According to RealtyTrac “Real estate investors made an average gross profit of $54,927 on single-family home flips in the third quarter, up 12% compared to an average gross return of $48,893 last year.”
Across the country, 32,993 single family homes were flipped in the third quarter of this year. That is impressive and certainly shows that investors are out in force across the country. But when you look a little closer – you realize that this house flipping business is starting to cool off.
The reason the average gross profit went up is because the number of homes flipped at the high end of the market took off, and 75% of the high end business was in just 5 metro areas – NYC and 4 CA markets.
For you number crunchers, the full article is posted here at www.housingwire.com/articles/27479-home-flippers-back-away-as-real-estate-turnover-activity-declines
Let’s not get discouraged. Not one bit. It’s great to set a goal post, and making over 50k flipping a house can be done right here in the DC area. And you certainly don’t have to flip a high end home to do it.
Despite the struggle and dysfunction we have seen over the last few weeks from our elected leaders, DC is still a highly desirable place to live. Our metro area is drawing people from all over the country, and to an extent from all over the world. It’s not sunny southern California, but DC offers something that California doesn’t have….
Monday night we are going to talking about what draws people to DC and how you can make a six figure income flipping homes in the DC area. Using the numbers above, an average investor can flip just two homes a year, and accomplish that 6 figure goal.
Do you think you could find, fix and sell two houses next year? I know you could! And there are a few things that you could do that would make the process a little easier and faster and reduce the risk of flipping properties in DC.
Let’s talk about those helpful items on Monday night. I hope I see you there.
“Flipping Houses in 2014 For A Six Figure Income”
Guest Speakers @ WREIA Oct. 21st – Register Here
Lastly, I hope you read the entire article we linked to above. In case you don’t get to it let me point out the last paragraph in the article. It may remind you of our rental program and our quest to purchase 100 homes – not to flip quickly, but to rent.
“As rent and home prices escalate and the number of available REOs continue to decline there are fewer people who are buying homes to flip. House flippers are kind of a misnomer as they’ve turned into what I like to call ‘holders’,” said Sheldon Detrick, CEO of Prudential Detrick/Alliance Realty. “Being a house flipper meant buy it, paint it, sell it. Now it’s turned into buy it, paint it, rent it, and hold it.”
Don’t get discouraged if your offers are rejected on a home you are trying to flip. You have a lead there, and you may be able to generate some cash from us using what one of our wholesalers called his “dead leads list”.
If you have a home that, because of the numbers, may not be a great home for you to flip but may make a great rental, let us know about it. Remember, you don’t have to make 50k all at once. The margins are lower all the way around on our rentals, but when we buy a few of your rental leads it will help you pay some bills.
Be creative and focus on 2014 being a great year for your business.
Join us at WREIA on Monday night, and let me know if there is anything I can do to help you.
Washington REIA Network, President
Profitable Property, Founder
P.S. The answer is YES, we are still doing partner deals with our students and WREIA members. You may need some help with financing or need a valuable construction partner with years of experience. Or do you need us to help speed up the process for you, and help drive your business to the next level. We are here to help. Just send us a few quick details at http://dchardmoneylender.com/quick-property-submit/ and we will get back to you ASAP.