Has anyone heard of "Micro-Flipping?" Can someone explain this, please?
Mico flipping popped up on my phone as I researched "hard money lenders". Found this info online at connectedinvestors.com...
To sum it up, Micro-flipping is fast, frictionless property flipping that is only possible with access to certain data sets.
The ‘micro’ in micro-flipping refers to the speed at which properties can be resold for a profit. A well organized micro flipper will already have buyers lined up so that they are effectively pre-sold when you contract new ones. Ideally you are in, out and paid less than a week and with less than a handful of hours invested in the deal.
The Keys To Successful Micro Flipping
- Getting access to the data
- Contacting the sellers
- Shifting them to the plentiful pool of buyers out there right now
- Keeping up your momentum
I think these guys are trying to sell a class or something but here is the link to the blog:
From what Jendayi wrote, it sounds like another word for wholesaling.
May be hard to gain traction due to mega ibuyers (Zillow, Redfin, Opendoor, etc...) already mastering this strategy. To me its the same as a mom & pop grocery store competing with Wal-mart.
I don't think of micro-flipping as speed wholesaling although that may be what most do. To me, micro-flipping is what I call lipstick flips. They are undervalued small houses or condos that don't need a lot of work, but too much work for a new person and not enough for a contractor to make what they want. These are ideal for AirBnb glow up renovations.
A lipstick flip is just one that needs minor cosmetic adjustments to get back on the market. When I started in real estate I usd to find a community with multiple units for sale in the same area. I would buy the lowest priced one, add new carpet and paint everwhere, maybe a couple small upgrades on cabinet handles or appliances and then put it back on the market and make 20k before the other units even sold.
@Johnathan Green - Micro-flipping is indeed "fast wholesaling". You get properties under contract and sale to a flipper without doing any of the work.
I've seen several businesses promoting a form of micro flipping. Speed flipping. I think we all try to move deals fast. Anyone serious will have or be building a buyers list. Micro flipping I know is being a middle man to a deal. You source a deal from other wholesalers convince them to let you sell it with a short inspection period. Then you either sell it through your list or find another wholesaler that is strong at disposition. Boom. No money to find the deal and make a small commission. Sometimes not so small. Some would call this a JV deal but you try to use a regular purchase agreement or tie up with a exclusive or non exclusive contract. So you get the rights to market. You could do a JV contract though. Interesting concept that some have mastered.