The Millionaire Blog

Short answer is yes you can make some serious money flipping houses, but you can also lose your shirt if your not careful. In this post I will go over just how much money you can make and we will look at some of the mistake you can make that will cost you dearly.

How much money you make will depend on several variables. One important variable is time. How much time can you devote to the business of flipping houses? How much time is it taking you to buy, fix, and flip the house? If your real estate investing career is part-time than obviously you will not have as much time to invest in the business as someone who is doing real estate investing full time. Most real estate investors start part-time and work their way up to investing in real estate and flipping house full-time.

How long is it taking you to buy, fix, and flip the house? Here is where you can shave weeks or even month off the process, if, you choose your team wisely.

Do you have a real estate agent looking for houses that you can invest in?

Is he good at finding deals?

Does he jump on them with your offer before someone else does?

Do you have the capital ready and waiting to buy these house?

Do you have a closing attorney, escrow company, etc, that move the process along rather quickly?

Once you have the house, hopefully in a timely fashion, you will depend on your contractors to get it ready. If they are slow they will cost you money. If they do shoddy work they will cost you money. You had better find a good one, and for goodness sakes, PAY THEM WELL. If they are good they will be worth every penny. In fact, good contractors will help you make money.

Once the house is done and ready to be put on the market do you have an agent who can sell it fast? Some investor use one agent for both buying and selling their properties. I disagree with this approach. selling agents or agents that specialize in listing properties have a very different skill and mindset than buyers agent. Have one of each who is outstanding in their niche.

Now that I have given you a highlight of some of the variable that can affect your time line and the number of houses you can flip here is the math.

I recommend you get deals that have a $15,000.00 to $20,000.00 dollars or more profit potential. If it’s anything less than this, personally, it’s not worth my time and investment.

Most part-time investor on average can probably do about 4-6 houses per year comfortably. (Good team and good management skills). At this rate you can possible make $80,000.00 to $120,000.00 per year.

Some full-time investors do double that amount and some exceptional, but rare, investors can do 10 times that amount.

And now for a bit of the ugly side. You can lose money real fast if you tackle a project that you cannot handle. A house that needs major structural work that you did not anticipate can cost you thousand and eat into your profits.

If the house for some reason doesn’t sell, it will cost you money to hold it until it does.. If the market takes a nose dive you can usually rent your house for a time and then sell it. You also have to be careful you don’t run out of money to complete the repair work needed.

In conclusion, the answer is a resounding yes to the question of “Can You Get Rich Flipping Houses?, just be careful and do it wisely and don’t get in over your head.