Forclosed vs. Flipping

[Merrick484]

Hello group

New to real estate investing and just have a simple question. Now I know when you purchase forclosed properties or bank reo's that you buy low, rehab, and sell quick. Now what is the difference when you flip a property. Are you buying low and immediately selling for a higher price without the rehab work. Please any response will be much appreciated.

[tedjr]

Howdy Merrick 484:

Flipping is a slang term basically meaning to make a quick buck. You can flip a contract also known as wholesaling where you never even take title to the property. One may even consider a quick rehab a flip too where the only rehab may be carpet, paint and cut the grass etc.

Lots of luck and hope this helps splain it
Merry Christmas too

[drackard]

hello everyone i am new also
.just discovered this site and excited about the information sharing.would you recomend joining an investment club or going solo.really in need of someone to show me the ropes.would like to make aquick buck to prove to my doubtfull wife this really works

[SD Newbie]

Drackard,
Just a quick questions for you...

What personal steps have you taken to educate yourself on real estate investing?

As far as joining a REI club, that would be one of the best things to do as a beginner.     That was one of my first steps and I am very happy that I went... I'll probably be joining the club at the next meeting...

I hope this answers your question...



SD Newbie

[Dave T]

Hello group

New to real estate investing and just have a simple question. Now I know when you purchase forclosed properties or bank reo's that you buy low, rehab, and sell quick. Now what is the difference when you flip a property. Are you buying low and immediately selling for a higher price without the rehab work. Please any response will be much appreciated.

Merrick484,

Any time you purchase a property which you quickly resell for profit you are flipping.  Whether the property you purchase happens to be a bank owned foreclosure or a property for sale by owner, you can still flip it if the deal is right.  Sometimes, to add value to the property and to increase your profit, you will rehab before you flip.

Buying a fixer, then selling without doing the rehab is a wholesale flip.  Buying the fixer, rehabbing, then flipping is a retail flip.

Putting the property under contract then selling your contract to another investor for an assignment fee is still a flip -- flipping the contract rather than the property.