# # Entrepreneur of the Week Yossi Beit Yosef # Post 4
Flips of land versus flips of singles
Remember my story from the first post?
How did I get into the land industry?
“S I sipped my cold coffee, it was a little after 12 noon and I ask myself, what did I do what I got into it what me and the lands and more on the west coast of Florida (I live on the east coast) … ”(This is a sentence from the first post)
I look at the address Cape Coral - yes I know there is such a city, considered beautiful, developing - I have never been there
What now? I go into Zilo see prices in different ranges, do not understand what the differences are and come out well I take a breath, another lock from the cold coffee (remind you - Sunday lunch on the terrace - hot in Florida) I go to the district appraiser's site, first time I'm on this site I think to myself, I enter the details of the property and I start going through the data on the screen oh beauty the property is valued by the appraiser at $ 7,000 moment but it is written that he bought the property for $ 35,000 What is happening here Did the appraiser make a mistake?
I keep browsing the site and I find that I can see the plot and the boundaries of the plot by looking at the GIS map and when I mark the neighboring plot then I get the details of the plot owner - what could be simpler than calling someone who already owns a plot and asking him if he is interested In another plot? And so I started calling all the landowners on the street and then moved to the next street, while talking to landlords I learned what the buying and selling range of the plots in this area was more than the appraiser estimated and much less than the price Gil paid for his land in some calls they asked me what price I asked answered. To me “if this is the price you sell then sell my plot too”, I finally got to the buyer who said - I will buy your plot - you have more plots - I told him maybe let me check, I went back to the same people who asked if I was willing to sell them Their plots and at the end of the day after Gil agreed to get well below his investment price (realized he was cheated at the time of purchase) I sold my plots 3 plots and a total profit of about $ 15,000.
It was almost 6 in the evening and I replaced the cup of coffee with a cup of frozen margarita when I realized that one Sunday I earned $ 15,000 and then the head starts working for a moment if I do it every Sunday - then in a month I will earn $ 60,000 and if I dedicate another day This week it will be $ 120,000 and if I dedicate another day to it then… (my head started to spin - I do not know if from the margarita or the thoughts)… All this from the chair at home without moving the car, without walking around dirty and ruined houses, without quarreling with the bunny renovator and without getting upset about delays Of the municipality - I discovered that I can do real estate without headaches, I discovered that I earn much more than the flips of singles I have done so far - a new business was born and since then I do not look back.
A week ago I was dealing with a termite problem that was discovered in one of the flips, I get a call from my buyer - do you have any more plots? "No" I tell him "but I can search"
Well he tells me you will find me in this and that area - but not such lands are lands of this kind and as he explains to me more questions are born to me and then he says “Come to Cape Coral I will do you a tour and teach you what to look for me ”
And so it turned out he was one of the largest land dealers in Florida, he introduced me to his title company and to realtors who specialize in the area and land, he taught me what to watch out for and what not to do.
In conversations I had with traditional real estate flippers I found that most of them do not know how to calculate the time element in their projects and the conclusions I have reached are as follows:
The average flip of buying a single renovation and sale lasts (from the day you spent money until the day you made money) for about half a year.
Everyone calculates profits in percentages and returns only but let's check how much it is in money and how long did it take to earn it?
Quite a few flippers have said that 50,000 is a great profit but usually it's around $ 35,000, let's stay with the great profit for the sake of the example: “Okay I say so we're talking about a profit of $ 8,300 a month right ? ” “Yes” I get a stuttering answer (the token is starting to fall I think in my heart) and “How many hours of work do you devote to it each day? “Hear there is no choice. There are always issues to deal with. Sometimes it's also problems. ”
Remember - in any real estate initiative you should check the expected profit in relation to your working time on a daily basis!
A lot of entrepreneurs I showed it to, did not even know that their flip was worth a working day of an employee going home at the end of a quiet day!
We will not finish this post until we make a small comparison of returns for those who like percentages
A year and two months ago I bought a dunam of land for $ 2,700, within a week I sold the land to Esti for $ 7,700. My entrepreneurial profit was 185% per month (the truth is that the actual yield was infinite because I financed the purchase from the sale money - double closing)
The plot is worth $ 13,000 today and Esti can sell it (at this point she chose to wait) a profit on paper of about 100% reflecting an annual return of about 85% to Esti.
Esti did not spend a single second on renovations - just sat and waited without a management company and without tenants who confuse the mind or worse tenants who do not pay.
My conclusion: in a land flip I can earn in one day what a single flipper earns in a month !!!
And without any headaches (unless I drank too many margaritas during work)
Second conclusion - "Margarita is too frozen - also causes a headache"
In the photos - the balcony - office - and the view at sunrise, my wife's excellent margarita
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