A home flip is when an investor buys a house, renovates it, and then quickly sells it for a profit.
Fix-and-flip is simply another word for a home flip. But it is often used to refer to any loans that home flippers take. Fix-and-flip loans are also called hard money loans or private loans.
The average home flip takes about 180 days from purchase to sale.
Roughly 200-250K homes are flipped each year. They typically represent 5-10% of all homes sold.
The total sales value of annual home flips is $500-650 billion. The number can vary depending on the strength of the fix-and-flip market in a given year.
The average home flip is purchased for around $155,000 and sold for close to $215,000.
The average home flip generates around $60,000 in profit and close to a 40% return on investment. But this number excludes the cost of renovations, which can be anywhere from 20-35% of the after-repair value of the home.
Fix-and-flip investors typically invest 20-35% of the after-repair value of a flip to renovations. This would be $43-75K on a typical home flip.