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3 Types of Property Flippers

3 Types of Property Flippers post image

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:

  1. The Scout
  2. The Dealer
  3. 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.

Wrap Up

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.

About the author: I work as a property negotiator as well as writing articles, tips and advice on real estate at HartanahDiSini.com. Has a deep interest in property transactions and investment.

{ 28 comments… add one }
  • Easy Home Repair June 1, 2010, 3:35 pm

    I love being the retailer. I love to be able to fix the property myself and get the full profit out of the deal. I don’t understand why people would sell the info on a great deal when they can make 10 times as much flipping and selling the house themselves. But oh well i will make the money for them, I don’t mind.

  • Jayson June 2, 2010, 2:12 pm

    For me, I love to be a dealer all I need is PR skill I have nothing to invest for a business. But on the other side profit is limited. It is really good to be a retailer also, because you can maximize your profit.

  • Junk Removal Toronto June 4, 2010, 9:09 pm

    Property flipping seems exciting, but also quite risky especially in today’s unstable market. I would bet that all of the house flipping shows on TV have lead to a lot of people trying flipping, and a lot of them unfortunately failing.

  • The Best of Phoenix June 9, 2010, 12:11 am

    That’s an interesting line of business. Sounds a bit risky, especially nowadays. But in good times I believe it can be a great source of income.

  • noosa accommodation June 10, 2010, 2:49 am

    Most private lenders prefer this anyway, as it means that all their money is earning interest.

    • Jessie Leon August 13, 2013, 9:09 pm

      The profit to be completed from house flipping fluctuates greatly as it depends not only on the housing area and acquisition cost of the home, but the operating expenses of the flippers and how close they keep on to budget and time fetters. The longer the house sits lacking being sold, the less profit the flipper makes if a monthly residence compensation has to be made.

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  • FlippApps June 10, 2010, 2:51 am

    However, most investors have discovered that even well-qualified borrowers (great credit, cash reserves, proof of income, etc.) are unable to get mortgages to buy or refinance investment properties.

  • La Zagaleta June 10, 2010, 8:16 pm

    Flipping property can be a dangerous game in you don´t fully understand your risk profile. Research is key and so is having the ability to follow a purchase through with all the associated costs.

  • Clearwater Realtor June 16, 2010, 2:12 pm

    As a Tampa Bay, Florida real estate professional I’ve found that most “investors” seeking to buy a property, fix it up a bit, and then flip it for a profit, are a complete waste of my time. They are all searching for that special gem of a house that, if it really existed, would be bought by the 8,000 Realtors that have know about it since it hit the market.

    Most home flippers are so money-oriented that they lose their personal ethics. They use one Realtor after another and have zero loyalty to any of them. Sorry for being so negative, but I’ve been a full-time Realtor for a decade now and I have dealt with dozens of investors and never sold more than a small handful of homes to them. Give me a buyer looking for his or primary residence any day!

    By the way my real estate blog is a dofollow blog so comments on my posts will give you the link juice. http://www.CallChrisToday.com But your comments must show that you read and understood my posts.

  • Net Lease Properties June 20, 2010, 4:35 am

    This was very relevant to South Florida a few years back. I do partially agree with the comment by “Clearwater Realtor” in that I have seen Realtors work very hard and then have the Buyer/Flipper not follow through. My experience is that the best properties to flip do not reach the MLS. Meaning the Scout or select Realtor find them and close on them before a Listing is achieved.

  • Apartment Software June 22, 2010, 6:11 am

    These are the good points regarding a property dealer, as we all know property dealer is a person who can earn more in this business…

  • AV Homes June 23, 2010, 5:08 am

    Those are three very different types of investors. I’ve worked with dealers before, who come to me and want to sell houses before the purchase is complete. It can be very lucrative, with less investment because they don’t have to pay the monthly mortgage while they are waiting for their property to sell. Kudos to them.

  • Christopher Ronk June 23, 2010, 5:43 am

    Looking for distressed property, buying it and fixing it up and reselling it the way to go.

    As with anything; you buy low and sell high. Not too high though. You need to sell it in a hurry.

  • Mudassarali143 June 28, 2010, 7:02 pm

    Hey buddy I must say thanks to you for providing such a useful information…

  • Singapore Property June 30, 2010, 6:36 pm

    This is really very informative article for me I got it very useful.

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  • Personal Finance Software July 1, 2010, 6:10 pm

    Lots of risk involved in this business but looks quite interesting thanks for sharing this information…..

  • Howard Flaschen July 6, 2010, 6:21 am

    The above 3 descriptions are a great way to break down your home flippers. As a Real Estate professional, this coupled with your typical DISC personality assessment, should put you in good standing with investors that come calling.

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    These are the good points regarding a property dealer, as we all know property dealer is a person who can earn more in this business…

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  • protein bars for weight loss February 3, 2012, 12:34 pm

    This was very relevant to South Florida a few years back. I do partially agree with the comment by “Clearwater Realtor” in that I have seen Realtors work very hard and then have the Buyer/Flipper not follow through.

  • Team TAG February 10, 2012, 12:14 pm

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  • property agen June 15, 2016, 9:12 am

    Thanks for sharing your thoughts on dealer. Regards

    • Bert May 3, 2017, 11:02 pm

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