Flipping in a nutshell is purchasing a property, and then selling it for profit. This process is generally carried out in a very short amount of time, making the flipper a decent amount of profit, in the shortest time period possible.
People have been flipping homes for decades, however the term is only now becoming popular, as is the practice of flipping a peice of property.
Generally when in search for a house to flip a flipper will look for a house in duress, whether it is a tax lien home, a home being foreclosed upon, being sold in an estate sale, or just a house that is showing many signs of age, the flipper is looking for a house that can be bought for much less than it will later be sold for.
As you may have seen on recent television shows such as Flip This House, or Flip that House, etc. A very popular way to Flip a House or a piece of real estate is via renovation. As a real estate investor, the house flipper looks for a property that is outdated, or in need of cosmetic assistance, in a good neighborhood, where the home will later sell for a tidy profit.
An investor that looks for properties in need of renovation generally provides the community surrounding that property with a great service, if in no other way than by removing a possible eyesore, or just increasing property value all around by making the real estate property more appealing.
However, not all people that flip houses for a living renovate these houses, in fact, many are bought in foreclosure, or in estate or other like sales at a bargain, with the intention to quickly flip the house at market price, or the best price they can bring from the property, without actually making any investment past the price of the home.
As with any investment, there is always the possibility that you will not get back what you put in, things can come up later in older properties that you didn’t see before purchase, termites perhaps? Any number of things can come up during a flip, when they do, you may take a loss, in the meantime however, whatever happens, we’ll be hear to give you advise in the forum, to take your advice during our adventures, and lastly to hear your brags, and rants.