Posted by Tony James on December 17, 1999 at 09:35:16:
buy @ discount, Sell for more… Make Profit
example…
Buy home worth $90,000 (after fixup)…you pay $45,000. Fix it up, sell it for $90,000. Make $45,000 Dollars.
Flipping is bad when the House is appraised for more then what it is worth. For example…
You buy house for $45,000… You get it appraised for $90,000. But it is only worth $70,000. But you sell it to someone for $90,000… The buyer is ripped off for $20,000.
What does “flipping” mean??? - Posted by Ana FL
Posted by Ana FL on December 17, 1999 at 08:56:04:
Is there a difference between flipping a property and buying then selling???
Thank You!!
Ana FL
Re: What does “flipping” mean??? - Posted by Ed
Posted by Ed on December 17, 1999 at 15:31:46:
Ana,
I’m no expert but one way to “flip” a property is to buy it and sell it in the same day. You find a buyer that you get pre-qualified and have them find a house they are interested in. Most buyers that you find are the ones that normally can’t get qualified through conventional lenders. Once they find a home, you step in and make an offer. If accepted, you buy from the seller and sell to your buyer on the same day. At closing you create a note for the amount you sell it for and sell it to an investor. The difference you put in your pocket.
This is just one way. But believe me, it’s well worth looking into. Especially if you are not sure about being a landlord and all you want to do is make money in real estate.
Keep the faith and happy holidays.
Good luck.
Ed
Re: What does “flipping” mean??? - Posted by Tom FL
Posted by Tom FL on December 17, 1999 at 10:19:47:
Ana,
Flipping in my experience is normally used by Wholesalers.
Eg: A wholesaler gets a contract on a house (needing repairs) for $20K he will then sell (aka flip)his contract to a rehabber for say $3-4K. The rehabber will close on the house do the repairs and remodeling and then retail the house.
Tom