House Flipping in general is when you purchase a property, and then sell it for profit. The process is generally carried out in a short amount of time, making the flipper a decent amount of profit, in the shortest time period possible. There are also Rehab Flips, where you would hold on to a property for whatever time it takes to complete the needed repairs or upgrades before placing the property back on the market to sell at retail.
People have been House Flipping homes for decades, however the term has only become popular within the last several years, as is the practice of House Flipping a property. There are local ADT security systems that can offer protection for a house flipping investment.
Generally when in search for a house to flip an investor 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. An investor 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 method to House Flipping is by rehabbing the property.
As a real estate investor look for a property that is outdated, or in need of cosmetic assistance, in a good neighborhood, where the home will later sell for a decent profit.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. This is commonly called "Wholesaling".
When doing wholesales your profit margins are smaller and you are usually selling the property "as is". 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 like plumbing, electrical or zoning issues. Any number of things can come up during a flip, when they do, you may take a loss, in the meantime however, whatever happens, I’ll be hear to give you advice during our adventures, and lastly to hear your brags, and rants. So get out there and let me see how you do your House Flipping.