How many properties do you flip a year?

Question

I am just curious approximately how many homes people are flipping a year? Also what is your business structure set up like? Marketing team? Project managers? Sales sam? etc.. Thanks

Brad Chandler · Answer

We bought 176 homes in 2012 and about 100 in 2013. We have 2 full-time acquisitions folks, controller, office manager, production manager, 2 project managers, construction VP, myself and my partner. Our goal is to do 150 in 2014.

Jessica H. · Answer

Thanks for all the comments. It's great to get an ides of what others are doing. We are planning about 6-8 this year as we are just starting out and taking in a rental also. My husband is project managing and I do the marketing end/work with realtors for acquisitions/sales, another partner does capital raising. I agree with striving for quality over quantity.

Rich Weese · Answer

I'm the contrarian. I think the most I flipped in one year was about 30-40 in 2009-2010. I've done less each year as margins have dropped. I don't want to work hard enough to find any with decent margin. Switched to building new specs 3 years ago and slowing that down now. I expect further restriction of inventory and margins to continue and want to be ready with cash to pick up pieces if/when next crash or crumble comes. Rich

p.s Maybe I'll build an assisted living center here  in Central FL to compete with The Villages high prices on assisted living tenants. Rich

Will Barnard · Answer

I was averaging about one per month, however, in 2013, I only had less than half that in closed sales for two reasons. One was the fact that I have been concentrating on high end homes that take much longer to complete and sale and two is timing, I had a few that closed towards the end of 2012 and am holding 6 projects currently, some of which I expected to be out of by years end but that has not happened.

I will point out that quantity of flips is much less important than quality. What I mean by quality is profit. While I could easily have 20 sales in other parts of the country that only net $20k, I can make the very same profit flipping just two deals here.

J Scott · Answer

We average about 15 per year.  We have a full time project manager in each of our rehabbing locations (cities) who handles the day-to-day rehabbing, and my wife and I focus on acquisition (me) and sales (her).

Dell Schlabach · Answer

@Brad Chandler are you buying cleaning up and renting? Rehabbing and renting? Whats your average rehab cost? Rehabbing and selling?

Curious, if you don't mind providing more detail.

Apparently a lot of room to up our game.

Dan Sullivan says, its easier to grow 10x than increase by 50%.

Shaun Reilly · Answer

What kind of margin per deal do you average on that kind of volume?

Mark Ferguson · Answer

My goal is 15 in 2014.  We did around 10 in 2013.  Right now we have two contractors.  I am the agent, list the homes, buy them and my wife manages the repairs.

Dell Schlabach · Answer

Forgot to mention, Re: marketing, we buy 85% mls, others are word of mouth, short sales wholesale deals through a local investor,  etc.

I just hired a full time admin guy, we will start marketing for homes in March, to go after non mls deals.

Sales, we use the top agent in our area to list our houses at a significantly discounted listing fee. 90% of our homes are sold that way, the occassional one we sell via word of mouth before they are listed.

Dell Schlabach · Answer

We got 15 done in 2013. Way below target.

Our setup was three crews of three people, each had a reasonably competent crew leader, doing projects start to finish.

I had a fourth that was going to hire all subs to do projects, that one worked out poorly and got one house done in six month, and barely broke even.

End of the year we restructured and build the ATeam, they will do demo, framing, decks, windows and framing. That team leader also does scheduling and managing the following subs,  roofing, drainage, structural, concrete,  electric, plumbing, drywall,  paint and landscaping.  The other three core crews are now interior crews, doing kitchens, bath, flooring etc to reduce their time on jobs to three weeks avg, instead of 8.

We will see how this works out. If we can get this,  with some vacation time, shooting for 48 this year. Half of what Brian Burke is doing, but ill be happy if we get close to the target.

How many properties do you flip a year?

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