Due to the proliferation of fix and flip shows on TV, the fix and flip strategy is typically people’s first exposure to the world of real estate investing. I mean, who doesn’t love Chip and Joanna Gains?
The fix and flip strategy consists of buying a property and renovating it with the hope to sell the renovated property at a profit.
In order to consistently win at the fix and flip strategy, you need to understand the whole process and diligently stick to a strategy.
I have flipped over 30 houses in the last 4 years. During this time I have executed on a wide variety of strategies, with most of the flips being extensive renovations.
The process of fixing and flipping is broken down into 3 high level parts. These are the purchase, renovation, and sale. Executing on each of these steps are important for achieving the ultimate goal of a profitable flip.
The first step when flipping a house is to find a property to flip. What is a distressed property? A distressed property, is a property that requires work to get it to the optimum sale state. Sometimes it can just be out of date or worn-out finishes.