There are various person that you will meet when dealing with real estate matters and one of them is the property flippers. Property flipping is a way to gain profits in doing real estate business.
Flipping real estate involves buying a property with the target of selling it within shortest possible period in order to gain immediate profit. Being a property flipper does not require any license to practice real estate besides getting benefit from high profits and flexible work timings. And these are some of the factors why property flipper is a great chance for you to gain profit in real estate business.
Flipping real estate is not investing – as some people might think. I defined it as a powerful strategy based on ‘Buy and Hold’ strategy which generate huge amount profits for yourself in the end. Sounds simple and interesting but always keep in mind business always grab you into complicated situations. The common advantage of property flipping is the shorter period needed for the revenue. Getting profits in no matter of time is interesting and you can get it right through the exploration of your creativity.
There are 3 types of property flippers:
- The Scout
- The Dealer
- The Retailer
Let’s see more detail about these property flippers.
1. The Scout
The Scout is a person who gathers information on potential real estate deals and sells the information to investors who need the information. Most of the information including data on the real estate deals. You can start your career by being a Scout as it does not require any capital or experience to gather the information needed. The charges are based on the potential of the information gathered and a Scout could make one to five thousand dollars each month by just doing this.
2. The Dealer
The Dealer locates a bargain property and signs a purchase contract with the property’s owner. He then can choose whether he want to sell the property, or just selling the contract to another investor. A Dealer provides more than information where he also control the property with a binding purchase contract. Being a Dealer needs money to secure the deal and this means the risks for a Dealer is bigger than a Scout however it also means the profit for a Dealer is greater.
3. The Retailer
The Retailer buys properties from a Dealer or through the assistance of any real estate agent or Scout. A Retailer fix and improve the property so he can sell it for new full retail price to the new owner or occupant. A Retailer needs more money compared to the Scout and Dealer means that he has to face but in the same time has the chance to gain the largest profit on each deal. It may take a Retailer about months or year to gain the profit as it involves more capital and revenue.
We had discussed the three different types of property flippers, who they are and how they works. Hope it could help you in dealing with these property flippers when dealing with real estate matters or if you want to build your career in real estate business.