Jon Steingraber
Appearances
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
You know, the idea is not necessarily to do a flip in 24 hours. It's to inspire people to do a three-month renovation in seven days.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
I can take all the cabinets down, put new cabinets in, and countertops and everything, have a brand new kitchen, new appliances, everything, and it doesn't require permits.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Same thing with bathrooms. Vanity's here. Okay. I'm not adding, I'm not changing it. I'm not putting the vanity on this wall and putting it over here. No, I'm leaving it there.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Direct replacement, toilet, direct replacement, everything direct replacement. And, you know, if it's a water heater, you got to get a permit, but that's one step permit.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
You can put in the permit for that, replace a water heater, get the guy to come out. It doesn't stop you from doing anything.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
right roofing windows um siding doesn't require permits that's right right unless you're doing the sheathing on the roof you know then it's emergency work and you could get the guy out there but um you just have to understand the rules of the game right we're playing a game yeah so the better you know the rules the more that you could take advantage of how it works and then you have to be smart enough to say and disciplined enough to say all right i'm not going to knock down that wall
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Even though open layout concept's the thing, I'm not going to do that because I want to make money. And guess what? I've never not sold a house because I didn't knock down that wall. No. It sells. You just have to price it accordingly and purchase it accordingly.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Or you might sell for, you know, a $10,000 difference. Okay. I mean, it's a lot of times it really doesn't make that big of a difference. It's more a matter of there's inventory. Wow, there's a renovated home. How many houses in your area are actually renovated and, you know, they're not at the top of the market priced? Well, that's what we do.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
I just want to share, kind of reprogram, reset people because we've been kind of taught that it takes three months, four months, six months, and that's not reality.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
We have a renovated home that's not at the top of the market. And that's what people love. People love that because there's not a lot of inventory out there.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Speed up. So logistics, right? So we bought a 36 foot trailer. You know, if you're in the business, it's not a bad idea to do this. And we put all of our supplies there. Now, look, I didn't have a 36 foot trailer when I first started doing 24 hour flips. I rented a 24 foot U-Haul.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Right. So we would literally put everything there. And then the U-Haul is in front of the house. You open it like it's a storage facility. You can even do a pod.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Right. And you have all the materials there for the whole job. So you have an inventory list.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Right. And you have everything there and you have some extras of stuff. Right. Yeah. Right. So just so you're not constantly running back and forth. You're always going to have to go to the supply house store. That's why we have our runner. You know, but the idea is that you think through everything. Right. And you plan it. And then when you're a lot of people are waiting on material.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
So, you know, if I know that my windows are five weeks out, I'm going to order them before I, you know, when I know I'm going to buy the house, I'm going to order it ahead of time. A lot of times people tend to close on a property. And then they're ordering stuff. And then they find out, oh, this specific cabinet is six weeks out. It's like, okay, but what is the cost of that?
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Hold time and market risk. Because it's not just the holding cost. Interest rates go up. Things change, right? If some sort of global event happened, it's going to affect you negatively. And you're putting yourself at risk.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
I'm guessing some of you... That's the cheapest, right? You could get a Home Depot line of credit. You can put stuff on your credit card. You have a 28-day grace period. If you're a new business owner, you can get a 0% credit card for 12 months. I mean... I agree with you, right? That's the least... The materials are the least of your capital raise, right?
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Yeah. 15 or 20 grand. Yeah. Right.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Here's the thing. Divide your after-renovation value by your profit. You know, when I do my numbers, when I buy a house, it's a minimum of 10%. You know, if I'm going to resell a house for 800 grand, I need to make a minimum of $80,000. That's right. Because God forbid anything were to happen, right? You know, and you might go over on construction a little bit. The market might shift a little bit.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
You might go over. It's almost always in my world. Yeah, I mean, it depends. I account for it.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Or you add something or you change something because you're like, oh, I'm going to get a good ROI on this.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Yeah, I mean, profit destroyers, you have to look at your profit destroyers, right? One of them is holding costs. Another one is, you know, over-renovating. So those are two out of the five that I kind of focus on. And, you know, I lost money on two big flips where we were doing these huge additions that were taking forever, you know, multi-step permits, right?
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Right. So you're going to do it, you know?
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
No, it's not. And I don't renovate just in one city. It's one state, but a few different counties. And New Jersey is the most densely populated state in the country, and it's very different from town to town. So the way that I make decisions on stuff is not necessarily systematic. It's what has sold in that geographic area over asking price Um, and you know, what is the trend in that area?
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
What do people want in that geographic area? And then I make my decisions by just looking at what the data is. Yeah. And then I make the decisions on what we're going to do in that house based on that. So I don't go and buy, you know, 20 toilets, even though most of the time I use the same toilets.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
I don't do that and warehouse it because the discount that I'm getting, you know, for that is first of all, there's logistics, there's headaches, there's stress. Um, this breaks that you're past the refund period, et cetera. It's not worth it. Right. And then the cost of warehousing it. Yeah. It's, you know, it makes no sense.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
The only thing that I've done a little bit is I'll buy like five appliance packages or something on the 4th of July sale. So that was like a really good sale. And I'm like, all right, I'm saving 10 grand if I do this. And then Home Depot store it for me for three months. And within three months I'll do it. That's a huge takeaway. Yeah, so little things like that.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
But I don't store everything or buy anything from China or import it.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Some permits have three or four stages. And I looked back at my track record and my history and I said, okay, you know, which are the ones that I've made the most amount of profit and most margin on and were the least stressful on? And it was the ones that we actually did the quickest, right?
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
And the reason why I have a project manager and not, you know, just do subs or not just do a GC is because we all have to understand that contractors are inefficient. So by actually having all the materials, you're making them more efficient because they typically will send a guy or two to like help to Home Depot for hours out of the day, multiple times. Yeah.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Just think about how much is lost during that. That's right. And over and over again, compounded over the job. And you're paying for that. That's right. Even if you're not paying people per day, you're still paying for that.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Everything adds up and you have to reduce your profit destroyers. Like my business model is a little bit different than yours. And, you know, my goal is to do 10 to 15 flips that net a hundred thousand dollars or more per year. Or per deal, right? So if I can, I'd rather do one $100,000 profit deal than three $35,000 deals. That's right. You know, it's just an efficiency thing, right?
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
And I go after more affluent areas. Why? Because less people are marketing to those areas because most people are buying in the lower priced areas. So I have less competition. I buy in the higher end areas and private lenders, which is what I use, like to invest in high-end areas because they're like, oh, I know that town. That's a great town. I'm like, yeah. And they're like, yeah, let's go.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
It's just all around, it's different. So you have to decide on your business model and how you want to do it. And I don't leverage the fact that I'm on a show and all that stuff, and that's why people lend me money. I've been borrowing private capital since 2007, when I was 21 years old. So anybody can do it.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
And if you need to start out with a hard money lender, putting 10% down and taking the construction draws, whatever, you get a couple of deals under your belt. But if you show that this level of efficiency, even if it's a 30-day... right now that's better than what most people are doing that's right and the model makes more sense
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
You know, reducing our holding costs, but then also that we were very strategic on what it is that we did for renovation, right? There wasn't that, you know, we weren't doing additions. Those are the ones that I've lost money on. So some people are very successful with those, but that's how we came up with this 24-hour flip business model.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
I always had that same concept too. And then, you know, when inflation started getting crazy, this is just my opinion. Sure. Yeah. Affluent people are less affected by inflation.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
And people that are in the $200,000, $300,000, $400,000 range, and in New Jersey, that looks like a $500,000, $600,000 range because the prices are so high. At least in my area of New Jersey, they're a lot more affected by inflation. Yeah. So, and the interest rates being at 7%, which they are right now. Right.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
So that was always, you know, the idea, because I don't see a slowdown in the $1.5 million, $1.2 million, $2 million homes.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Yeah, most people are buying cash.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Right, or 50% down or something like that. Yeah. So, you know, and look, they all work. You can, it's not, you know, this is the only way to do it. There's a million ways to make money. It's just, what do you want? What are you excited about?
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
private private i do 50 private right so i still like using hard money because then i don't have as much need for the private um neither is wrong no and i used hard money like yeah and on the 24-hour flip there was a you know one of my private lenders was like hey i'm actually buying a property i'm not lending money on this deal and and he had earmarked that money for my deal
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
So I went to my local hard money lender, right? Alpha Funding. Okay. They're awesome. And, you know, they closed that deal in less than 10 days. That's great. Right? So, you know, hard money is another form of capital, right? What I dislike about hard money is the monthly payments. There was a time I had 26 properties at once and my bills were $65,000 a month.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
So I would flip a house, make money, and then that would pay next month's bills. That's right. Right. So, you know, the chokehold is really that monthly payment. If you can do it with private capital, you know, I do it where you invest the money and then you get the money back plus your interest at the end of the deal when we close. That's where there's no monthly payments.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
And you don't have to go nuts renovating an entire house and knocking down walls, and the kitchen's not perfectly placed, the sink is here, it could be over there. All those things are going to add to the inefficiencies of a project. And most people, the way that they actually do a flip is... You know, they get an offer accepted. They go through due diligence. They close on the property.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
And God forbid that you're in a market where things go sideways and then you're stuck holding the bag and then you're like, shit, all the profit that I just worked for. That's right. You know, is in these deals and now they just all went down.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Um, I mean, the inventory is very low. I think that has a lot to do with New York City, even though New York City is bouncing back. I think the Trump administration has definitely helped from a perspective of hope and, you know, the areas that had high crime and stuff like that, like some of the areas in New York City, people feel a little bit different now.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Meaning in a more optimistic way. Sure. So, you know, we might see a little bit lower of an influx in New York, but then it'll bounce right back and we get kind of the overflow. Why? Because when New York is doing well, their prices go up. And when their prices go up, people seek to find other, you know, properties. And they go to New Jersey. That's right. And if you are...
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
If you're selling like a $1.5 to $2 million house in New Jersey, 90% of your buyers are Jersey City, Hoboken, right? Which are people that work in Manhattan or people in Manhattan or Brooklyn, right? In the nice areas of Brooklyn.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
They're buying in the suburbs. They want good schools and they have, you know, their wife is pregnant. They already have a kid and they want more space.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Right. So we have that kind of benefit in Jersey that we get the overflow from New York. Um, and Miami is like, you know, it's like New York, but with nice weather and more expensive real estate.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
I mean, I'm blown away by Miami and, and there's a lot of opportunity here as well. I just, I've always been the type of person that you can track the space. If you can hit your goals in one geographic area. Your life will be easier if you focus and know everything there is to know. And you know that area like the back of your hand. Yeah.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
That's just, you know, and that's why I like my coaching programs only in Jersey.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Right. I have people are like, oh, in California, can you coach me? I'm like, look, I give my coaching students contractor resources. You know, we go to people's properties. It's very intimate. It's very sure. It's not like a scaled program. Yeah. Right. So it's that's why we just focus in on that geographic area.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
It's very localized real estate. Of course. And if you, but you have people on the ground too, in those geographic areas that you're typically like partnering with. So it's a little bit different.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
You know, then they go inside the house and they go, OK, you know, let's hire the architect. Right. Right. And he takes two or three weeks. Right. And then, you know, once you have the plans, then you're having your contractors bid it out. You know, then by the time you actually hire the contractors and have them sign and seal the permits, you submit it to the town. That's another three weeks.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
I don't like to partner with people.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Cause I don't know if they did their tax returns or not. Exactly. And we go to sell the house and now we got to pay their tax bill.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Which has actually happened to me before.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Yeah. Yeah. So I try to keep it as simple as possible. But, you know, when you're doing business, you just need to decide on, you know, you can make money in any area. It doesn't matter if it's low end, if it's high end, if it's one area or nationwide. Like, I'll look at anything nationwide if it's commercial. Because it's strictly based on cap rate, which is easy to find.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
And it's based on the numbers of the income and the expenses of the property, right? You're just coming up with the NOI and dividing it by cap rate. That's the value. And you want to get it cheaper than that and see if there's any value add or upside to it. So, you know, with those type of properties, it's different. In single family construction and flips...
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
I feel like you definitely need somebody boots on the ground that's going to understand that municipality and all the little quirks from that area. Across the street, it could be a totally different school district, right? And that school district is less desirable.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
There could be negative stigmas in that area, external factors that you really can't control that you wouldn't know if you weren't there locally.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
You're not scheduling him, getting him here the next day before that guy can move on to his piece of the work. Right. You get things done.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Yep. Two people can buy the same house, and one guy hires the wrong contractor, the other guy hires the right one. One guy makes money, the other guy loses money.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
And I feel like construction is going to go up in price now. For sure. Because a lot of people that are, you know, undocumented are in the construction business, at least in New Jersey. Sure. I speak fluent Spanish. My mom was born in Uruguay. You know, she immigrated here.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
So, you know, I kind of have an advantage that I speak fluent Spanish and, you know, but a lot of our guys, you know, that are contractors, you know, they're licensed, they're insured, et cetera. But then for them to get the laborers that work, I mean, you know, I don't ask if they're documented, but I don't think a lot of them are. Yeah. That's right. Right.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
So, you know, is that going to put pressure on the construction industry, making it even more expensive?
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
It's things that people need to think about. That's right. Right. And you need to, you know, you need to know that trades people, there's less and less of them. And the ones that have been around for a long time, they're not being replaced. Right.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
right they say if you want to make if you want to become a millionaire don't you know don't go to college become a plumber right become an electrician why because there's going to be so much demand for trades and i don't know if ai and robotics and everything is gonna that's not the first place that you know all that stuff's going to disrupt that's right you know it's going to be everything behind a computer and maybe like menial tasks but not not necessarily plumbing and electricians not to take us too far off the course here as we're wrapping up but like what about all these uh
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Just for them, at least in Jersey, it's 21 days by law that they have to get back to you with permits. That's if they don't want to change. And then before you know it, you're not even starting the job until two and a half to three months out.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Yeah. Yeah. I mean, that's great, but you still need to, you still need to build out the internal.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Think about all the framers. I think it's great. I mean, look, if you're an entrepreneur and you could cut costs and that's a profit destroyer, then you'll be good. There's always going to be people in situations that need to sell their home. And that's what's important. If you're going to get good at one thing, if you're going to get good at one thing, get good at finding deals.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Get good at marketing. Get good at negotiation. Get good at presenting your offer. This is what we kind of focus on. Because, you know, if... If that does get disrupted through different things, then awesome. But if you're in densely populated areas like New Jersey, I mean, you're not knocking down the house and building a new one. Most of the time you're not doing that.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Maybe in other states where there's a lot of land and there's a lot of development, then that could be a huge opportunity to provide affordable housing, which is definitely needed and wanted. And hopefully that will help solve that issue.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
I know, but it's disrupted only on new construction. That's right. So on existing homes.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
It's not going anywhere. That's right. Throw a robot in there. Try to see what happens. Put a robot, make this floor. See what happens. So, I mean, you know, home services industry, I feel like it's going to be one of the last things to get disrupted.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
We have a brokerage, right? We sold 1,600 homes in 2024. Okay. Congratulations. Thanks. You know, we have a few hundred agents. We have four offices. And it's an unbelievable ancillary service, home services. You know, somebody buys a house, they want to do stuff, right? They need ongoing services, HVAC maintenance, power washing, landscaping. You know, there's so many avenues to make money there.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
But a lot of people don't want to put in that grit and that hard work. There's no doubt. People need to get paid if you're going to hire employees. People aren't okay with making minimum wage and just making $150. You can't live on that anymore. Oh, my God. Hell no.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Just Google it, yeah.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
All right, guys. Have fun.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Yeah. So once, so you get a house under contract, what you should do, this is what we do. You get a house under contract, your past contingencies, right? Title's clear. You know, you're closing on this damn house, right? I've never had past due diligence and I'm never past due diligence and title is clear and I don't close.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Right. So I still typically have three or four weeks to close because people don't move out right away. Right. Right. So I schedule my closings typically 45 to 60 days out. So I still have 30 days. So in those 30 days, I put a clause in my contract when I buy it that you're gonna allow me access to the property with 24 hours notice for my architects, for my contractors, et cetera.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
So we go in there, we start measuring everything. We start doing the detailed scope of work all the way down to the doorstops behind the doors, right? And we purchase all the materials before we even close on the house. I'm ordering windows way ahead of time. It takes four, five, six weeks sometimes for windows. Yeah.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
So 100% being ready to rock and roll when you actually close on that property is going to reduce your holding costs significantly. But construction, if you really think about it, there is a sequence of construction. You've got to frame before you put up sheetrock. But there's a lot of things that are also able to be done simultaneously on a property. And you see that on the show, right?
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
If you're taking down a fence and you're doing the roof and you're painting inside and the plumber's doing his rough and the electrician's doing, you know, replacing outlets, they can all be doing that at the same time. But that's not how investors work, right? Investors hire plumber on Monday, plumber's on Tuesday, I'll be done Thursday.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
And then he comes by himself or maybe with one guy and construction all comes down to planning. And it also comes down to man hours, right? And what a lot of people don't realize is that multiple things could be getting done at the same time. And if you ask the contractor to bring more guys, for example, a painter, instead of having two guys painting, you have 10 guys painting.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
You can get it done faster. It's just on how you plan and how you set it all up.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Well, not necessarily because if he had two guys, they would just be there longer.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
So he would be paying those guys over five days, right? Which is 10 days.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
And it's all percentage of profit, right? If you're making a $200,000 profit, it's different than if you're making a $50,000 profit.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Yeah. Yeah, I mean, it all comes down to pre-planning, purchasing. And, you know, I don't hire general contractors. I hire a project manager. I typically pay them a percentage of the profit. Or I do a flat fee.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
okay so the project manager is hiring directly the subs they're organizing everything and i i'm doing it with them and then you know but we're choosing everything ahead of time i think one of the most important things is people get caught up in i want this to be in a magazine you know and i'm dramatic but like they just want it to be the best thing yeah it's not necessarily what's the best for profit it's it's what's going to look the best on instagram i think that is such a big thing is people need to think about profit first right and no pun to the book but like
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Yeah, you buy a house that has mold all over it, you have to gut it to the studs. That's right. I mean, you're not going to provide an unsafe property, right, for somebody. So not every property will qualify for the 24-hour flip business model. And to clarify, it's two 12-hour days. Right. So the first 24 hour flip that I did was literally 24 hours. And that's, you know, that's it.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Yeah, that was that was I'm glad you said that. I mean, we almost we almost died that day. Yeah. And it was horrible. So we just do it in two 12 hour days. Can you do it in three eight hour days? Yeah. You know, the idea is not necessarily to do a flip in 24 hours. It's to inspire people to do a three month renovation in seven days.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Right. Just, you know, reduce your holding time, reduce the amount of stress and not for nothing. But when you have the plumber, the electrician, the framer and everybody on site on your property, what happens if you have an issue? You're like, hey, you call him. He's in the other room. You're just like, hey, come over here.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
You're not scheduling him. Yeah. Getting them here the next day before that guy can move on to his piece of the work. Right. You get things done. Right. And it's it's very unique. And the contractors freaking love it, Justin. Yeah.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
What's up, man? Thanks. You're more famous than I am, even though I have a TV show.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
So, you know, I always, a lot of people ask me because, you know, I do have a coaching program for New Jersey students only.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
No, just Jersey.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
They can go to flipwithjohn.com.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Yeah, so I always tell my students when they go, well, how do you do it and what do you pay people? Well, it depends on how many deals you're doing. If you're doing one deal a year, you're going to probably pay a project manager a higher percentage of the profit. If you're doing 10 or 15 flips a year, then you could do a smaller percentage of the profit, okay?
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
What I've done recently is just pay a flat fee, right? So they're actually getting paid to do that job and it depends on the scope of that job. So it'll be anywhere between like $10,000 to $20,000 flat fee, but then they're managing all the subs and doing all that, right? Yeah.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
So you, I mean, if you're making a hundred grand and you're paying them 15, then you're paying them 15%, right? That's right.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Glad to be on.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Right? Just, you know, reduce your holding time, reduce the amount of stress, and not for nothing, but when you have the plumber, the electrician, the framer, and everybody on site on your property, what happens? If you have an issue, you're like, hey, you call him, he's in the other room. You're just like, hey, come over here.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
So number one is having the most detailed scope of work you possibly can. And that includes pictures and videos. Right. So I do a Matterport of the before and I'll literally sit in my house for a few hours going through the whole entire Matterport. And for those of you that don't know, Matterport is just like a 3D tour of the property.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
And I will write down every single little thing that needs to be done.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
okay everything by room and by trade i you know i categorize it then step two is going to i do 24 phases each phase is one hour so i go okay what's going to be done in phase one right demo cleanup you know depending on what you're doing we're taking down the fence we're throwing this out everything if you have a flagpole that's rusted we're taking that out you take that down
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
That's in this phase one scope or phase two. And then you put who is assigned to that, what trade, plumber, electrician, HVAC, demo, et cetera. And you might have like, I hire people just to clean the house the whole time. They're just cleaning.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Yeah, they're just cleaning, cleaning, cleaning. I have one person that's gone hydrating everybody, giving them water. Right. And, you know, it's a little bit different than your normal job. We get, you know, we get food for everybody. We have a runner to Home Depot or Lowe's or, you know, whatever.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
They're literally waiting in their van. They're going, you know, they're waiting in the Home Depot parking lot. And hey, I need this. And then they go in and then they come to the house.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Right. So, I mean, it's simple. It's simple, simple pre-planning stuff. And of course you're going to, you're going to plan everything out from lunch, right? Like what time is lunch? Who's having lunch, et cetera. We typically take a break, everybody. And we have a line, people just line up. I don't know if they show that on, on the, on the episodes. I haven't seen them all.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Nope. I mean, it's all documented. It's on A&E, Hulu, YouTube. You guys can check out the episodes. We do full kitchens. We do bathrooms. We do flooring. We paint the exterior. We do roofs. We do windows. We're talking about... 24 hours. In 24 hours, yeah. And we'll get into why we kind of came up with this idea and this business model and how other people can do it. That's why I'm here.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
The other thing that I want to, before I forget, so a lot of people make the mistake in the decision-making phase. Yeah. They're like, my wife will go into a house, no joke, and she'll be like, knock down this wall, knock down that wall.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
And I'm like, no, we're not knocking down walls because that's going to require fixing the floors, getting permits, waiting for them to come and take a look at that we did it right. And then you can proceed. You can't do that if you're going to do a really quick flip. You just can't. And I'm not saying that you don't get permits. You get permits on things that are one-step permits.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
But if there's things that are multi-step permits where it's like, I have to do framing, then insulation, then finish, the finish doesn't matter. But the first two are stopping you from moving forward in your sequence.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Right. So you're literally just waiting. Yeah. And you're wasting money and wasting time. So a lot of times, you know, even though the sink would be better off over here, you know, within three feet, I can move it, you know, and I don't it doesn't require a permit. Right. So I'm not going to move it over there.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
I'm just going to figure it out. And not every house qualifies for this. Some are just functionally obsolete and you do need to make changes. Yeah. You know, but, you know, for example, a lot of times before I used to knock down the wall between two bedrooms and a four bedroom house and make it a three bedroom and put a master math and a walk-in closet. I don't do that shit anymore.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
I don't, I just, I go, no, I'm going to get in and I'm going to get out and not for nothing, but people count your money. So when I get in and I get out and typically I'm on the market within seven days of buying it. Wow. So I'm on the market within seven days in New Jersey.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
I don't know how it works in other states, but it takes about six weeks typically to for the price to show up what you bought it for. So when I'm on the market, nobody knows what I bought it for. That's right. If I renovate a house over two months, three months, and then I put it on the market, they're like, well, you just bought this house for $500. And now you're asking $800.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
It's like, yeah, but when I bought it, they're counting your money. That's right. That's true. I could have inherited it for a dollar. Who gives a shit? But they care about what you bought it for.
The Science of Flipping
How This Investor Flips Houses in Just 24 Hours | Jon Steingraber
Exactly. So it avoids that. It avoids that whole, oh, well, he bought it for this. It's renovated. And a lot of people ask me, well, what about permits? Well, in New Jersey, I don't know how it works in your state, you can look it up, permanent municipality, whatever. Direct replacement is allowed, right? No permits.