More Profit in Fix-And-Flip

Share on Facebook0Tweet about this on TwitterPin on Pinterest0Share on LinkedIn0Digg thisEmail this to someone

There’s More Profit in Fix-And-Flip

As a fix-and-flip investor you can enjoy one of the highest profit margins in real estate investment … if you do it right. There are many ways to make money in real estate investment; however a number of them are involve only a single profit component, or maybe two.

In simple wholesaling, you locate a property that you can control through an assignment contract or buy and resell with transactional funding. The profit component is simply your ability to locate properties at such a value that you can immediately resell them to another investor at a profit. In long term rental property investing, you’re getting two profit components, one the cash flow and the other equity appreciation, but the two components of profit are spread out over a long period of time.

Fix-and-flip investing provides two profit components, and they are funneled into a short period of time for full realization of all of the potential of the investment. You’re buying a property far below its current market value and even below its value in its current distressed condition. You could simply flip it right away and make some money. However, you are going to do the repair and rehab work as well. You’re going to be a general contractor which will entitle you to the profits contractors make when they are skilled in estimating and completing the work.

In its repaired and renovated condition you still hold a property with your costs below the current market value. This allows you to also profit from flipping the property to another investor for another profit component for you. The other investor usually desires long term rental properties for cash flow and equity appreciation, so they will happily purchase your flip at a small discount to current market value and a profit for you that includes the contracting profit and the value component.

Doug Clark
Star of Spike TV’s FLIP MEN
RealtyTrac Education Partner
#1 Real Estate Coach and Mentor Worldwide
Follow @demo_doug

doug clark flip men

Share on Facebook0Tweet about this on TwitterPin on Pinterest0Share on LinkedIn0Digg thisEmail this to someone
About the author

Doug Clark

Star of Spike TV's FLIP MEN. RealtyTrac.com Training Partner. #1 Real Estate Trainer Worldwide

More articles by

No Responses

Leave A Response

Your email address will not be published. Required fields are marked *

Connect With Us

Recent Posts

Technology Topic Tips

The goal of this kind of essay writing, as the particular title indicates, will be to give advice to the visitors. It’s an established approach to create an informal and friendly dash to your own… read more

How-to put up

This program comprises interviews with pupils. At current, there are just two free creating classes. These students are likely to understand a number of composing forms like books, stories, poetry, memoirs, and literary essays. This… read more

How to Make a Trash Bag Poncho

Composing an essay to numerous pupils isn’t just a tough project however a chilling one as properly. To enrich your essays that h AS changed. Take a look at this fully free composition instance. To… read more

Did the 47 GOP Senators commit treason, violate the Logan Work with Iran notification

Follow these hints himework you are going to obtain an excellent samples of positive and negative faculty essays. Ask them to draw an image or collection to really move with their article. Online documents are… read more

How-to Boost Your Work-Related Publishing

Custom article composing in our company is normally completed by specialist authors within the specific area research that have huge skills in study and composing. Writing a term paper is really not a straightforward undertaking…. read more