Is Flipping Houses Profitable? House Flipper Answer

We’ve all heard about people flipping houses but is flipping houses actually profitable?

As a house flipper myself I thought I would answer this quest for those that might be thinking about getting into house flipping.

Yes, in general, flipping houses is profitable. But it’s important to remember that house flipping is a form of investing which means there are no guarantees. As it’s possible to make money or lose money while flipping houses.

Can Flipping Houses Make You Rich?

Another question directly related to is flipping houses profitable is whether or not flipping houses can make you rich?

While the term rich is a very subjective term the general answer to whether flipping houses can make you rich is yes, as flipping houses can and has made many people rich over the years.

Remember though just because flipping houses can make you rich doesn’t mean it’s easy or that everyone is going to get rich from flipping houses.

Speaking as a house flipper myself who has flipped 11 homes over the last 4 years flipping houses has provided a nice living for me but in no way has it made me rich.

In order to become rich from flipping houses, you are going to have to flip houses in mass and will more than likely have to flip 100’s of homes in order to become rich from flipping houses.

So if your thinking that flipping houses will somehow provide you a quick and easy way to get rich think again.

If however, you have the dedication and skills needed to become a successful house flipper there is a tool that you can use that will allow you to flip 100’s of homes on your journey to becoming rich flipping houses.

What is this magical tool that will allow you to flip 100’s of homes you ask? The answer is that you must turn house flipping into a business.

Flipping Houses as a Business

In order to flip enough houses to become rich, you are going to have to build a business around flipping houses. Because there is no way to become rich flipping houses by doing just one or two flips.

While there are many factors that must be considered when starting a house flipping business there are six main categories to focus on when building a house flipping business.

The six key elements of a house flipping business include having a plan, obtaining capital, finding the property, performing property rehabs, sales and marketing, and accounting.

House Flipping Business Plan

While you should always have a plan even if you’re just flipping one house if you plan to successfully run a house flipping business having a business plan is absolutely critical.

Without a house flipping business plan, it’s impossible to have any level of organization or direction in your business which can often lead to mistakes and perhaps even complete failure.

Finding and Acquiring Adequate Capital

Finding and acquiring enough capital to flip an occasional house is much easier compared to finding and acquiring enough capital for a house flipping business because you will need much more capital to run a house flipping business.

Remember capital is the lifeblood of your house flipping business and in order to flip 100’s of properties you are going to need timely and reliable access to capital not only for the purchase of the flip but also for the rehab as well.

Finding Property

Another important aspect of any house flipping business is the ability to find enough properties that can be purchased below market value that can be flipped.

After all, if you can’t find quality houses to flip then nothing else really matters when it comes to running a house flipping business.

Just about everyone can occasionally stumble upon a good deal on a piece of real estate.

In order to run a successful house-flipping business though, you are going to need more than just an occasional deal as you will need to find hundreds of properties to flip. And the only way to find hundreds of potential properties to flip is to actively search and seek them out.

Some great places to find and acquire potential houses to flip when running a house flipping business include auctions, the MLS, other house flippers, wholesalers, and direct mail.

Rehabbing the Property

In order to rehab property in mass, you are going to have to treat the rehab process of house-flipping as a business just as with every other aspect of the house flipping process. In order to do this, you are going to need to develop a repeatable system when it comes to the rehab process of your house flips.

Some key elements to a reliable and repeatable house flipping rehab process includes a detailed budget and plan for each rehab, reliable and cheap labor, strict timelines for project completion, and good checks and balances to keep the rehab on budget and on time.

Sales and Marketing

Once you have finished the rehab of the property and are ready to sell the flip you must have a sales and marketing plan in place for your house flipping business.

The most important element to a sales and marketing plan for your house flipping business is to advertise and provide enough market exposure to your house flips to get them sold quickly and for top dollar.

There are many different ways to accomplish this but one of the most commons ways to market your house flips in order to receive top dollar is to outsource the sales and marketing to a licensed real estate agent that will use the MLS and other tools to provide maximum market exposure for your house flip.

Accounting

The last key element to a successful house-flipping business is accurate and professional accounting and bookkeeping.

While accounting and booking might not be the most exciting aspect of a house flipping business it is imperative to have a good handle on the numbers at all times to make sure that the business is staying in the black and out of the red when running your house flipping business.