Two investors break down house flipping math: a $200,000 property with $130,000 in renovations sold for $430,000, netting over $100,000 profit. Hard-money loans let you spread capital across multiple deals instead of locking it into one, multiplying your control and potential returns.
Here's the truth about flipping houses that nobody wants to tell you. I just bought a deal for $200,000 cash.
We put $130,000 into the property renovating it and sold it for $430,000 plus. I made over $100,000, but it took me 6 months to recoup that $330,000 cash. Another way to do it is to go out and get hard money, but you're going to be paying points and interest on that loan.
You can go out there, you can spend your money, you can tie it up into real estate and hope that the market is favorable for you. But what we tell you to do is always keep cashing in, use other people's money, and hard money is the absolute best way to go. Yes, you're going to pay points and fees, but the leverage and the ability to be in control is more important than those fees and those points. Because I can take $500,000 and I can put it into one property and have that tied up, and yes, I can make all the profit. Oh, I can take that $500,000 and now put it into 5 properties. So like us, share, comment, talk to me. Let's do it.
