How Much Money You Can Make Flipping
How Much Can I Make? - “Flipping” the Coin
You’re here because you want to make money. That’s why many get into Real Estate, so you’re hardly alone in that regard.
It stands to reason, then, that most people want to know the details of exactly how much they should expect to make after climbing into the venture of Flipping Houses and the ups and downs that go along with it.
The most common question we get is “What can you make flipping houses?” “How much can I make?”
Oftentimes people won’t be upfront with you, so allow us to say it. You can make money and you can lose money in Real Estate. What you see online, much like with social media and other platforms, is a highlight reel. People will show you large checks and milestones marking their enormous profit margins. The problem with that, is it leads to people comparing their average days with other people’s best days.
At the extreme ends of the spectrum, we have made as much as $221,000 on one single flip, and we’ve lost about $140,000 on a flip as well.
When Things Go Wrong
The plus side is that when things go wrong in House Flipping, there are usually mistakes that we can point to in order to learn from and improve.
In our biggest loss, which was about six or seven years ago, there are quite a few things that we can look back on in hindsight, and work to avoid making those mistakes a second time.
In a nutshell, we purchased a house in an area we shouldn’t have, in a price range we had no business buying in, during a time when those sorts of houses weren’t selling. Add to that the fact that it was a busy time in our personal lives, that we didn’t have the right staff in place, and a few poor decisions and mismanagement and you end up with a home selling for over $100,000 less than we projected. Oof.
We had taken a big swing with the mentality that you can’t hit a homerun without putting in a little extra effort from time to time. That’s a luxury you can take when you’re having large amounts of success, and we were feeling pretty invincible coming out of an otherwise fantastic year where we were making a lot of money. We took a large number of lessons from the endeavor, and are now in a better position to avoid those same mistakes in the future.
When Things Go RIGHT!
It’s much more fun to talk about when things go right. Making large profits.
$221,000 in profit on one property!
You don’t make that much money without a whole lot of things going right. In this instance, it came in the form of a house that we had bought that came along with a good chunk of extra land. We were able to sell the home and profit around 100-150 grand, but we were also able to sell the additional land in two packages of $40,000 and $80,000 each! Add it all up together and we were able to make a really substantial profit.
When Things Go… As Expected
The most important thing to keep in mind here is that we have been in the business for quite a while now and these are the two extremes of the spectrum. Of all the homes we have had the pleasure of flipping, these two examples represent the highest of highs, and the lowest of lows.
The average for us over the last several years has been around $55,000 in profit on a flip.
You can make that kind of money, too. You just have to get out there and be consistent. You need to have a system, a formula, and a set of tools, and you need to follow it.
There is money to be made in Flipping. There is also money to lose. That’s why it is absolutely essential that whoever you’re learning from out there (if anyone) is going to be straightforward with you as to both the risks and rewards involved in the business.
You want to do it the right way, so you don’t lose money.