Episode 122: The Truth About Flip Profits, Why $90K Turns Into Less Than You Think

Do you think house flipping easily makes $90K per deal? On paper, it looks that way, but most investors miss the real costs involved, and that misunderstanding leads to wrong expectations and bad deals.In this episode, Rich Lennon breaks down the real numbers behind a typical house flip and what investors actually take home after all expenses. He explains how private money lending works, who the real client is, and how profits are divided across the deal. He also walks through the full cost structure, from lending and closing costs to holding expenses, and introduces the BURR strategy as another path to long-term wealth.You’ll Learn How To:Break down a flip deal beyond surface-level profitUnderstand where the 30 percent margin actually goesEvaluate if a deal truly makes financial senseUse lending to support both flippers and long-term investorsWho This Episode Is For:Investors who think flipping guarantees high profitsBeginners trying to understand real estate deal numbersThose interested in private money lendingAnyone looking to build more realistic expectations in real estateWhy You Should Listen:Most people focus on the top-line profit and ignore the actual breakdown. This episode shows where the money really goes, helping you avoid bad assumptions and make smarter decisions in both flipping and lending.What You’ll Learn in This Episode:[00:00] Who the real client is in private money lending[01:00] Why banks avoid these types of real estate deals[03:00] The 70 percent rule and how flippers structure deals[04:00] Where the 30 percent profit starts to shrink[05:00] Breakdown of money costs, closing costs, and holding costs[07:00] Final profit range and why $90K turns into much less[08:00] How the BURR strategy creates long-term wealth[09:00] Why private lending creates a win-win for everyoneFollow Rich Lennon Here:Website: https://richlennon.com/Facebook: https://www.facebook.com/rich.lennon.121Instagram: https://www.instagram.com/richlennon92/