Overview

What Is House Flipping?House flipping is when a real estate investor buys houses and then sells them for a profit. In order for a house to be considered a flip, it must be bought with the intention of quickly reselling. The time between the purchase and the sale often ranges from a couple months up to a year.There are two different types of house flipping: An investor buys a property that has potential to increase in value with the right repairs and updates. After completing the work, they make money from selling the home for a much higher price that what they purchased it for.An investor buys a property in a market with rapidly rising home values. They make no updates, and after holding the property for a few months, they resell at a higher price and make a profit.We're mainly focusing on the first definition of house flipping, providing you with tips to help you choose a property, make renovations, and sell the smart way.Flipping a house can be a great way to make a lump of cash from property relatively quickly - but it involves finding the right opportunity, financing it, getting the numbers right, and executing to perfection. This guide will take you step-by-step through everything you need to do...WHAT IS FLIPPING?Flipping a property is quite simply buying at once price, then quickly selling at a higher price.It's also known as: TradingFix and flipBuy-to-sell Buy-to-sell is probably the most useful term, because it indicates the intention clearly and sets it apart nicely from buy-to-let. But I like flip because...hey, it's a fun word to say.Flipping may or may not involve refurbishing the property. To some people, the term flipping only applies to situations where you don't do any work (for example, you buy at a huge discount for some reason and immediately put it back on the market again), but I don't discriminate: I'll use it for every buy-to-sell scenario.Clearly, there needs to be some reason to justify the higher sale price - and it can't be capital growth, because the purchase and sale are usually only months (not years) apart. That's why refurbishing the property is normally part of the flip process, but doesn't have to be. You could also uplift the value by: Extending the leaseResolving a legal issueJust flat-out buying a bargainAs I said though - for the most part refurbishment is involved, and I'll assume that it is for the rest of this guide.WHY FLIP?Flipping a property is a great way to make a big lump of cash in one go.Let's contrast it with buy-to-let (BTL). With BTL, you might make a few hundred pounds in rent every month - then get a big lump sum years in the future if you sell when the price has gone up.With a flip though, you make the whole lump sum in one go - in as little as few months after buying the property in the first placeNeither of these is better than the other: it's all a question of strategy. Flipping as a model doesn't suit everyone, but it tends to work well for these purposes: You want to quit your day job quickly. Building a large enough buy-to-let portfolio to replace your income through rent would take years, but you could execute a couple of flip projects each year - the profits of which could replace your salaryYou want to raise the funds for buy-to-let deposits. If you've got enough of a deposit for one property, that's not a lot of good for building a portfolio: once you've bought one, you're out of cash and a bit stuck. If you use that cash to flip a property though, the profit could be enough for a buy-to-let deposit - while you've still got your initial cash to flip againif you are interested in learning more about this amazing business you must read this book.....................

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