Real estate business - Value

[Engelo Rumora]

Hey guys,

I hope your well.

How much could you sell a real estate business that makes $1million in profits via flipping houses. I know more variables would need to be calculated but I would be happy with your rough estimates. I am interested in getting an approximate value multiplier. So for example 1 x 3 or 1 x 4

($1million profit = $3million value)

Also, please feel free to share if you know of any other similar business that sold and for what price compared to profits.

Thanks for reading an I am looking forward to your replies.

[Brie Schmidt]

A property management company would be similar. Their value would be determined by the value of their contracts. So with 100 clients - say 25 have contracts through the next 90 days and then need renewal. the other 25 are 6 months and the last 50 expire in a year.

The value would be based on the value of the contract until it's renewal - that would be the main asset for the basis of valuation.