Everybody loves to see a person ‘just like themselves’ get rich real quickly on cable and satellite television shows through flipping homes. Canada’s Got Talent has a similar attraction. Although they don’t tell you how many folks had their hopes dashed after a first audition.
What Flipping Homes Is, and Is Not
Flipping is speculatively acquiring an asset, with the intention of selling shortly afterwards and returning a quick profit. Antique collectors frequent junk shops and street markets with that in mind too, as do investors who purchase initial public share offerings because they expect their value to boom. Other possibilities include motor cars, concert tickets, cryptocurrencies and our favorite topic real estate.
Flipping Real Estate Falls into Two Broad Categories
# Speculative Flipping is targeting real estate in a sector where the value is rising rapidly. A new hospital development usually attracts wealthy medical professionals willing to pay a premium to be able to respond to call-outs for expensive treatments, for example.
# Investment Flipping is different in that the speculator grows the investment by physically improving the value of the home through renovation and or cosmetic changes. They work on the assumption a buyer will pay more than their cost, because they get the benefit without the inconvenience.
However, real estate flipping is not a sure-fire recipe for success. Price is not infinitely elastic within a given neighbourhood. We know of many wannabee flippers that burned their fingers by over-extending. The best we can do is offer them a realistic price when they come to us just to offload the problem.
Flipping real estate is straightforward and simple at first sight. However, it requires far more than a casual understanding in order to be successful.
How Wholesale Flipping Suits Professional Investors
In wholesale flipping, a speculator obtains a right to purchase a property at a given, low price, subject to a cooling down period while they conduct due diligence inspections. During this period they sell their right on to a third party thereby making a profit. In this model the flipper never puts their hand in their pocket. Unfortunately more than a few find themselves stuck with a property they cannot afford, and a law suit pending too.
Leave Flipping to Experts, and Invest in Solid Property
A long-term investment in your own home gives you a store of real value that increases over time. We have some great properties on our books we would love to share with you. Let us find the right deal for you, that becomes the property your family returns home to at the end of every day.