Flipping
property for fast profits
At least three excellent new real estate books
have come on the market this year about "Flipping
real estate " for fast profits.They are
"Fix it and Flip It," by Katie and
Gene Hamilton (McGraw-Hill, NewYork); "
The Complete Guide to Flipping Properties,"by
Steve Bergs (John Wiley and Sons, Hoboken, N.J);
and "How to be a quick turn Real estate
Millionaire," by Ron Legman (Dearborn-Kaplan,
Chicago).Maybe you are not familiar with real
estate terms” flipper" and "keeper".
A flipper property is held a few minutes, days,
weeks or months and quickly resold at a higher
price for a fast resale profit. But a keeper
property is one held for long-term investment
returns from both the buyer and seller rental
benefits and the probable appreciation in market
value.
Flipper properties hold special appeal to new
real estate investors who want quick resale
profits. Many investors in flipper profits have
learned how to evaluate potential purchases
and see the profit opportunities others have
missed.
The King of Flippers
Without question of Florida real estate investment
returns, the king of flipper properties is Marco
Kozlowski of Orlando.RonLe Grand explains in
his new book how Kozlowski paid $100 for an
option for a wealthy home seller to acquire
at $4 million the seller's Orlando house, which
had been listed for selling and buying with
a Realtor at $8.6 million for four years.
Kozlowski, a thirty something realty investor
for buying and selling homes, then hired a professional
auction company, which, 43 days later, auctioned
that home for $5.6 million cash. The result
was a "quick flip," $1.6 million gross
profit. According to Legman, in his first year
of Flipping home, Kozlowski acquired 119 deeds
on flipper houses in the Orlando area. Today,
he teaches others how to profitably flip properties
of real estate invetments.
Finding Profitable Flipper Properties
The key to acquire potential profitable flipper
properties is to buy (or gain control with a
purchase option) a property substantially below
its true market value. Bargain purchase price
properties, bought at least 25 percent below
full value, offer the best flipper opportunities.
So-called "Fixer-upper properties"
are the obvious best choices for Florida real
estate investment fast-flip acquisitions.
The key to success is to look for "dumpy"
fix-up properties. Which have "the Right
things Wrong”. Examples include the need
for cosmetic improvements, such as paint (the
most profitable improvement of all), fresh landscaping,
general cleaning and repair, new Kitchen Cabinets
and Appliances, and new light Fixtures.
But avoid acquiring selling property needing
costly but Unprofitable repairs that add little
or no values, such as foundation repairs, a
new roof and structural changes. The goal of
most Florida real estate investment returns
fix-up property flippers is to add at least
$2 of market value for each $1 spent on fix-imp
costs.Sources of " fast flip"
property includes local realty agents, foreclosure
sales, probate sales, divorces, bankruptcies
newspaper classifieds ads, unsold MLS (Multiple
listing service) listings more than 90 days
old, vacant rental houses, absentee out-of-town
owners and properties with unpaid property taxes.
However, one of the best sources of Florida
real estate investment returns flipper properties
is to drive around neighborhoods that interest
you. (Except gated communities) has one or two
vacant, run-down or abandoned houses. This happens
even in the best areas.Finding the owner can
be a major challenge. But perhaps that owner
will be motivated to sell to you at a below-market
bargain price so you can make a "fast flip"
resale profit.
