How can you double your Money without Flipping Houses

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How can you double your Money without Flipping Houses

Greg P.
Los Angeles, CA · Member since 2009 · 717 posts · 50 votes

Hello, I've been fortunate enough to be doubling my money in the past couple of years by flipping (wholesaling/retailing), but is there any other way in real estate you could do this? Also, how about stocks or something other than real estate? Much appreciated for the advice.

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Jon Klaus
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
14y

Stocks = no control.

Signed,
A 22 year stock investor turned real estate investor

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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    14y

    doubling your money over what period of time? If your talking over one or two years you would need pretty strong price inflation if you are the buy, hold and rent type. I lend money at returns that with interest and points work out to 20% or more per year. Reinvesting the interest earned (compounding) means that I am able to double my money in a little less than 4 years.

    Know some investors do fix and flip able to generate return on capital of about 55% per year.

    With leverage, return on invested capital gets magnified (so does risk). As a simplified example, if you buy a prpoerty with 20% down, break even on rent and payments, and price increases 20% in a year and you sell (net of sales fees, of course), you have just doubled your money in a year. Of course the opposite is always a possibility.

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  • James Vermillion
    Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
    14y

    You can always take the money you would like to double to a casino and head straight for the roulette table. The only investment analysis you would need to do is decide on red or black.
    Seriously though, there are many ways to double your money in both real estate and other businesses, and Don asks an important question...over what period of time?

    Another good question is how much money...I can think of a lot of ways to double $1 in a short period of time but if you are talking about $1,00,0000 things get a little more complicated. If it were that easy to just continuously double your money in a short period of time I would already be filthy rich!

    1Reply
  • Michael Lauther
    Investor · Hampton Bays, NY · Member since 2009 · 907 posts · 258 votes
    14y

    You can double your money as a buy and hold Landlord if you buy right and mange smart in many C areas in cities across the rust belt.
    Your net rental income after taxes insurance vacancy and maintenance could net you 20% if you manage the property yourself.
    You would have to meet the 2% rule and get lucky on the 50% guideline to meet your objective but it is do-able and without any appreciation

    The rub is that in order to sustain that level of growth on a compounding basis you need to re invest the income at the same rate and also you need reserves.

    While it works out on Paper the real world tends to confound our best plans.

    2Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    14y

    I think the OP is saying he puts 5K in a deal and gets out with his original 5K and makes 5k. Small amounts are easily done like taht.

    There are lots of ways to do deals to double small investments and even no investment, such as working private foreclosures, using your credit and go one the note, modify it and raise the price to your partner.....so long as there was enough equity to share.

    There are lots of ways to use your cash, credit and knowledge to facilitate a deal and profit.

    0Reply
  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y

    Developer/builders can double their money in a year with the right set of circumstances. For example, find a bank that will finance spec building. You put in $50k, they put in $150k. Buy a lot and build for $200k. Sell for $280k. Pay back bank, cost of sales and other soft costs, and net $50k on your $50k investment. It's not exactly passive or without risk.

    4Reply
  • Michael Lauther
    Investor · Hampton Bays, NY · Member since 2009 · 907 posts · 258 votes
    14y

    Bill , you are right the OP was looking for a doubling of his money in a some what shorter time span.

    I guess when the only tool you are comfortable using is a hammer you tend to see every problem as a nail.

    To double your money or achieve anywhere near the return you speak of will take some form of work on your part. whether it is flipping property, buying and selling stock or developing property part of the return is attributed to your skill and effort.

    0Reply
  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y

    Doubling your money every 1-2 years isn't sustainable over the long term. It doesn't need to be, though. Define your end goal and the play around with the rule of 72 to figure out a more moderate annual return that will get you to where you want to be.

    Also, if flipping is working so well, why change what you are doing? Bored? Not challenged? Improve your processes to increase profits and/or scale up.

    2Reply
  • Greg P.
    OP
    Los Angeles, CA · Member since 2009 · 717 posts · 50 votes
    14y

    Sorry, I should have clarified. Lets say you have 500k and want to double it to 1mil in one year. How would you do it?

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  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y
    Originally posted by Greg P.:
    Sorry, I should have clarified. Lets say you have 500k and want to double it to 1mil in one year. How would you do it?

    I'd do some leveraged spec home building in Austin.

    2Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    14y

    Greg P., you need to clarify further. Do you wish to use leverage in the persuit of doubling your money, and what amount of risk do you deem acceptable?

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  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    14y
    Originally posted by Greg P.:
    Sorry, I should have clarified. Lets say you have 500k and want to double it to 1mil in one year. How would you do it?

    How much risk are you willing to take?

    Unless the answer is "a good bit," you probably can't. With some risk it's possible, but you need to decide/define your risk threshold first.

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  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    14y
    Originally posted by Greg P.:
    Sorry, I should have clarified. Lets say you have 500k and want to double it to 1mil in one year. How would you do it?

    You should have loaned the money to a Facebook employee three weeks ago!

    If you find enough brokers across the county you might do it with transactional funding if they can keep the money moving.

    If you get busy, you could buy notes and then refinance the borrowers at near PAR value.

    There are some other ways if you are "politically" connected, changing zoning, use regulations and obtaining bond financing for projects, but that usually takes longer too.

    0Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    14y

    Bill, are you trying to get ABOVE 100 influence?!!! LOL

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  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y

    I think Bill's just under the influence ...

    4Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    14y

    WHAT? You mean there is a limit? When did that happen? Geeez, pass the ice please!

    0Reply
  • Greg P.
    OP
    Los Angeles, CA · Member since 2009 · 717 posts · 50 votes
    14y

    Don, yes leverage or just buying cash. Either way works, and I wouldn't say taking huge risk but taking calculated risks with small or big steps.

    1Reply
  • Loc R.
    Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
    14y

    I would say if you're in a cash-heavy position, there are plenty of ways to increase your money without flipping houses.

    Buy X at a discount from a distressed seller. X could be a business, a house, a car, something that has value. The key is that you are the one with the cash and therefore, in a position of power.

    I forgot who said it, but he said "if you're not embarrassed by your offer, then you've offered too much." I don't follow it literally, but that is the mindset to have.

    3Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    14y

    I often buy at discount because I pay cash. In the last 4 months in Phoenix area the discount for cash seems to have evaporated, and all of a sudden everyone and their brother has cash and is bidding up real property. In all environments you may be able to obtain a discount for cash, but the big discounts seem to only be available in some environments.

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  • Jake Kucheck
    Residential Real Estate Agent · Costa Mesa, CA · Member since 2008 · 1k+ posts · 380 votes
    14y

    Do you know how to trade E-Minis?

    The only person that I know that verifiably has doubled his money in the time period you specify (actually, about 1/4 of the time period you specify) did so trading these. That's about where my knowledge on the topic runs out.

    0Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    14y
    Originally posted by Loc R.:
    I would say if you're in a cash-heavy position, there are plenty of ways to increase your money without flipping houses.

    Buy X at a discount from a distressed seller. X could be a business, a house, a car, something that has value. The key is that you are the one with the cash and therefore, in a position of power.

    I forgot who said it, but he said "if you're not embarrassed by your offer, then you've offered too much." I don't follow it literally, but that is the mindset to have.

    I think Loc says it all here. I've never doubled $500K, but it's got to be doable. Surely there's a distressed asset that's worth $1M that needs a $500K solution today. I worked for some REI partners in the late 1990s. They didn't build or rehab or develop or hold anything very long. They were problem solvers. There were several projects in a couple of very busy years. One was buying an estate for $9M and reselling for $18M six months later. The sellers needed a 9M solution and they had it.

    3Reply
  • Marc Faulkner
    Investor · Kalamazoo, MI · Member since 2009 · 1k+ posts · 495 votes
    14y
    Originally posted by Loc R.:

    I forgot who said it, but he said "if you're not embarrassed by your offer, then you've offered too much." I don't follow it literally, but that is the mindset to have.

    Well said Loc R.

    0Reply
  • Greg P.
    OP
    Los Angeles, CA · Member since 2009 · 717 posts · 50 votes
    14y

    Loc, you're a low baller, jk :)

    0Reply
  • Marc Faulkner
    Investor · Kalamazoo, MI · Member since 2009 · 1k+ posts · 495 votes
    14y
    Originally posted by Greg P.:
    Hello, I've been fortunate enough to be doubling my money in the past couple of years by flipping (wholesaling/retailing), but is there any other way in real estate you could do this? Also, how about stocks or something other than real estate? Much appreciated for the advice.

    Would you be so kind as to give us an example of a typical transaction that you "have been fortunate enough to be doubling" your money on "by flipping, wholesaling/retailing in the past couple of years please?

    1Reply
  • Account Closed
    Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    14y
    Originally posted by Greg P.:
    Sorry, I should have clarified. Lets say you have 500k and want to double it to 1mil in one year. How would you do it?

    Doubling 500K in one year seems like a very risky proposition. There are a number of ways of doubling your money in a year or less. Like J Scott said Vegas is one way. Doubling 500K in flips seems risky because you might end up settling on deals that are marginal simply because you have trouble finding enough better deals. Also if you could find the volume of deals needed you may end up paying more in payroll as you are ramping up your work force and dealing with the associated headaches.

    You certainly know your risk tolerance better than anyone else.

    0Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    14y

    It seems that lots of people here doubt the possibilities for doubling your money in a year. I know that scaling up from doubling your money on $50K to doubling it on $500K has more risks, but it's done all the time isn't it? I once bought a non performing note with a face value of $60K for $5K. I foreclosed, dropping the min bid to $30K and it sold for $35K. I'm no note genius, it was a truly distressed asset and I was the only one working the lead. People with more funds and higher risk tolerance do this stuff all day long with exponentially greater investments and returns. Is it because I'm in So Cal that I see this?

    Doesn't everyone here know at least one person who makes real money problem solving with money?

    2Reply
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