Flipping Houses Is Like A Production Line!
Selling houses one after another are what Realtors® do for a living!
Contractors are also in the business to mass produce and sell houses.
Real estate Investors buy houses, fix them up, and sell for a profit.
Flipping Houses - What to Expect...
There is a lot of construction, buying and selling, buyers and sellers, and paperwork involved!
Flipping 2 Houses Per Year can be a comfortable living, at a comfortable pace.
It Takes About:
Working with Professionals will speed up your efforts.
They're not your employees; they are independent contractors that work for a fee, with contract terms.
For instance, hiring an electrical or HVAC contractor who are experts in their trade, will get the work done in a day or two while you do what you do best.
Having a Realtor® looking for your next best deal, or selling your last Fixer-Upper, while your working on your remodel, can save you months of time, and save you money and aggravation with marketing and selling to the public.
If you don't have a full time Realtor® working for you, I can save you more time and aggravation of finding a Full Time Professional. Have a Realtor® Call You (click here) instead of going through the interview process looking for a Realtor® on your own.
You know the value of a referral – right.
They're usually from friends and businesses that are helpful to us and are interested in establishing a working relationship with us. That means a quick response and a higher standard of service. Click here and I'll have a Realtor® give you a call. There's no obligation, only that you agree to talk with them.
Note: Wholesale Real Estate...
Buying properties or taking an option instead of buying,
and selling it to a real estate rehabber or investor for a slight 3 to 5 percent mark up,
without doing any work on the property,
is the method of flipping houses in large numbers,
but you have to have several buyers lined up and waiting.
ADD VALUE... INCREASE PROFITS!
As a Rehabber, flipping houses makes more money because of the improvements, updates, and major renovations we like to do ourselves.
Labor costs are high! Licensed and insured contractors are expensive. Comparatively, materials are rather inexpensive.
As Rehabber, we do our own labor! Because that's what we like to do! Flipping houses that I do the work on, I consider $10,000 to $20,000 in profit (my pay for the labor) in addition to the profits from the increased value of the house (the difference between purchase price and sale price).
Adding Value for instance are:
Definitely more than paint and carpet to achieve higher profits! Although paint and carpet or refinishing wood floors are a given to spruce the place up. Sometimes, that may be all that's needed with a little landscaping touch ups.
Margin for Oversight
There are always hidden costs or unexpected costs!
Flipping houses as a real estate rehabber, we can absorb unexpected projects easier than those who hire all the labor out.
Sale price comes in less than expected? Our competition of other investors; hire all the work out, and have a higher cost basis? A real estate rehabber has the advantage and room for error because of the labor costs we did not pay out.
Rehabber Labor Profits
$6,800.00 profit on a $10,000.00 kitchen remodel when materials cost only $3,200.00.
$3,500.00 profit on a $5,000.00 bathroom remodel when the materials cost only $1,500.00.
$4,000.00 profit on a $6,000.00 new roof when the materials cost less than $2,000.00.
To give you a feel for some price costs with out labor:
New vinyl siding and trim is less than $1,500.00.
Standard windows cost about $75.00 to $150.00.
My cost for a new furnace and A/C is $1,500.00, but you usually need a license for HVAC.
As a matter of fact, you can buy all building materials without a license except the furnace and central air conditioning units.
Licenses and permits for installation will be required according to your local Government Building Department.
The biggest savings in labor I've profited from was by supporting bowed in basement walls with wall anchors (steel plates on the inside wall, with a steel rod extended through the wall outside, and a steel plate in the ground - bolted together) and a sump pump in the basement floor.
The estimates came in from $24,000.00 to $29,000.00. I did the whole job myself, by myself, in 2-weeks, and my material costs was $2,200.00.
I saved more than $25,000.00 on that one job and enjoyed the experience of doing it myself tremendously!
Flipping houses is merely buying and selling a house in hopes of making a profit. As a real estate rehabber, we add value to the property for a more assured profit while getting to enjoy the experience of our Skilled Trades.
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