing, the HVAC is all done. And we're waiting for the city to come in and do a rough and inspection. But like I'm telling people I'm like, as soon as they do that, like in two weeks, we're done. And they just kind of look at me like I'm I've grown a second head, like if they're not in the business. And I'm like, all the hearts, like we're this is done. Like, we all we have to do like insulation, drywall, paint, like floors and cabinets. And they're like, that's a lot. I'm like, is it though?

SPEAKER_01 18:40

Like, I mean, even if everything took two days, you're still a couple weeks out done. Like, yeah, people, yeah.

SPEAKER_02 18:46

So I love that turn, that turning point where you're like, okay, and yeah, like you were talking about, like, okay, and we're done. Like, let's go, let's go. Yeah. So it's just going to happen.

Imposter Syndrome And CEO Mindset

SPEAKER_02 18:57

So as you were going through this split, did you have any like any mindset obstacles or limiting beliefs that came up for you?

SPEAKER_01 19:08

Or any fears, freak out moments. Yeah, I think there's always that self-doubt or sabotage in my mind. Like, what the heck am I doing? You know, like literally, I'm a single mom who quit my job to go all in on something that I am so passionate about, and it is terrifying. Like every day I wake up thinking, you know, my kids don't have to eat every day. Like, we could skip a couple days, like, you know, and it's just so like you said, imposter syndrome, like you feel like you are not qualified. Like, can this really happen? And I think throughout the process, as I was like, you know, we had moments where things would be done, and I quit, I I would be like, no, like this is not good. Like, we can't we can't be done. This is not checked, you know, you gotta like fix this. And they would be like, Oh, come on. And I'm like, no, I know. And when you have those moments of like where you realize, wait, I do know what I'm doing. Like, I do actually understand something, it's it's empowering, but I think the self-doubt is real, it's constant. Like, even on a good day when you don't and you feel like everything is great, I still have those moments where I'm like, Are you sure? Like, you want to just go get a job, like a real job, like a job job, and then I'm like, No, I have a job. People be like, Well, you're not working. I am working, I am self-employed, thank you. Like, that's right. But it is hard, it's hard to shift your mindset for sure. And I think that every day it's a challenge to like remember that I am the CEO of my business, I am running my life. Like, this is not just like me taking vacation. Like, this I've worked harder this year than I have worked for ever at any job for anyone else, but I've loved it so much more, and it doesn't feel like work, if that makes sense. Like, so yeah.

SPEAKER_02 21:08

Yeah, absolutely. Yes, but yeah, absolutely. I totally get it. Because yeah, there will be times where I'm like super stressed out or I've been like working hard, but then I also like have to remember there are days where I I probably don't do anything, or I'm picking out tile, you know. I'm going, let's go to Starbucks, let's go to Starbees, get a drink and go pick out tile. Like, you know, okay. So it's I'm living my dream job. Like, you know, I'm like, I like you said, you can you can call it a job because yeah, we do work, but I think there's a little bit of super grateful that this is what I have fallen into and that I'm very good at it. So, one kind of last question as we round up here. If you could give any advice to, because I love your story with like the being a single mom and you do work so hard and you've made a huge leap, it's very inspiring. If there was a lady just like you who was listening to our podcast, like what one piece of advice or what would you tell her in order to just say, like, you can do this, like get off the fence, like let's go.

SPEAKER_01 22:14

I will say that whether you decide to do it or not, it's scary, right? So the thought of doing it is terrifying. Doing it is terrifying, you might as well do it. Like, go for it. What's the worst that can happen? You know, you fail, then then you start over and you try again. And I will tell you the support group of flip sisters has been invaluable. Like, I can't tell you the number of times that and you know, I am not a huge poster, I don't, yeah, but I'm not in my real life either. So don't take offense, right? Like I just don't do that. But I will read through everything and I go in and I'll search whatever I'm dealing with, and it's that it's that foundation of someone else who said, Oh my gosh, this was hard, and they made it. So can I, and so can you. Like, it's so possible. If this was impossible, there wouldn't be so many of us doing it. And it is, I think, the difference between those that succeed and those that don't are the ones who let their self-doubt control or their dream control. And you just have to go for it. Take the step, move, be the example you want your kids to be. Like, if you would want your kids to do it and go for their dreams and like strive to be, you know, all that they want in life, you should do, right? And that's what we're doing. We got this.

SPEAKER_02 23:37

Yeah, absolutely. Thank you, Kristen. That was beautifully put.

The Profit Math On Flip Two

SPEAKER_02 23:41

So, last little question that everybody always wants to know how much money did you make?

SPEAKER_01 23:48

Yeah. So our first slip, I always joke and say we profited knowledge. So our first slip, I think we only made probably like five grand, but I did not owe anyone any money and I consider it a win. I'll take it. Our second one, we ended up netting after everyone was paid back, and I rolled over the investment money from the one family to the other flip. We ended up profiting $39,550, something like that. So that was great. Yeah, we sold the house for $258. So we were over 10%. Like I am just so thrilled with the outcome. So yeah.

SPEAKER_02 24:28

That's amazing. So it's like $40,000. Like, let's let's round up. Come on. Yeah. I love that you're like so exact. You're like, and 22 cents. Okay. Don't forget.

SPEAKER_01 24:38

Like the 22 cents is important. Okay.

SPEAKER_02 24:42

You're a better bookkeeper than me. Let me just say that. Um, I'm like, eh, we're close. We're 40 now, like rounded up to 40. We're good. We're good. Awesome. Well, Kristen, that is so amazing. I am so dang proud of you. Thank you.

SPEAKER_01 24:55

I'm so excited.

SPEAKER_02 24:56

Yeah. And thank you so much for taking some time out of your day to talk with me, share your journey on your second flip, share those amazing words at the end. I really appreciate it.

SPEAKER_01 25:09

Well, you all are appreciated as much. I am so grateful for you guys too. So thank you. Go, team.

Keep Going And How To Connect

SPEAKER_02 25:17

Thank you so much for joining us today on the Flip Houses Like a Girl podcast. I hope you found inspiration and practical takeaways from Kristen's story. Remember, every successful flip starts with one brave decision to get in the game. And the great news is you don't have to do it alone. If you're ready to take the next step towards flipping your first house, we'd love for you to learn more about the Flip Sisters program. It is the leading coaching program and community designed specifically for women across the country who are ready to flip houses in any market. To connect with us, check out the program, or just get inspired by more stories like this one, visit www.theflipsisters.com. And as always, thank you for listening, subscribing, and sharing this podcast with other women who are ready to step into the world of flipping houses. Until next time, keep going, keep growing, and remember, you can absolutely do this.