In this episode of the Note Closer Show, host Scott Carson sits down with real estate veteran Felipe Soares to dissect the realities of the 2026 fix-and-flip market. With over 18 years of experience and more than 400 rehabs under his belt, Soares provides a masterclass in transitioning from wholesaling to high-volume rehabbing without using your own capital.
The Anatomy of a Successful Flip
Soares emphasizes that while the business is simple, it is far from easy. He argues that the biggest mistake investors make is failing to truly dial in their After Repair Value (ARV). In a market where values can fluctuate by 10% or more, Soares suggests that if you cannot accurately predict the ARV, you shouldn’t touch the deal. He also stresses the importance of the 78% rule; paying more than 78 cents on the dollar (including repairs and holding costs) often leads to negative returns for short-term projects.
Efficiency is the name of the game in 2026. Soares reveals his "rule of thumb" for timelines: every $10,000 in scope requires two weeks of work. To maintain this pace, he operates his own licensed construction umbrella, managing four dedicated general contracting crews that work exclusively for him. By purchasing materials directly and leveraging "Pro" relationships at major retailers, he maximizes margins while earning millions of travel points to fund a first-class lifestyle.
Key Topics Covered:
- The Power of Persistence: Soares shared how it took him 18 months to close his first $3,000 wholesale deal, proving that "putting in the reps" is the only way to reach $60 million in transactional volume.
- Precision Underwriting: Why the ARV is the ultimate "deal killer" and why investors must account for the 90-day FHA anti-flip seasoning rule when projecting exit timelines.
- Leveraging Technology: The use of AI tools like CubiCasa for instant floor plans and Richer Values for AI-driven appraisal data even in non-disclosure states like Texas.
- Relationship-Based Contracting: Why treating contractors "like family" and keeping them busy year-round is better than always chasing the lowest bid.
- High-Impact Aesthetics: Focusing budget on "Say Yes to the Dress" moments—specifically kitchens and master suites—using quartz counters, heated floors, and strategic lighting to trigger emotional buys.
Felipe Soares’ journey from an underage investor trying to sneak into networking events to a "Stud Muffin-aire" educator proves that success in real estate isn't about luck—it's about systems. By combining conservative underwriting with modern AI tools and a "boots on the ground" approach to project management, investors can navigate even the toughest market cycles. As Scott Carson notes, the only way to reach the top is to take these tactics and move into action.
Watch the Original VIDEO HERE!
Here is a list of websites and tools mentioned in this episode:
- CubiCasa: A free mobile app used to scan a house and generate a blueprint with actual measurements, CAD upgrades, and floor plans within minutes.
- Richer Values: An AI-powered tool that provides accurate After Repair Value (ARV) data and appraisal-level documentation, even in non-disclosure states like Texas.
- Real.Vision: A professional photography service used for high-end property marketing, providing interactive virtual tours, drone shots, and dedicated property mini-sites.
- Home Depot Pro & Managed Elite Account: Felipe leverages high-level "Pro" relationships and the "ProDesk" to get bulk discounts, special pricing on paint, and managed deliveries.
- Floor & Decor Pro: Used for interior design coordination and logistical management of flooring materials across multiple stores.
- REOLink: An LTE-based security camera system that runs on SIM cards and battery power, allowing for remote monitoring of job sites without Wi-Fi.
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