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Your email address will not be published.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

New Samsung Galaxy S8 Release Date in U.K

Galaxy S series is the best and famous android running smartphone by Samsung and the upcoming device in this series is Samsung Galaxy S8 which is going to be visible in April, 2017. Samsung is going… read more

Wildfire near L.A.: Firefighters brace for wind gusts, heat – latimes.com

Wildfire near L.A.: Firefighters brace for wind gusts, heat – latimes.com.   Find more on our new post which is about samsung’s upcoming smartphone galaxy s8.

05streets-1-articleLarge

Real Estate of Edith Warton’s ‘The Age of Innocence’ – NYTimes.com

A Pair of Bluebloods With Blueprints Real Estate of Edith Warton’s ‘The Age of Innocence’ Rowhouses built by Rebecca Jones stood on the east side of Fifth Avenue, from 55th to 56th Street, in 1870…. read more

5-Hunt1-popup

Walk to Train Essential

Walk to Train Essential Nicole Bengiveno/The New York Times The Buyer Gary Kuchta is reconfiguring the space in his new two-bedroom apartment. By JOYCE COHEN Published: January 2, 2014 By the time Gary Kuchta moved to New… read more

Apartment for Sale, Taste Included

Apartment for Sale, Taste Included Sasha Maslov for The New York Times Cindy Gallop’s décor was influenced by a night in Shanghai. Now her apartment awaits an equally romantic buyer. By JOANNE KAUFMAN Published: January 3,… read more