Making $1 Million on Your First Deal with Holly McKhann, Episode 19

John Casmon

7 years ago

Her first real estate transaction netted her and her husband over $1 million so it’s easy to understand why she traded in her calculator for a hard hat. But making the hard hat pink was just marketing genius. Holly McKhann, also known as Hard Hat Holly, has thrived as a rehabber with over 200 flips under her belt, and not a single one came from a direct mail or marketing campaign. On this episode, Holly shares her insights on the Southern California flipping market, managing contractors and how real estate agents are her secret to real estate investing.

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Key Market Insights

Saw the pink hard hat at a realty tea party and thought it would be great for branding and a conversation starter
Worked for Ernst and Young and did taxes for small businesses before fixing and flipping homes
First deal was a land development option in Orange Groves for 73 houses, which ultimately netted a profit of more than $1 million
Her husband, Scott focuses on larger development deals and Holly focuses on the flips
Has never sent out a direct mail, instead focuses on relationships and word-of-mouth
Markets: South Orange County for buyers, north side of LA for flips (current projects are in Hesperia near Victorville, Indio near Palm Springs)
CPA rehab deals – rehabs that only need Carpet, Paint, Appliances
Works with partners to JV where partner puts up the money, Holly handles the rehab and they split the profit
Now, Holly pays 8-10% return monthly to investors
Do background checks on rehabber or any partners
Only visit sites 3 times during the project; uses Google Sheets and has the contractor allocate to each line item
Get bids for labor only, she manages the materials
Tries to avoid the million dollar homes, wants something that will sell 30 days or less