Overview
Austin Flipsters Portfolio 1 is a portfolio of fix and flip investment properties managed by the faces behind YouTube's number one house flipping channel: Austin Flipsters.
The company plans to acquire, renovate, manage, and dispose of a portfolio of single-family homes in and around Austin, Texas. Our intended strategy is to focus on acquiring properties that we believe:
- Can be purchased at a compelling value based on current market conditions;
- We can add value to through design and renovation and;
- Have significant potential for capital appreciation
Austin Flipsters has paved the way for house flipping on social media—their Youtube channel takes their audience of 170k+ subscribers behind the scenes, showing the ins and outs of the renovation process. And now, Austin Flipsters is giving viewers the opportunity to invest in their house flips.
Market
After outpacing all other large markets by the end of 2020, Austin’s housing market is again expected to be the nation’s hottest in 2021, according to Zillow.
The Austin, Texas real estate market has been booming as demand to live in the state’s capital shows no signs of slowing. Relocations and expansions from major corporations including Tesla, Amazon, and Oracle among many others are due to the city's thriving quality of life and Texas’s friendly business environment. In 2020, the Austin residential real estate market saw an unprecedented 20% increase in the average price of homes sold. The median days on market for Austin homes in December 2020 was a jaw dropping 9 days. Local real estate brokerages have seen an increase of 331% in inbound marketing calls for would-be home buyers. Demand for real estate in Austin and the surrounding areas seems poised to continue for the foreseeable future.
Austin in the News
- For the second year in a row, Austin was ranked as the #1 best tech town in the U.S. in 2020 by CompTIA.
- The New York Times reported that the number 1 pick for people leaving San Francisco is Austin, Texas, according to moveBuddha.
- Apple is opening a $1 billion, 133-acre campus that could accommodate up to 15,000 workers.
- Tesla announced that it would build its newest automobile factory near Austin, and in November 2020, said that Elon Musk's transit-oriented underground tunneling project (the Boring Company) would expand to Austin. Elon Musk is also moving the Musk Foundation to Austin.
Strategy
Austin Flipsters has 15 years of experience acquiring and renovating residential real estate in and around Austin, Texas.
We primarily source residential properties from our local network, paid online and offline from marketing investment-grade houses as well as our social media following. We are selective about choosing projects in which we believe we can deliver value and command top of market upon sale. Typical project timelines can vary from 3 months to a year depending on the scale and complexity.
We have deep experience sourcing evaluating, negotiating, structuring, closing, renovating, and managing such acquisitions of single-family homes, and intend to leverage this strategy for this offering.
Offering
We are offering up to 500,000 membership units of our Company for $1.00 each. The proceeds of the offering will be used to acquire and renovate properties during the Investment Period (as defined below).
The “Investment Period” means the period commencing on the date of the initial Closing of the Offering through December 31, 2022, during which time the Manager shall have the right to reinvest any proceeds received from the sale of properties.
We will distribute the net sale proceeds to Investors for dispositions made after the Investment Period.
Management Fee
The Manager shall be entitled to 50% of any Profit (as defined below) derived from the sale of the Properties, in aggregate. “Profit” is defined as all remaining proceeds after the repayment of any debt and accrued interest as well as the return of each equity investor’s initial capital investment.
Austin Flipsters, LLC is a media company with which the Company is affiliated. Austin Flipsters, LLC operates the Youtube channel “Austin Flipsters,” producing videos that feature houses flipping projects performed by Lincoln Edwards and Lauren Ahrens. The Company may purchase services from Austin Flipsters, LLC in the future to market its projects. However, Austin Flipsters, LLC is not the issuer offering and selling its membership interests in this offering. Investors will not participate in the assets or income of Austin Flipsters, LLC nor will investors in any way benefit from the appreciation in value of that company. The Company plans to use the proceeds raised from this offering primarily in acquiring properties for renovation and sale and all of such projects are unrelated to Austin Flipsters, LLC.
Track record
Austin Flipsters has a strong track record of buying, renovating, and selling single family homes in Austin Texas. Below are select projects that Austin Flipsters has successfully flipped.
Sweet Split-Level
Our sweet split-level project started out a little sour. We had to contend with an awkward layout, a nightmare contractor and a buyer that almost backed out at the last minute. But in the end we were able to make lemonade out of this lemon. We opened up the entry and main living spaces to give this split-level a more functional floor plan. It ended up being one of our favorite designs yet.
Project Overview
- Built: 1981
- Square Feet: 1,774
- Bed/Bath: 3/2.5
- Purchased: $188,500
- Renovations: $63,200
- Sold: $323,500
- Gross Profit: $71,800
- Days on Market: 7
East Austin Bungalow
The East Side of Austin is booming. It seems like there's a new condo going up daily and a trendy chicken place on every corner of this rapidly gentrifying area. Our charming craftsman is located in Boggy Creek an area just East of Downtown. Homes in the area are rapidly appreciating and developers have started to put two homes on a lot. In fact , the buyers of our home added a "b" unit to the backyard of this property. This was a fun one design-wise-check it out!
Project Overview
- Built: 1990
- Square Feet: 1,048
- Bed/Bath: 2/2
- Purchased: $260,000
- Renovations: $75,000
- Sold: $415,000
- Gross Profit: $80,000
- Days on Market: 4
90210 House
This house (which we affectionately call the 90210 house because of its awesome 90's throwback features) has been in our rental portfolio for several years. Because home prices are booming in Austin and rental rates have not kept pace it only made sense to off-load this bad boy and use the equity for more flips. Located in the Riverplace neighborhood of West Austin near Lake Travis, this house received a cosmetic rehab when it was first purchased so the only thing we had to do this time around was stage to sell. We wanted to highlight some features and downplay others. Staging to the rescue!
Project Overview
- Built: 1994
- Square Feet: 3,824
- Bed/Bath: 4/3
- Purchased: $450,000
- Renovations: $75,000
- Sold: $575,000
- Gross Profit: $50,000
- Days on Market: 21
The Lady Bird House
Meet Lady Bird. This 1970's Ranch House needed a major face-lift to bring it back to its former glory. We had a little bit of everything with this one-foundation work, a new roof, all new kitchen and baths. Using our favorite grey/white color combo we were able to make this regal lady shine.
Project Overview
- Built: 1973
- Square Feet: 1,335
- Bed/Bath: 3/2
- Purchased: $230,000
- Renovations: $60,000
- Sold: $373,000
- Closing Costs: $20,500
- Profit: $62,500
Team
Austin Flipsters Portfolio I is managed by Houndstooth Capital Real Estate I, LLC which is controlled and managed by Lincoln Edwards. Lauren Ahrens consults for the company and provides essential design, marketing and project management services.
Lincoln Edwards and Lauren Ahrens are the creative partners behind the hit Youtube channel, Austin Flipsters (10 million+ views, 150k+ subscribers). Together they take their audience along for the ride on their adventures renovating houses in Austin, Texas. Austin Flipsters has pioneered the house flipping entertainment genre for the social media age, giving their audience extensive access behind the scenes to projects, and letting subscribers weigh in and vote on project design decisions. Lauren and Lincoln are long-time friends since they first met and interned together in college.
Lincoln is a seasoned real estate developer and entrepreneur with experience buying, selling and developing over $300 million of residential and commercial real estate. Lincoln has been investing in real estate in Texas for over 14 years. He holds a degree in finance from Texas A&M University and an MBA from Harvard Business school.
Lauren brings a creative flare to all her renovation projects. As a self described “real estate junkie” Lauren grew from renovating her own homes into single family rentals and on to house flips with Lincoln. Lauren brings a passion and creativity to real estate, consistently delivering high-end residential projects with designs that command top dollar in the red hot Austin real estate market. She holds a degree in Marketing from Texas A&M University.
Lincoln and Lauren manage a team of 7 dedicated members to their flipping and media operations.
