Flipping Real Estate is slang, used by Real Estate Investors, for buying a property and reselling it for a profit.
Buy Low - Sell High, or buy low to Fix-and-Flip.
Wholesale - Retail
Buy at a Wholesale price then sell at a retail price. Every business selling merchandise buys their products at a wholesale price to resell for a profit.
Real Estate is no different; it just has the biggest price tag in the business world. Therefore bigger profits may be earned with a word of caution: bigger losses as well unless...
Risk Management is part of your system.
Flipping a wholesale property does not involve any repairs or improvements to the house...
Buy It As Is - Sell It As Is, For a Profit. Wholesale is the production method of flipping real estate and is more geard towards a marketing business... what ever you like to do.
If your considering the business of wholesaling properties, the mark up price is usually between 2% and 10%, although every once and a while a huge profit can be made that is a win - win scenario.
Key Success Strategies in the real estate investor business are: Building Relationships, Helping Others, Solving Problems, and providing Quality Workmanship and Professional Service.
Eventually the Great Deals: WILL FIND YOU!
Flip That House
Flipping Houses or Flipping Real Estate simply put means buying a house and selling it fast, within a few months.
The real estate investor industry uses many slang words to describe what we do...
Slang Words - Confuses Our Customers, and Ourselves!
The Better You Can Identify What You Do...
The Better You Will Be At It!
I use slang words when referring to myself as a Rehabber, that flips houses, and the people I know understand exactly what I mean, I think! It's not important what other people think about what I do, however...
It's very important to know exactly what I can do!And it's just as important for you to know your skills when rehabbing a house you want to flip for a profit.
The Point Here is this:
A clear defined description of what specific type of work we do...
Makes the work we're good at, easier to find...
And better for us to get referrals because people will know exactly what we do. Thus, try to be specific when telling others what you do as a Rehabber and explain them exactly what flipping real estate means. (Just a marketing suggestion)
Fix and Flip is slang for repairs and maintenance to resell.
Bring the house up to code... The City Building Inspectors evaluate your property and site building and safety code violations. Now you have a list to work from. The work begins; fix it or get estimates and hire the repairs out.
When the work is done, the City Inspector will re-evaluate your house or building to make sure it is up to code and safe for occupancy. If it is, the inspector will issue a Certificate of Occupancy (C of O) and you're ready to sell.
Keep in mind, the City Inspector may be a little tougher if you tell them you're flipping real estate for a profit!
Note: If you miss something or the Building Inspector missed something on the initial inspection, you will have to fix or re-fix anything and everything until the property is safe for occupancy and up to current building codes.
The Frustration: "I fixed everything and the Inspector found more things for me to fix".
For some folks this is bothersome!
For me it is the advantage point I need to prove to my buyers that the home has been inspected, it's safe, the repairs are done - and ready to live in!
A Real Estate Rehabber goes the extra mile...
Rehabbing is more than doing a little maintenance and flipping real estate. We do demolition and remodeling! Flipping real estate may sound easy until the construction begins! It's quite a bit more than your average real estate investor likes to do... Therefore, Less Competition!
Slang words again... Rehab and Rehabbers are about Rehabilitation, thus we are rehabilitating an old house or building.
Typically, rehab definitions are referred to people and animals in need of recovery from a mishap to restore to physical functionality.
Real Estate Investors have adopted this term and applied it to distressed properties that need major repairs such as;
new kitchens and bathrooms, removing walls and opening spaces, foundation repairs, new roofs, additions, new walls and floors, finishing an attic or basement, adding a garage, etc.
Rehabbers are generally skilled-trades people that like to do heavy reconstruction and remodeling.
There are exceptions to this rule:
General contractors who sub-contract all the work, real estate investors who over see the projects without doing any of the work, thus coining the phrase - "Write Checks and Get Checks".
Gender Specific - Absolutely Not! You're still a Rehabber if you own the job and hire everything out. You’re the Brains, Motivation, and Money behind the scenes.
A Fixer-Upper is something to look for!
Buying the worst house on the block is a trick of the trade. If you tell a Realtor® you’re looking for a fixer-upper, they usually know what to look for.
If you don't have a Realtor® and would like a Professional to give you a call, that knows what you're looking for, Click Here. No obligation, only that you agree to talk with them.
Please Note: Unless you know your Realtor® personally, don't walk into a real estate office boasting that you're "flipping real estate", it's a bit of a turn off.
Realtors® are faced with many beginner investors who just bought a "real estate guru product", acting like big-shots, that never buy anything.
Drive around your neighborhood and spot the houses that are in poor repair.
They need; a new roof, new siding, new window, new landscaping, a new drive way, etc.
You can bet that if the outside is in poor condition, the inside is too!
If there isn't a for sale sign in the yard, go knock on the door and ask if they would like to sell their home - it's a Bold Move... Use Caution!
It's probably better now days to take down the address, and send them a letter, stating you are willing to buy their home if they would be interested in selling.
Remodeling Old House...
My favorites are old houses and old store front buildings. I rehabbed the house I live in that was built in 1922 and found old skilled trade methods and materials that are not used today like; lathe and plaster, timbers for support beams, stone block for foundations, everything is wood - no plastic moldings, 8" base boards, 9-foot ceilings, cast Iron drain - waste - and vents, solid wood interior doors, antique fixtures, and so much more.
Coal Chutes and Milk Chutes... What more can you ask for? It is an added pleasure to work on a home or building that has some History in it.
Old House Remodeling may not be for beginners because blending new materials with the old material is added work and money if you’re just trying to flip for profit. Stick with 1980's or newer for easier remodeling Tasks.
If you're a Craftsman, an Artist, Historian, old houses and buildings may be right up your alley. Check with your Down Town Development Authority to see if the property qualifies as a Historic Site and claim Grant Money to fund your project.
Caution: Remodeling Old Houses may contain hazardous materials like lead based paints and asbestos on the furnace, duct work, and pipes.
As you can begin to see... Flipping Real Estate may not be as easy as it sounds. Work withing your skill level and budget!
There are easier projects that simply need the grass cut and the windows washed... or maybe paint and carpet.
Flip This House...
However you say it, what ever it takes to motivate us to take on the project. Don't be fooled by the spin of the words; yet on the same token, Flip This House, sounds more exciting than the work involved when saying, "buying - remodeling - and selling a house". Flipping real estate for fun and profit is the Rehabbers point of view, however...
There is a lot of paper work involved not to mention repairs and remodeling... Still in all, if you want to call it, "Flip This House" and it pumps up the motivation - go for it!
Caution: Buyers are not too motivated when they realize they're buying a house from a real estate investor making a quick profit.
Be careful on how you present your nicely refinished homes to your buyers.
Flipping real estate sounds good, but not to your buyers! Boast about your craft and the quality of the home you have to offer... Nice, Clean, and Safe.
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