Fix-and-flip is a term in real estate investment properties that deal with purchasing a property for sale, holding it, renovating it to make it look better and interesting to attract prospective buyers and sell it as fast as the real estate investor can.
Typically, a real estate investor has 3 types of homes that he can dwell with: the retail home, the fixer-upper, and the rehab home. Each one has its own different characteristics, depending on your budget, patience, hard work, and perseverance, you can choose the one you want to deal with or choose everything. A retail home is the easiest to sell and maybe even the fastest as it does not require any renovations or labor costs to upgrade it, whereas a fixer-upper is not typically the first choice among your prospective buyers but will knowingly stay at the back of their heads as a reserved option, deal with fixer-upper homes mean having to tweak tiny details about the house such as a fresh coat of paint, replacement of broken windows or doors and maybe even floorings. The rehab home, however, is the type of real estate investment properties which involves a lot of work as you have to consult an inspector, appraiser, and a contractor to be able to determine the current issues with the house and address it as soon as possible so it can be immediately sold.
With fix-and-flip, it is not guaranteed that you will be able to rake in a massive amount of money immediately, however, if done correctly, a real estate investor may be able to gain profit from this type of strategy but it should be taken note of that the more time you spend on flipping a house property, the higher your expenses will be.
The real estate investment properties method of fixing-and-flipping is at most definitely perfect for those who have more than $30,000 dollars in their savings account to cover all the anticipated expenses, as much as 3 months of time to be able to work on the project, has a trusted contact on contractors, appraisers, and inspectors to be able to deal with all the grueling work. With those inexperienced rehabbers, some rely on licensed contractors instead to man the renovations wherein he will provide a scope of the rehab work as well as the quote for the anticipated overall costs. This becomes a disadvantage as one has to rely on the word of the licensed contractor, that is why it is best that if you are going to invest in a property, you have to make sure you are well-versed on that field.
To learn more about how to become a better real estate investor, tune into more of our blogs here at Nicholas Haley and you, too, can be the biggest real estate investor in the country.