Formulas for Valuing Time in Real Estate. Part 2

In a market obsessed with margins, it’s easy to forget the one variable no investor can print more of: time. In this follow-up conversation on Selling Greenville, the host revisits flipping and holding decisions through a practical lens—how much each deal costs in hours and days—and offers a simple, repeatable way to weigh “quick money” against “more money later.” If you’ve ever wondered whether to wholesale a property now or fully retail it after weeks (or months) of work, this episode lays out a framework to decide with clearer eyes.

Formulas for Valuing Time in Real Estate

The long-tail idea here—formulas for valuing time in real estate—isn’t about replacing common rules of thumb. It’s about adding a missing dimension. Investors often start with familiar guardrails like the “70% rule” (pay roughly 70% of after-repair value minus repairs to preserve margin). Useful, yes. Complete, no because time has a cost.

This part-two discussion argues for putting time directly into the math, not just into the narrative. The goal isn’t to abandon the money math; it’s to keep the time math right beside it.

Why time belongs in the equation

• Wholetail vs. retail: Selling as-is quickly (wholetail) usually nets less than a full flip—but often consumes far fewer hours and days held. Sometimes the “smaller check now” is a better time-adjusted return.

• Time is a currency: As framed in the episode, “time is money, but money was money first.” Said differently: cash outcomes still matter, but hours and calendar days are the invisible fees you pay to get that cash.

• Clarity at the crossroads: When a deal presents two viable paths, a time-aware formula helps decide whether the extra work and holding time are justified by the incremental dollars.

The simple time-value formula (and how to use it)

The host presents a straightforward way to factor time into decision-making:

1. Start with the anticipated net profit for the deal.

2. Estimate total hours you personally expect to spend on that property (site visits, coordination, photos, showings—everything).

3. Estimate total days held from purchase to sale (closing to closing).

Compute a score:

Score = (Net Profit ÷ Hours Spent) − (3 × Days Held)

• The first term, Net Profit ÷ Hours Spent, translates profit into dollars per hour of personal effort.

• The second term, (3 × Days Held), discounts that hourly value by time on the calendar (every day you own the property carries cost, risk, and attention).

Two real-world style scenarios from the episode

1) The burned duplex whole tail (fast, minimal touch):

• Condition: half burned, 7-foot ceilings, multiple issues.

• Bought off-market for roughly $6,000; listed around $20,000.

• Sold in ~10 days.

• Time spent: about 5 hours total.

• Net profit: roughly $13,000.

• Score (using the formula): high—comfortably above the 1,000 “go” line. Why it works: Tiny hour count, short hold, respectable spread, on a time-adjusted basis, this type of quick turn can be a no-brainer even if the top-line profit looks smaller than a full flip.

2) The seven-month flip (larger profit, heavier lift):

• Projected profit: around $50,000.

• Hours on site/work: roughly 120 hours (about three full workweeks).

• Hold time: about seven months.

• Score: very low (even negative), because the hours and days held weigh down the time-value return. Why it might still be okay: $50,000 is meaningful money. If the lifestyle impact is acceptable and risks are controlled, a low score doesn’t automatically kill the deal—it just tells you you’re buying those dollars with a lot of time.

What the score is—and isn’t

• It’s a filter, not a verdict. Use it to quickly sort opportunities and compare paths (wholesale now vs. renovate then sell).

• It’s scenario-based. You still have to estimate net profit, hours, and days realistically. Garbage in, garbage out.

• It complements, not replaces, money metrics. Keep your repair budgets, ARVs, and margin checks. The score sits alongside them.

When the formula shifts your decision

This is where formulas for valuing time in real estate earn their keep. Suppose you’re eyeing a mid-margin deal with two options:

• Option A: Wholetail as-is. Lower net, light hours, quick close.

• Option B: Full flip. Higher net, heavy hours, long hold.

Run both through the score. If A clears 1,000 handily and B drags far below, the “smaller now” outcome may be the smarter choice for your calendar, stress level, and opportunity pipeline. Conversely, if your full flip pushes a healthy score because the hold is short and the work is efficient, the bigger check may be worth the time.

Where investors often misjudge time

The conversation underscored a few recurring blind spots (all framed by the same principle: be honest about time).

• Under-counting personal hours. A dozen “quick” drop-bys add up. So do phone calls, photos, contractor check-ins, and re-showings.

• Ignoring hold-time friction. Every extra week means more decisions, more messages, more mental bandwidth—costs that don’t show up on a settlement statement.

• Over-weighting the 70% rule. It guards margin, but it doesn’t protect your calendar. You can hit a textbook buy box and still lose the season to one project.

Practical tips drawn from the episode’s approach

• Log your time. Even rough hour counts from past deals will sharpen your estimates for the next one.

• Price the hold. If a delay stretches a project by a month, expect your score to drop. That’s not failure; it’s feedback.

• Use the benchmark. A score over 1,000 is a green flag for time-value. It’s not the only flag you need, but it’s a helpful one.

• Remember the trade: Lower spread + low hours + short hold can beat higher spread + high hours + long hold when you’re optimizing for time-adjusted return.

A note on expectations and misses

Even with best-laid plans, real projects swerve. The host shared a flip that narrowly missed the 1,000 mark due to a month-long delay. The lesson wasn’t to abandon the framework; it was to learn from the slip. If the dollars still made sense and the lifestyle impact was acceptable, a near-miss can be fine—especially contrasted with the much bigger problems that come from miscalculating the money itself.

Why this matters in Greenville (and anywhere you work)

This is Selling Greenville, and the backdrop is the Greater Greenville market. But the principle applies anywhere: deals compete for your hours and your calendar. In a season where opportunities pop up off-market, where some properties practically ask to be wholetailed and others beg for the full treatment, this formula gives you a consistent way to compare, choose, and move.

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Bottom Line

Money still matters most—but time is the multiplier (or the drag) on every return. By pairing familiar buy rules with a simple score—(Net Profit ÷ Hours) − (3 × Days Held)—investors can see which path pays best after accounting for the hours they’ll spend and the days they’ll hold. Quick whole-tails can shine because they barely tax your calendar. Bigger flips can still be worth it—but the formula forces an honest look at whether the extra months and hours truly earn their keep. In short: keep your margins, and add a clock. Your future self will thank you.

Ien Araneta

Journal & Podcast Editor | Selling Greenvill