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Posted about 9 years ago

Everyone wants to flip, buyer beware...

Flipping has become a phenomenon, everyone who is interested in real property wants to invest by flipping. Why wouldn't you? After all we see Armando Motelongo flipping houses and making $100k per flip and he has his super model wife managing the projects and all he does is pull up once a week with his greasy slicked hair and tell everyone they need to step up and then leaves in his $80k sports car.

I don't know the Atlanta market but I do know a few markets and it is very rare that anyone makes over $20k-$30k on a flip and in my market you are more likely to make $10k-$20k per flip IF you don't make any mistakes, all it takes is a few little mistakes and you are now breaking even or losing money.

I have a hand full of flippers that I work with and I also do flips but if you are going to start flipping or want to learn more about it my recommendation is do it because you enjoy it not because you want to be rich, if you don't enjoy making a ugly house beautiful then you won't be successful in flipping.

The passion will fuel you to success if there is no passion then go find something your passionate about and create something great in that. 



Comments (3)

  1. I think this has a lot to do with where you are investing. I know a young guy in Ohio doing student housing flips, average price $30-$60k homes makes a good profit (relatively) makes around $200k a year. I know a cash buying rehabber in Los Angeles ( average buying price $350-$700k) makes over $2M a year. Flip the right apartment, multifamily in the right location ( NYC) and you make gazzilions. Atlanta has some of the lowest price ( luxury homes in the nation) on the north side. Buyers and renters, can get great deals all over the city so in my estimation, maybe a tougher market to flip for big profit?


  2. @Jeff Rabinowitz 

    That is a healthy number to shoot for and maybe in your market that is easy to obtain but I still think for new people looking to flip they need to know that it isn't as easy and fun as everyone makes it seem on TV.

    In my market there are not many deals that would meet your number, at least not on the MLS but I am working with on other avenues to achieve higher results but only time will tell.


  3. Most of my partners won't do a project if the expected profit does not top $20K. I will probably not participate in a deal if the projected profit is only $10K unless I know the rehabber very well, the project is very similar to one he has done recently, and there is a compelling reason to do such a thin deal. It is not rare, at all, for rehabbers to clear $30K, $50K, or more on a deal.