All Forum Posts by: Phil Long

@Aaron McGinnis - I worded that poorly.  My three year picture includes approximately 5 employees to support my revenue goal.

Thanks @J Scott.  To give you a snapshot, My business partner are in our 2nd year together, though this is my first year being full time (2/26/21 was last day at W-2 job).

To date, we have completed 4 sfh properties (purchased, rehabbed, and re-sold).  Currently have 1 closing (re-sell side) in August, 2 currently under rehab, and 5 more under agreement.

I'm currently the only employee.  We will be hiring our first employee (admin/coordinator) by the end of Q3.  Goal of 5 employees by end of year 3.

Thanks again for your response.

Is there anyone running a successful flipping business that would be willing to share their P&L statement or can provide info on what a healthy COGS vs Expenses ratio looks like?  I'm searching for something to compare my own flipping business to.

Thanks @Eric M.......I appreciate everyone's insight and time they took in responding.

You are correct @Will Barnard...no wholesaling...simply trying to determine a good economic business model for flipping company.  If I were to If rehab & flip and Gross 1M in Total income from flips; (meaning 50 flips at $20,000.00 in income per flip)..... You won't have much overhead because the subcontractor costs are a cost of sale BEFORE the $20,000.00 in profit per property. So, if the $20,000.00 profit per property is after cost of subcontractor fees (meaning no overhead there); and it's after transactional costs; than you'd only have $100,000.00 in all additional costs (such as marketing materials, perhaps some overhead for a few people etc...)....Is that correct?

I guess the follow up question I have is: To be clear, if you're wholesaling and grossing $1M in revenue in 1 year (wholesaling xyz# of homes), you'd budget $500,000.00 on marketing and lead generation costs? 

Thank you @Greg Dickerson, @J Scott, and @John Corey for your responses. 

Can anyone share their Economic Model for a flipping business?  To clarify....if you made $1mil in revenue, and $400K in profit for the year, the 60% in expenses would be broken down by what?  I'm guessing it would look something like this: 30% cost of sale, 15% employee wages, 10% marketing, 5% misc (just as an example).  Any feedback is greatly appreciated.  Phil

Hi Jimmy...please send me a message with your cell and email and I will send you all the info with pics and financial report. 

Hi Jorie, are you in PA?

View report

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