Flip sales, also known as wholesale real estate investing, is an investment strategy that allows investors the opportunity to purchase a property with the intention of reselling it quickly, and for a sizable profit. In February 2016, flip sales were up 7.6% for the month and nearly 16% over the past 12 months. It is also worth noting that these sales accounted for 4% of the total sales, despite the fact that January and February generally tend to have lower flip sale numbers due to seasonal factors that impact the overall real estate market. Flip sales are slated to increase during the month of March, in conjunction with the start of the Spring selling season.
When dealing with high-end flips, whether it is a foreclosure, short sale, trust sale, or a beautiful property that needs a bit of work, don’t make the mistake of stereotyping about sellers or buyers. This limits the opportunities you may have to take advantage of an amazing market for flip houses. Instead, keep an open mind, be discerning, and make your real estate investing dreams come true.
Most people tend to think more about foreclosures and short sales, but if you can find and rehab a higher-end property such as a luxurious house or condo, you have a lot of advantages over lower-end properties. Because many of these properties are close to move-in ready, and come with eye-catching appeal, it is easier to get write-ups in real estate/ architecture publications and websites. This is much easier to do because you have something that they want to show off.
Stay tuned for the second entry of our blog on Luxury Flips.