FIX AND FLIP
Smart real estate investors can make a great living by doing “fix and flips,” which is the process of buying a property (residential or commercial), fixing it up (rehabbing it), and then selling it for a profit.
When this strategy is combined with foreclosures or short sales, a fix and flip transaction becomes a more lucrative real estate investments.
You need to be very knowledgeable about all aspects of a real estate deal before putting in an offer to succeed with a fix and flip. This includes knowing:
• that you are buying the property for less than its appraised, market or retail value
• how much investment (time and money) will be needed to get the property ready to be sold (rehabbed)
• how much will you be able to sell the property for after it is repaired (remodeled)
• how long will it take to sell the rehabbed property
A fix and flip real estate investment could work like this example: You buy a foreclosed home for $100,000, invest three months of time and $20,000 into rehabbing the property and getting it to “move-in” condition, then list and sell the house for $150,000. Take out your carrying costs and selling expenses and your profit is approximately $20,000.
Fix and flip real estate investments might be right for you if you can do the work on remodeling projects and/or supervise laborers. STRATEGIC ALLIANCE can help you build your team!
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San Antonio TX 78265