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Investments: Flip or Flop
By: Azjah Cameron
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Overview Buying property/houses at ideal low prices
Making the necessary renovations and upgrades Then later reselling the house for a profit
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Popularity HGTV Flip or Flop Fixer Upper Flip This House Flipping Out
Brother vs. Brother Love It or List It
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Breaking it Down Learn your market Understand finance options
Learn to negotiate Costs of average projects Network Research listings and foreclosures Find/build your team Relist and sell
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Risk vs. Reward House flipping is at the most popular it’s been in a decade AGP in 2017: $66,448 In 2016, 12% of flips sold at break-even or loss 28% of flips returned 20% less than the purchase price 20% is the minimum profit High-risk investing High risk, yields high rewards
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Things to Consider Interest rates Property taxes Utilities
Capital gains taxes Unforeseen costs Staging and closing costs Building permits Insurance Human labor
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Strategies & Methods Start with a plan Buy low, sell high
Make smart renovations Use the 70% rule Pay no more than 70% of the after repair value (ARV) of a property minus the cost of the repairs needed. Find a mentor/partner
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Getting Started Great credit PLAN
Research the market (up-an-coming cities, growth) Research the ideal location (school zones, cost of living) Time Patience Strong work ethic Cash Decreases the need for accruing debt
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On the Rise 1. Tennessee Average house listing price: $268,692 Average time to flip: 147 days Average profit: $57,600 Average ROI: percent 2. Pennsylvania 3. New Jersey 4. Louisiana 5. Colorado
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Money Crashers Dave Ramsey Investopedia CNBC
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