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Investments: Flip or Flop

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Presentation on theme: "Investments: Flip or Flop"— Presentation transcript:

1 Investments: Flip or Flop
By: Azjah Cameron

2 Overview Buying property/houses at ideal low prices
Making the necessary renovations and upgrades Then later reselling the house for a profit

3 Popularity HGTV Flip or Flop Fixer Upper Flip This House Flipping Out
Brother vs. Brother Love It or List It

4 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

5 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

6 Things to Consider Interest rates Property taxes Utilities
Capital gains taxes Unforeseen costs Staging and closing costs Building permits Insurance Human labor

7 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

8 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

9 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

10 Money Crashers Dave Ramsey Investopedia CNBC


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