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Why Wait To Be Great: Fix or Flip - BRRRR
Step by Step process to completing your 1st investment property or sell for profit.
Week 1- The Mindset of an Investor
Week 2- Finding a Great Real Estate Deal
Week 3- Analyzing a Deal & Making an Offer
Week 4- Profit Strategy #1: Wholesaling
Week 5- Profit Strategy #2: BRRRR (Buyer, Rehab, Rent, Refi, Repeat)
Week 6- 7 Sources of Funding
Week 7- Creating a Scope of Work
A house “flip” is when an investor buys a home with the intent to resell it a short time later at a higher price. For many real estate lenders across the country, including my own hard-money lending company, that “short time” refers to any property bought and sold within a 12-month period.
The Three Categories Of Flips
There are three main types of flips: wholesaling, “wholetailing” and the best known, fixing and flipping.
1. Wholesaling a property can be accomplished one of three ways. You can assign the purchase contract (to the next seller). You can sell via a double escrow (one escrow for the investor’s purchase and one for the sale to the second investor or end user. These are open concurrently but will close in the order of sale.). Or, you can purchase and quickly resell without remodeling the property.
2. Wholetailing a property is accomplished by purchasing a property, doing a quick cleanup of the property, then putting it back on a multiple listing service (MLS) to sell to an investor or an end user.
3. Fixing and flipping is when an investor purchases a property, remodels the property to add value and then (typically) lists it on an MLS to sell to an end user.
Maximizing These Opportunities
So how can you make the most of these opportunities? And what happens to your money if the property takes too long to sell?
To maximize your success at wholetailing, you’ll want to “buy right.” Buying right means purchasing at a price that will allow you to re-sell at or below market value and still make a profit.
Success with the fix-and-flip method is also dependent upon buying right, as well as setting a realistic budget for the remodel and sticking to that budget.
So if someone wants a “new” home in one of these areas, they most likely will have to buy an investor fix and flip. So even though all those “reality” shows aren’t complete reality, there are still opportunities for those looking to flip properties.
Or
You can fix and keep the property for monthly cash flow through the BRRRR method.
The information provided here is not investment, tax or financial advice. You should consult with our staff by booking free coaching call.