Fix & Flip Real Estate Investing Articles
In my earlier days of investing I was able to make 6 buy and hold investments from one flip sale. Like me, lots of Buy and Hold Investors will flip an occasional property as a way to create funds for down payments on their Buy and hold properties.
Fix and flip investing has become very popular after the housing bust. There is some (perceived) easy money to be made and with all the new T.V. programs on the air making it look so profitable everyone wants to do it. It is a trendy and quite profitable way to make some big dollars. This is how you can keep fueling your investment growth.
If you are like me and are fascinated by home renovations you too probably enjoy knocking down walls and getting dirty, or better yet watching someone else do the dirty work while you call all the shots. Watching transformation take place is fun and interesting as evident by the growing popularity of house flipping.
In some parts of the Country as much as 8 and 10 percent of all single family homes are fix and flips. According to Realty Trac (a company that tracks these real estate activities) suggest that profits for the average flips have increased from 20% to as much as 35% from 2011 to 2015. I believe as prices rise those percentages are slipping a bit but indeed the profits when done correctly can be quite profitable
Due to the popularity and demand for fix and flip funding this too has become much easier. It used to be you had to go out and find some rich money investor to fund your deals. This has held many flippers back because this was a task that would stop them dead in their tracks. They felt, if you do not know a rich person or have a rich uncle you were out of luck. Today we have many Brokers who do fix and flip funding so money has become easier to obtain.
Qualifying for fix and flips is also easier. Funding sources commonly known as private money lenders or angel investors are typically comprised of real estate investors who have amassed good deal of wealth by doing this very thing. They now promoted themselves to a more passive role of funding these projects instead of the active role of doing the actual purchase, renovations and re-sales. They get to stay involved, continue to make money on the venture that thye love and are passionate about and able to do this while sitting on the beach sipping on their favorite beverage. As they are relying on you to make them money their biggest criteria you have to meet is to prove you are a qualified person able to buy, fix and flip for a profit and see the job through to the end.
You will want to be able to prove your abilities, with business models and the ability to know your numbers. Execution is important and once you do a project or two with one funding source you will easily obtain funds for future flips as well.