When it comes to flipping houses, there are many levels of playing the game.
How Fast Can A House Be Flipped
Amateurs who do it themselves with their own money part time will flip 1-2 homes per year. This is limited by the fact that a distressed home with $40,000 of work usually has roughly 2000 man hours of $10 per hour labor inside of it. So if you do the math, a part time amateur has 2000 working hours per year at his job, then does a 2000 flipping job on the side. That is an 80-hour week every week, and you still have to sleep!
How Much Money Can You Make Flipping A House
Expected Income: These people don’t know how to do their numbers properly and aren’t valuing their time so they might make $20,000 to $60,000 extra per year before subtracting their labor value. When all the math is done, they are better off working at McDonalds for $11 per hour guaranteed.
A part time hobby investor who is a little smarter might do 3-6 deals a year, this is someone who has developed systems and has crews and little bit of financing to expand the business. They are still showing up on site and jobsite managing.
Expected Income: These investors are likely making $20,000 to $30,000 a house x 6 so they can get into the six figures $100,000+ in earnings
A professional investor is someone who is doing 12-50 deals a year and has multiple crews, multiple teams, managers, an acquisition team, assistants, financing, an office, etc. This type of investor is full time with a team of full time professionals behind him and millions of dollars of investor capital.
Expected Income: These investors are likely top 1% income earners in the $250,000 to $350,000 range.
The super investor, someone who does 100-1000 deals a year, these are large organizations with sometimes hundreds of employees in multiple cities, institutional financing, and sometimes have wall street support. These types of investors are usually mostly in America and not Canada because of the size of the market, the banking system, and the investors looking for deals.
Expected Income: These investors are making $1,000,000+ annually and are the superstars of their industry.
No matter where you want to be on the food chain, the next level typically comes with growing yourself as a leader, growing your knowledge base, mentoring and coaching.
I believe anyone can get up to the professional level if they really want to, flipping houses is not rocket science.
Respect The Grind,