Flipping- can we make the math work as a community?

[Andy Wheatcroft]

Hey, i am a new investor, your community has been an awesome resource and instrumental to get me going. I have gone from zero to 5 single family units plus 3 student apartments in 9 months.

Question : i am english, living in the usa. Flipping in the uk has low transaction costs and therefore makes lots of sense, but this post (below) made me a little crazy because in the US, transaction costs make sure the entrepreneur with all the risk/work gets only half the profit....even if it goes well....whereas the realtor(s) and money guy gets half ( or more) of the flip for close to zero risk. Even worse, investors generate multiple transactions but the pricing / costs seem to be not better than the once in a lifetime house/ homebuyer.

The guy in this $880K flip, got $130K out of the deal ......but the transaction and financing costs were almost as much.

This makes me think 2 things:

1. As a community i bet we would all crowdfund a project with a quick turnaround (3-6 months) in between our deals for a reasonable return (5-10% depending the experience of the developer)

2. There has to be a way of creating a network of low margin, high volume “ sale by agreement off network by owner” real estate transactions where the fee anticipates 2 transactions in a short time i.e the buy then the sell.... that make flipping math work.....which generates more flipping project transactions.

Awesome job below, but the math made me want to puke to be honest.

Conversation starter? Or does this already exist?

https://www.facebook.com/BiggerPockets/videos/10155990277374833/