Did anyone here make 100k on their first flip?

Real Estate Agent · Ft. Worth, TX · Member since 2016 · 10 posts · 5 votes

Ok guys I’m working on a longer forum post to really cover this deal in-depth, but just wanted to get the conversation started a little bit.

I am really interested to see what some of yall’s numbers look like at the conclusion of your first true-blue flip from start to finish.

So did anyone else here make 100k on their first flip? If not, how close (or not so close) did you get? I’m really looking forward to hearing others experiences and sharing my own very soon!

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Jason Dillard

Real Estate Broker · Greer, SC · Member since 2013 · 548 posts · 271 votes

@Rhett Roden We made at least 1k on over 100 flips. Does that count? My first one made about 15k. Us boys here in SC got a median home price about 160k. We underprivileged. Buy we have sweet tea.

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Adam Drummond
Investor · Greenville, SC · Member since 2013 · 252 posts · 92 votes
8y
@Rhett Roden
my first flip by myself i cleared about 27k. of course, i bought the house for about 43k, and only put about 25k or so into it.
Adam
3 Reply
Account Closed
Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
8y
Originally posted by @Rhett Roden:

Ok guys I’m working on a longer forum post to really cover this deal in-depth, but just wanted to get the conversation started a little bit.
I am really interested to see what some of yall’s numbers look like at the conclusion of your first true-blue flip from start to finish.
So did anyone else here make 100k on their first flip? If not, how close (or not so close) did you get? I’m really looking forward to hearing others experiences and sharing my own very soon!
It took me three properties, to get to my first $100k flip profit. 1st was about $30K, 2nd was like $50k or something like that, third was over $100k. It was back in the 90's. It was an expensive market which accounts for some of the expenses and profits. The key is to buy "off market" and in not having to pay 6% realtor fees when selling. Since I use "Subject To" I didn't have loan origination fees (points) either. What I learned is that Uncle Sam loves you to be successful and have sort term gains like Fix & Flip . They like it so much they send you lots of letters asking for lots of money. ;-) Fix & Flip - highest risk, highest taxed, requires most money & requires most time with the least reward. IMHO.
I only "cash flow" (not Buy & Hold, but "cash flow" yes, there is a difference) properties these days. It takes a lot less money, there is a lot more money in it and taxes are a lot lower on cash flow & the projects happen a lot faster.
3 Reply
Tom SpaethPro Member
Investor · Denver , CO · Member since 2011 · 129 posts · 59 votes
8y
My first non-rental property was a new build. We cleared $300k on it. Primo land that everyone though was unbuildable. We fit 3 townhouses on it. Wish I had one of those every year.
6 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
I have seen lots and lots of huds over the years in my HML days to flippers there are not a lot of 100k profits..
until you get into big dollar deals. lots of 20 t0 30k deals..
maybe a better question / or another way to ask the question is how much % did you net on a flip
IE if your flip sold gross for 400k did you net 15% or 60k.. ( which in my world Is a home run)
I have hit 100k profits but anyone getting in this business thinking that's the norm.. I have never seen it.
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Dawn Curry
South Jersey · Member since 2016 · 78 posts · 35 votes
8y
@Jay Hinrichs our first (and only) flip so far we made 60k gross
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Jason Dillard
Real Estate Broker · Greer, SC · Member since 2013 · 548 posts · 271 votes
8y
@Rhett Roden We made at least 1k on over 100 flips. Does that count? My first one made about 15k. Us boys here in SC got a median home price about 160k. We underprivileged. Buy we have sweet tea.
14 Reply
Max T.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
8y
Originally posted by @Jason Dillard:
@Rhett Roden We made at least 1k on over 100 flips. Does that count? My first one made about 15k. Us boys here in SC got a median home price about 160k. We underprivileged. Buy we have sweet tea.
LOL I made 100k on my first flip (divided by 10) as well.
2 Reply
Kevin Dong
Flipper · Fort Myers, FL · Member since 2017 · 182 posts · 98 votes
8y
Well. You should ask how long it takes to get 100k flips. And how much do u invest to get that 100k. If it takes 300k and 6 month to net 100k. I would rather do four little house flips. 50-60K each house. Netting 25k each house. In and out within 3 month.
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Kevin Dong
Flipper · Fort Myers, FL · Member since 2017 · 182 posts · 98 votes
8y
And yup. My first flips looks like this. 107 purchase. Rehab 7k. Sold it for $160. Net around 32k. In and out within 2 month
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Kevin Dong:

And yup. My first flips looks like this. 107 purchase. Rehab 7k. Sold it for $160. Net around 32k. In and out within 2 month
this is more of a normal pattern... put % returns in your market are far higher than west coast market .
you can make 100 200 300k but those are 1 to 3 m illioin dollar flips so risk Is substantially higher.
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Kevin Dong
Flipper · Fort Myers, FL · Member since 2017 · 182 posts · 98 votes
8y
@Jay Hinrichs exactly. People always forget about the time factor and total return for the capital you invest in. I would rather do these little flips all day verse these 100k home fun which is usually takes longer to complete. Unless you get a sick deal.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Kevin Dong:

@Jay Hinrichs exactly. People always forget about the time factor and total return for the capital you invest in. I would rather do these little flips all day verse these 100k home fun which is usually takes longer to complete. Unless you get a sick deal.
1000% agree.. I was at a conference in San Diego last month and one of the guys I was speaking with was talking about one of his colleagues and they flip about 70 homes a year in the LA basin average exit price right at 700k average profit between 7 to 15k.. that's how competitive it is.. that's a lot of work to make 1 million or so net and a ton of risk.. Make more money just lending the money.
in the PDX market were I am competition is so keen that same thing 50k on a 600k deal is pretty normal..
on new construction we try to hit 15% of gross so 400k is about 60k which we can just about hit.. but we will do 30 in a year.. so while not Great % it does add up and since we have bank financing at 90% of cost.. or so.. we are still almost 3X cash on CASH in 9 months..
In Charleston SC were we build and do smaller volume 10 or so a year we may hit 20% of gross or even higher but hard to get the volume
We did just close one at 650k and made 160k on that new build.. But I paid cash for the lot so 160k lot purchase 160k net profit less than a year.. so if you can get velocity and you have the crews to do velocity ( which can be tough) your 30k on 100k I would take every day of the week plus your escape plan is solid you can always rent that stuff and cash flow if needed..
now keep in mind what your paying 100k for now I was buying in 09 2010 in Lehigh for 20 to 30k a foreclosure sales .. I could not sustain as capital was so hard to raise then.. but it was fun while it lasted.. I never set foot there. but I had been there in the early 80s for a convention on antiquated plats and how cities were going to deal with hundreds of thousands of lots that were platted and never built on.. and Lehigh is the poster child in the US for such subdivisions.
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Jeffrey Stasz
Investor · Charleston , SC · Member since 2014 · 160 posts · 142 votes
8y
I have never made less then a 100k on a flip. Granted my stuff is big and time consuming so it is usually closer to 60-70k/yr when we are all done but we still do pretty well.
If I am going to make 25-50k on a project it's going to be as the GC. Low risk, limited capital investment and provides cash flow for larger development projects.
My market (Charleston SC) is pretty good right now and a lot of flippers are killing each other in the 260K and below market while a lot of developers are killing each other in the 10-15mm market. Obviously a big gap but we are seeing solid success in the 550k-1.5mm market. It's an expensive enough product that the capital outlay acts as a barrier to entry while the total cash return is still too small for the larger outfits. But it is hard to find inventory.
I know @Jay Hinrichs is about to do a new spec build a little bit above this price point and I suspect he is going to be pleasantly surprised with the outcome.
I am firm believer in the simplicity of the business. Either you're lending money, enabling transactions (sales/brokerage) or creating new product (construction/development). If you're not operating in one of these three verticals then eventually you'll get squeezed out of the market as margins compress and markets become more competitive.
I meet with a lot of aspiring flippers and while it's always flattering to have people seeking your advice, I worry their is a lot of magical thinking in the current market. 15-25K on a flip in my view is simply not enough margin to compensate for the risk. Construction is an expensive business and small misses can add up very very fast. In addition, consumers increasingly want ultra high-end finishes while paying big box prices. Even with the limited inventory the folks at the median seem happy to sit out of the market and wait in the belief that prices will come back down (I don't think that is going to happen) or they go out and buy a brand new track home.
So, my strategy is to build higher quality product and target a higher segment of the market. As a result of this strategy, I have set a minimum cash return of 100K and a minimum ROI of 20% (With 50% being more of the norm). My volume is much lower then most but I am okay with that. I would rather focus on getting two projects a year right and making a 1mm then getting 50 projects a year almost right and making less.
My two cents.
2 Reply
Andrew Neal
Real Estate Professional · Brentwood CA / Dallas, TX · Member since 2016 · 185 posts · 146 votes
8y
If you count a long term ( 2 years) live in flip then yes, close. Netted 91K after all fees etc.
2 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
@Jeffrey Stasz I can just hope and pray that your correct.. :) it was a big leap for us to do a 2 mil spec in Charleston but given the location .. worse case I keep it … and have to move there.. LOL..
Although you know what they say location location location.. it will be the only new construction on the market South of Broad.. so I just need one wealthy family that's all just one !!!
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Shane McGraw
Real Estate Investor · Poulsbo, WA · Member since 2013 · 5 posts · 2 votes
8y
@Rhett Roden I got lucky and made 97k Great way to become a flipper- now I’m 11 deep or so and have not been able to replicate it yet.. gotten close a couple times though
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Matthew Fassett
Rental Property Investor · Lehi, UT (Lehi) · Member since 2018 · 91 posts · 99 votes
8y
First deal we bought for 83,000 Put 12,000 into cosmetic updates Sold for 123,600 Made 23,600. In my book a win in and out in 3 months.
0 Reply
Cody L.
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
8y
My first flips were in the $20-$30k/range. I've "flipped" multiffamily for well into 7 digits.
If you're going to buy at $100k and sell at $130k, might as well buy for $1m and sell for $1.3m. Or buy for $10m and sell for $13m. Keep adding those zeros.
1 Reply
Jeffrey Stasz
Investor · Charleston , SC · Member since 2014 · 160 posts · 142 votes
8y
@Cody L. I agree with this strategy. I know raising capital is hard, but in my exeperience the capital raise is often the easiest part. Finding and executing on the deal and really adding value is much harder.
It's also the all the same amount of work so might as well make more.
@Jay Hinrichs the WFP title report has consistently signaled the 850K+ market to be the strongest. Fewest days on market etc. If you were building a McMansion in MT. P then I'd be concerned but the downtown market is solid. Inventory is mediocre and the demand is high. Most importantly the folks that are moving downtown are overwhelmingly coming from expensive markets so the 2mm does not seem so high. When are you guys looking to wrap that thing up?
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Jeffrey Stasz:

@Cody L. I agree with this strategy. I know raising capital is hard, but in my exeperience the capital raise is often the easiest part. Finding and executing on the deal and really adding value is much harder.
It's also the all the same amount of work so might as well make more.
@Jay Hinrichs the WFP title report has consistently signaled the 850K+ market to be the strongest. Fewest days on market etc. If you were building a McMansion in MT. P then I'd be concerned but the downtown market is solid. Inventory is mediocre and the demand is high. Most importantly the folks that are moving downtown are overwhelmingly coming from expensive markets so the 2mm does not seem so high. When are you guys looking to wrap that thing up?
closing stretch on market later this month ….
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Pratik P.
Flipper/Rehabber · Sacramento, CA · Member since 2016 · 807 posts · 815 votes
8y
I don't know if you'd consider this a wholesale or flip, but I bought a property and am immediately selling it to another investor for a 6figure profit. Definitely not common. But that's pre-tax, Uncle Same and CA will want a huge chunk of it :[
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Ryan Mullin
Real Estate Broker · Indianapolis, IN · Member since 2009 · 575 posts · 496 votes
8y
My first flip I made like 4k LOL. Of course I bought the house for 8k at auction (this was 2008) did very minor work and sold it for roughly 25k... annualized ROI was off the charts... and to this days still one of my favorites. but yeah 4k. :)
0 Reply
Brett Goldsmith
Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
8y
First deal no, but quite a few deals since I have been partnered in or seen others make 100K+ profit, 15-25-30% returns. I believe this is due to me being in the LA market as it's been a bit crazy the last few years. I personally tend to only want to purchase rehabs with a minimum of 15% ROI when ran off conservative numbers.
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Jennifer PetrilloPro Member
Investor · Asbury, NJ · Member since 2015 · 226 posts · 205 votes
8y
Buy distressed for better profit margins. Our flips make 40-80K but more importantly ROIs 50-100%. We flip 3/2 SFRs with ARVs in high 200s/low 300s.
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Joshua Top
Flipper/Rehabber · Sedro Woolley, WA · Member since 2015 · 31 posts · 29 votes
8y
We started small; bought a bank owned home for $66k back in 2012. After all remodel/carry/selling costs, we cleared $32k. For us it was a home run. To make over $100,000 on your first flip would be rare, unless you are investing $500,000+ in the deal.
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