Real Estate Data Insights: Fix and Flip Investors Seeing $40K Profits Per Property

New research conducted by REsimpli reveals that fix and flip is the most profitable exit strategy for real estate investors, delivering an impressive $40,836 in average profit per deal.

The study, which analyzed data from 1,500 US real estate investors, highlights surprising trends in lead conversion rates, revenue sources, and regional performance.

Key Takeaways from the Survey

Here’s a summary of the most interesting findings and key statistics:

Why We Conducted This Study

Real estate investors need to focus on the fact that various changes, minor or major, can have lasting impacts on property prices, which can create periods of higher or lower real estate interest.

This study aims to provide crucial insights into the real estate world to understand consumer behavior and to better understand how investors generate leads and close deals.

Key Findings

Fix and flip provided $40,836 profit on average per deal, the most profitable exit type

There are various exit types utilized by real estate investors, but fix and flip was by far the most profitable exit type overall, with $40,836 in profit.

Fix and flips entail buying properties and refurbishing them to sell them off at a higher price. They are quick and easy for investors who know their community, so much so that fix and flips are the most profitable by $11,239, with wholesale being the next best option.

The list after fix and flip follows: Wholesale double closing ($29,597), Wholetail ($28, 901), Retail Listing ($24,731), Novation ($22,559), and Wholesale assignment ($17,206).

Direct mail campaigns generated $32,279,461 in revenue

$32,279,461 worth of revenue was generated by direct mail campaigns, which is $13,777,087 more than the second-highest revenue earner, cold-calling. 

This statistic can come as quite a shock because direct mail marketing, despite being a traditional form of marketing, has prevailed over digital options. 

With Direct Mail Campaigns being at the top, the rest of the top 5 follows as: Cold Calling ($18,502,374), Pay Per Lead ($11,521,157), Google Adwords/PPC ($10,625,564), and other Website Traffic (SEO, Direct) ($8,316,848).

With more people switching online for both personal and professional needs, real estate proves to be more consequential through the mail, being a more tangible form of marketing. 

Direct Mail generated 1,337 deals, proving to be the best lead source

Direct mail was the best lead source for real estate investors in 2024, netting a total of 1,337 deals. 

There were other lead sources with great success as well. Cold-calling was second and brought in 918 deals. Google Adwords/PPC brought in 523, Pay Per Lead brought in 491, and SMS Blasts brought in 350. 

This shows that despite the new-age methods, traditional means still play a massive role in real estate success.

Foreclosure Auction brought in $34,358 in average revenue

Foreclosure Auction was the best lead source for investors in 2024 in terms of average revenue, bringing in $34,358.

The MLS was the next best option bringing in $29,861 average revenue. Other website traffic (SEO, Direct) brought in $25,829, Radio Ads brought in $25,159, Referrals brought in $24,632, and Direct Mail brought in $24,143.

The state of Texas generated the highest total revenue

Texas being the second-most populated and largest area in the United States generated the most overall revenue, showcasing high real estate activity, with California (the most populated state) coming up second.

However, it is noteworthy to acknowledge that the top 5 states, Texas, California, Florida, Ohio, and North Carolina, with the most revenue generated, were on the eastern and western seaboard from the collection of REsimpli’s data. 

Massachusetts generated $34,785 in average revenue, being the highest for investors

Despite Texas reigning supreme with the most revenue generated, Massachusetts holds the top position with $34,785 in revenue per deal.

Ironically, despite generating the most revenue for real estate investors, Texas does not showcase in the top 5 states that generated the most revenue per deal.  

This highlights the fact that real estate activity might be higher in Texas due to its lower prices, whereas Massachusetts ($34,785), Maryland ($34,139), California ($33,097), Virginia ($32,396), and Wisconsin ($28,697) have more desirable properties at higher prices. 

This stands true mostly for all states mentioned here except California, which is not in the top 5 for most revenue generated but is in the top 5 for average revenue generated. 

August saw 802 deals, being the best month for investors

In 2024, investors generated 802 deals in August, making it the best month for the number of deals.

There were other great months as well, with October in second bringing in 775 deals, December bringing in 717, November with 697, and September with 672 deals. 

This result was insightful in highlighting when real estate deals started ramping up, showcasing the end of the year as a more active period. 

July generated $25,276 in average revenue, being the best month in the year

2024 saw July bring in the highest average revenue for investors, at $25,276, followed by February in a close second at $25,063.

August was also quite high up there with $23,678 in average revenue, followed by September with $23,332, and December with $23,248. Even this statistic showcases how the latter part of the year did better for investors.

Implications for the Real Estate Industry

This study helped hone in on some key factors that real estate investors need to focus on to improve their long-term plans in the field. 

Based on this data, certain locations such as California, Washington, and Wisconsin have high-value properties that tend to provide high-quality leads that positively impact the average revenue of a business.

However, if investors are primarily focused on the number of deals they complete, it is a good sense to focus on the end of the year, since they have primarily brought in the most amount of deals.

In terms of exit types, it has been evident that fix and flips have been very profitable for real estate investors, racking up $40,836 for the average profit over 2024. 

With direct mail being the most profitable marketing campaign, that has to take priority, alongside other methods, also proving the traditional methods to be more potent as cold-calling is second to it. 

Looking Ahead

The data provides an in-depth understanding of real estate on a broader scale, and how certain methods and areas prove to be more fruitful. 

The key to real estate lies in being able to track the KPIs, analyze them, and utilize them to improve the different aspects of real estate businesses further. 

The success of direct mail and cold calling campaigns in the modern world rife with technology showcases the tremendous power of reaching out to potential clients with tangible marketing materials, as opposed to impersonal digital means.

However, the numbers showcase how people tend to be more interested in real estate activity towards the end of the year as the number of deals and average revenue seems to be higher in the latter months of the year.

On top of that, it can lend a keen perspective in understanding the different demographics being targeted through various marketing methods.

On the contrary; emails and SEO practices might reach a younger audience with the desire to participate. 

Methodology

This analysis had 1,500 users whose information was exported from the REsimpli system. The information was then cataloged into different categories based on the factors.

The substantial size and spread of investors in this analysis helped deduce findings with meticulous care and confidence. 

On top of that, a minimum of 50 deals had to be completed for the inclusion of any:

• States
• Deal Source
• Lead Source
• Average Profit
• Revenue

Data Design & Collection

This analysis focused on objective information collected with meticulous care from the REsimpli system, in 2024. The information was accessible through the software, and various data was collected to provide a holistic understanding of the real estate market for investors. 

Limitations

As with any research, there are bound to be some limitations involved, such as only the top 5 states, exit types, lead source, and others being utilized for this study. This undermines the utility of other factors that may have been implemented less by the investors in general. 

However, the methodology succeeds in providing a substantial understanding alongside the findings, showcasing the current climate of the real estate market in the US, and the direction it might be heading in the future. 

Conclusion

The findings also highlight the significance of maximizing lead generation to increase the chances of a higher number of deals being closed, ultimately leading to higher revenue for the investors.