What is a Fix and Flip
Better than a reality TV show
The goal behind a fix and flip is to find a property that is distressed and in need of some TLC. A lot of times you can obtain these properties at a discount since the average person looking to purchase a home might not have the time, funds or mental fortitude to do the necessary repairs the property needs. These properties often have a tougher time selling on MLS due to the target demographic viewing the property often want a family ready home. But this is where we see the value!
Why would some sell at a discount?
Often the owners of the distressed property are facing some kind of hardship leading to the property falling into distress. When these issues arise the home owner could use a lifeline to help them deal with these issues.
This is where a cash buyer or a wholesaler can be of help. A real estate investor can reach out to the owner of the property and provide them with a means of relinquishing ownership of the property while still making money.
A Fix and Flip Example
A good example of this is if a property goes into foreclosure it can provide a world of issues for the home owner. Not only will the home owner be removed from the property and it be returned to the bank, but it will destroy the home owners credit for at least seven years. Additionally if the bank seizes the property the home owner will often be left with little to nothing in compensation.
Here is where we come in. If we are able to off the home owner cash or some means of covering and escaping their mortgage they can often save the massive hit on their credit as well as potentially leave the situation with some money in their pocket.