How many properties do you flip simultaneously

Question

I have flipped four houses to date and typically look for properties that guarantee a healthy margin. Sadly, wholesalers have been bringing deals where one cannot make say $100K a flip but rather a number much smaller requiring me to do flips in volume. What has been your experience?

Alecia Loveless · Answer

@James McGovern I typically only work on 1-2 projects at once because I only have one reliable contractor. He actively tries to save me money on most projects and does a lot of other work for me.

My market is tricky for finding contractors and the really good ones are booked 1-2 years in advance so just bringing on multiple projects would not do me any good.

Learn your market and get to know your contractors and the work load they can handle and how quickly they can get to your project to help determine your best course of action.

Personally I’d try to stick with 1-2 projects that had a potential for higher margins than to try to scale up and need more workers and more headaches.

Matthew Crivelli · Answer

@James McGovern

I would stick to your guns and only purchase the property if it's a good deal. I don't think making less and doing more is the answer. It just opens the door up for problems and these problems could sink you if you are over leveraged. (Say having 4 bridge loans out at once)

Maybe trying a direct mailer and see if you can get a property under contract without a wholesaler bringing you a marked up deal? (This is what a wholesaler is doing) I know this is a huge issue the CT market right now. Very hard to find the right deal.

Scott E. · Answer

The deals that wholesalers send are equivalent to the houses that actually hit the open market. For every 100 deals they send, 1 might be an actual deal.

To answer the question in your subject line - I flip between 1-3 properties at a time. I'm very picky.

Caleb Brown · Answer

Deals is the hardest part right now. Relying on others(wholesalers, agents, etc) will have smaller margins, sometimes there's great nuggets. You can just do more volume with less margins to scale since that's a constant flow of deals. Another way to scale flipping  is contact owners directly. That can be postcards, calling, websites, ads, etc. With this you can target areas and cut out the middleman. It's not feasible for everyone but if you can swing it it'd work out

How many properties do you flip simultaneously

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