Realistic profit goals for flipping as an investor?

[Chris Niemeyer]

Question about realistic numbers and expectations for a real estate investor.

Although I've dabbled in real estate and I've done four flips and currently own 12 doors out of state, I've doubled down on my RE education and positioning in 2020. I'm making real estate a big focus for my income and retirement planning in 2021. (FYI, I'm a business owner, 41, 4 kids - my why - and then planning to get to a place where I sell at least one of my businesses then real estate flipping income and passive rental income exceeds our needs.)

I'm accredited investor, currently liquid with at least $150k cash access to pounce on cash deals. Then I just got approved for seven-figure hard money credit line for flips and acquisitions. That is brand new to me and I have not yet tapped.

I have two flips going on in Ohio, in an offer in Tennessee, and meeting a contractor near my zip code here in Florida to start an hour market.

I like to approach my flips where I put in the money and partner with a contractor or team where they will donate most of their labor for a piece of equity on the flip.

Buying in the $100-150k range, rehab costs 20-50% then yielding 30-50+% cash on cash.

Is it unrealistic to have a goal of $50k net profit per quarter doing a couple flips per quarter?

We've been pretty conservative for too long, so dipping my toe in the water to be a bit more aggressive moving forward. Heard some amazing return stories, but also some horror stories. Would love to hear your thoughts on above and happy to provide more detailed information as needed.

Thanks so much!

[Greg Dickerson]

Originally posted by @Chris Niemeyer:

Question about realistic numbers and expectations for a real estate investor.

Although I've dabbled in real estate and I've done four flips and currently own 12 doors out of state, I've doubled down on my RE education and positioning in 2020. I'm making real estate a big focus for my income and retirement planning in 2021. (FYI, I'm a business owner, 41, 4 kids - my why - and then planning to get to a place where I sell at least one of my businesses then real estate flipping income and passive rental income exceeds our needs.)

I'm accredited investor, currently liquid with at least $150k cash access to pounce on cash deals. Then I just got approved for seven-figure hard money credit line for flips and acquisitions. That is brand new to me and I have not yet tapped.

I have two flips going on in Ohio, in an offer in Tennessee, and meeting a contractor near my zip code here in Florida to start an hour market.

I like to approach my flips where I put in the money and partner with a contractor or team where they will donate most of their labor for a piece of equity on the flip.

Buying in the $100-150k range, rehab costs 20-50% then yielding 30-50+% cash on cash.

Is it unrealistic to have a goal of $50k net profit per quarter doing a couple flips per quarter?

We've been pretty conservative for too long, so dipping my toe in the water to be a bit more aggressive moving forward. Heard some amazing return stories, but also some horror stories. Would love to hear your thoughts on above and happy to provide more detailed information as needed.

Thanks so much!

 It all depends on you and the markets you're in. You can make $50k a quarter or $250k. It's all about the right deals and structure, mindset, systems and becoming an Entrepreneur Investor. First thing is you don't want to partner with the GC. No reason to do that and give up profits when you bring everything else to the table. You should be hiring turnkey GC's and let them do their job while you focus100% on finding deals, raising funds and getting properties sold. This is how the pros do it meaning people who earn $500k to $1 million or more flipping.