You’re interested in flipping houses. Maybe you’ve seen it on TV, maybe your family does it – or maybe you just love the idea of making lots of money with very little effort. Or maybe you love houses. Or some combination of the above.
Whatever the reason, fix and flips ARE NOT passive income. Unfortunately, you can’t throw $150,000 at a property and it’s suddenly worth $200,000. No, you’ve got to make a budget, buy materials, hire and manage contractors, do the work yourself, etc. Fix and flips often become side hustles, part-time jobs for folks to earn extra money.
We know lots of people who DIY fix and flips. There’s nothing wrong with that – but it isn’t an investment (at least not how we consider investing) and it isn’t passive. They often do the work themselves, self-manage the project and spend many weeknights and weekend hours on the project.
To get ahead – that is, to start making more money per day, which is really to make more money per hour – you need to guard your time. In order for fix and flips to increase your hourly wage and NOT have to work 80+ hours a week (day job and now side hustle), consider flipping like a business.
Treating fix and flips like a business means hiring out the work, hopefully having a project manager, and getting LESS profit per flip. BUT now you have WAY MORE free time and leverage. Now you can leverage your time, think smart, and build a team to fix and flip multiple properties. You couldn’t do that by yourself, working at night and on the weekends. Well, now you can and now you can do, say, two projects at once.
You’ll make less per project but more in the same time period, therefore increasing your hourly income. That’s how you make fix and flips quasi-passive income. Via building a business. Otherwise it’s active income and, while still awesome, either ends up replacing your other active income source (aka day job) OR adding to it, meaning you’re working insane hours. Still a great way to get ahead, but not sustainable if you want hobbies, family, free time, you know, a life.
Build the business, the team to help you fix and flip properties. That way you can have incredible income AND an incredible life.