If you are the entrepreneurial sort, you have probably heard of the idea of flipping homes to make money. At a basic level, the idea is very simple – you purchase a home that is in substandard condition, fix it up, and then turn around and sell it (hopefully) for a profit. As far as business models go, this one is extremely straightforward.
The concept is a simple one, but the important question is this – how much money can you make flipping homes? Is there really enough profit available to make it worth the time and effort? The answers to those questions will depend on a long list of variables.
Yes – You Can Make Money
To get this out of the way right from the start – yes, you can make meaningful money by flipping homes. Does that mean everyone who attempts to flip a home comes away with a profit? Of course not. Just like any other kind of business, some will succeed, and some will fail. That’s how capitalism works.
Don’t Plan Your Retirement Party
While there is money available here to be made, anyone expecting to get rich quick should take a step back and think more realistically. It takes time – and a lot of effort – to build a successful business. If you are afraid to work hard or are afraid to take on a bit of risk, this likely isn’t the right path for you.
Earnings are Too Variable to Predict
Unfortunately, it is impossible to directly answer the question posed in the title of this article. If you flip just one house a year as a part-time gig while working a regular job, you will be limited in your earning potential. On the other hand, if you take this on as a full-time business and build up a team to work with you, there is significant potential for growth. Again, this is like any other business, where you can’t really know how much you’ll make until you get started and find out for yourself.
Getting Started
Funding is the big hurdle that most people need to clear when they are considering taking on a home flip project. Fix and flip loans are now available to make it easier to get the required funding for the job. If you decide to take on this venture and invest in your first home flip, we wish you luck!