What are you BIG DOGS making a year flipping houses??? Just curious…
Thanks REI people…
I was wondering the same thing. Give us some insight, better yet, some dreams to look forward on pursuing 
Y’all,
I’m not one of the people you’re asking, as I prefer to buy & hold, but I do occasionally sell a house for one reason or another. I took out about 73k in equity last year and 40k so far this year. I intend to buy more this year, but do not intend to sell anything more, so I’ll
probably have an overall cash loss in realty this year.
If I flipped houses instead of holding them, I believe
I would have netted 70-100k each of the last 5 years.
If you buy carefully and hold, you can do better longterm than by flipping, in my opinion.
If you need income from realty immediately, I believe wholesaling & flipping are great ways to get the $ quickly. How much you earn will depend on how carefully you buy and, I believe, how well you treat people you deal with.
Good luck,
Ray
Thanks for the reply. Its great to know what to expect. I was blind as to how much you could profit annually. Thanks for the insight.
For acaual bird dogs I think it would be greatly less then for a wholesaler. I had bird dog offers of $250 per property closed on, sounded pretty weak so I passed it up, got a full time job, and should be diving into wholesaling within the next 6 months, hopefully sooner. (been researching an learning for about 3mo.)
Mark,
You are correct. Birddogging would have to earn less than wholsaling. The wholesaler is taking a risk, following the lead to a closed contract. However, I believe that whoever offered you $250 per lead was either aiming at a market or profit lower than I do, or was cutting a corner. I pay 500 for a lead or 1k for an agreement to sell, with a bonus for any property that (in my opinion) is an extremely good deal.
Good luck,
Ray
Ray,
When you say a “lead”, what all do you require the birddog to bring you? Is it just a person’s name and address or is it more invovled? If so, please list the requirements that must be meet before paying out on a lead. I would like to start hiring some birdogs but I just don’t know what they should be bringing me back before I pay them.
A list of what all your birdogs are designated to bring in order to qualify for the pay would be very helpful.
By “BIG DOGS” I’m assuming you mean full time investors, correct?
The question asked, which was basically, “how much do you make in REI?” comes up all the time in some form or another.
The problem is that it is an irrelevant question. Anytime you are an independent business, your income is only limited by your knowledge of the market, desire to succeed, and your ability to define and carry out your goals.
There are people in REI who make $10-20K per year and are successful in the business. Why? Because their goal was to make $10-20K per year to supplement their current income. They achieved their goal.
Several, make more, sometimes much more than that. Again, it really is only limited by what you want to accomplish.
I recently spoke with a friend of mine, Jon Morrow, who invests in the Charlotte, NC area. He has made over $1 million in profit so far this year. He’s dedicated to the business. Myself, I want to make enough to pay the bills and buy the toys and have time to spend with the family and to play golf (or try to anyway).
It’s up to you.
Raj
So, RAJ what advice would you give a new investor starting in the real-estate market that doesnt have much to invest.
Would it be reasible for a new-investor to dab in Bank Reo’s, Rehabs, and pre-foreclosure.
tuffat,
What advice would I give? In a word, LEARN.
Before you “dabble” in anything, you need to have some idea of what you are doing. BTW, I don’t recommend dabbling. Either commit to make this a real business, be it fulltime or parttime, or don’t bother doing it at all. Dabbling hints that you may just try to “play around” with REI, and you’ll never get anywhere doing that.
If you’ve never ran, or started, a business before, then the first thing I’d recommend is that you visit your local library and read up on what is required to start, run, and maintain a successful business. Once you’ve got that knowledge and have decided that you can and want to do that, then you can start learning more about REI specifically.
As far as what a newbie should start with in REI, that is really up to the individual. What do YOU want to accomplish in REI? What niche in REI best suits your personality/style?
I think that one of the easiest ways to get started is to find a RE agent that will work with you and find REO’s listed on the MLS. Why? Because the agent’s job is to walk you through the buying (and selling if you prefer) process. If you’ve never bought or sold a house before, then it’s a cheap education in the process.
The MLS is probably NOT going to net you the best possible deal, and it certainly isn’t going to give you a property to wholesale if you’re trying to go that route, but there are good comestic rehabs (as well as real dumps, if you so desire), that a newbie could get into and out of pretty quick. As you learn the process, you can branch out.
As stated before, the best course of action is to make a list of clearly defined goals and develop a plan to reach those goals.
Hope it helps,
Raj
I’d say about 90% of people who claim to be “in real estate” will never buy a property. Or will buy a house to live in, wait a few years, then sell it for a profit.
I don’t mind encouraging people on this board, and giving away free advice, because I know that a slim minority will actually start moving forward.
Take care,
… Christopher
well its good to know their are some that are out their encouraging others to continue forward and those that are sharks and selfish and only care for themselves. I have boughts two rehabs and made pretty well on them all. It was just to know what the average person would say to a new person.