Page 5 - From Ghetto to Gucci: The Basic Principles of Flipping Houses

Now, let’s take a look at the time that you put down. How many hours did you think it would take
to flip a house? In my experience, if you’re flipping a house, you should expect at an absolute
minimum to spend at least 60 hours in the flip process, with the potential to spend significantly
more time depending on the scale of the job. Of these 60 hours, you will likely spend at least 5
hours looking for a suitable house, 50 hours at the house during the remodel, and 5 hours
spending time related to selling the house. Truth be told, 100 hours is a much more realistic
number, with some flips taking up as much as 300 hours.

Now step back to look at what you’d like to accomplish. If you said that you’d like to make
$50,000 in a year, and you think you’ll be able to make $10,000 on each flip, you’ll need to go
through five flips in a year. You need to be able to budget 300-1500 hours to accomplish your
goal. Are you able to do that? If you’re looking at your goals, and you’re thinking that they may
be unrealistic, now is a great time to go back and edit them.

Alright, with your realistic goals, you’ll be all set to accomplish great things in the flipping world!
It’s very important coming in that you realize the time and effort that you’ll need to expend to
accomplish a flip. One of the biggest causes of failure to would-be flippers is that they
underestimate the time and effort they’ll need to invest in order to make a flip successful. With
your realistic goal, you now should be able to avoid that obstacle, and you’re ready to move
onto the next topic, understanding the market.

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