The Advantages of Fix and Flip

Quick Money

The number one pro of the fix and flip strategy is that you make fast money. You can conclude your whole endeavor in a few months and walk out of it several thousand dollars richer. As far as real estate goes, this is the fastest way to make money. And depending on how good you are at buying low and selling high and how much efforts you put into renovating the house, you can make a lot of money with this strategy.

No Long-Term Commitment

Some people were just not born for long-term business projects. They have no patience, they start losing sight of things, they get distracted with other endeavors… Flipping is the right approach for these people. Because of the short timeframe of fix and flips, investors do not have to commit to any particular property or even to the real estate business altogether.

No Need to Deal with Tenants

Some people are not people people and would make terrible landlords. Fix and flip eliminates the need to engage in long-term relations with tenants, property managers, etc. You still need to work with property sellers and buyers, agents, and contractors, but these relations are strictly business. With property flipping, you don’t have to worry about getting a bad tenant who will destroy your rental or someone who will be late with the rent each and every month.

Moving on to the Next Project

Because fix and flips generally take just a few months to complete, you can soon be on the next project you have in mind. Actually, as you gain experience, you can start going through a few projects each year. The money you make from one will be used to finance the next, bringing you even more cash in. So, there is an important potential to grow your business.

Forced Appreciation

Appreciation is one of the ways to make money in real estate. With fix and flip, you can make good use of forced appreciation by implementing improvements on the property to increase its value before you sell it.

Leave a Reply

Your email address will not be published.