Posted by Jim FL on March 10, 2002 at 03:30:06:
Bill,
A paragraph or less? hmmmmm?
I guess it depends on who you ask, or where.
But, commonly, in the context used here most often, a “flip” means to wholesale a property.
This means that you either buy the property, or get it under contract to buy, for a LOW price, WAY under value, and then sell it to someone else, either with a simultaneous close or assignment.
A “Wholesale flip” basically means to buy cheap and sell cheap.
Example:
You find a seller willing to sell their house to you for 50% of value.
You then turn around and sell that same house to someone for 70% or less of value.
Wholesaling is a better way to describe this, in my opinion.
Take a look at the “How to” articles here.
There are some about “Flipping”.
There are also those who call a quick sale, no matter the price paid, or negotiated for the property, as a “flip”.
Because you are flipping the property over for a quick sale to make a profit.
HTH,
Jim FL
P.S. Try not to use the term “Flip”, because in some circles, this has a rather negative conotation.
Just do a search engine querey on “Illegal flips” and you will see what I mean, even though this term is not accurate.