THE ANATOMY OF A SUCCESSFUL REAL ESTATE FLIP TRANSACTION

I received a text from a borrower recently sharing the success that he experienced on a single family flip.

He ended up doing more in the rehab than planned and taking longer that targeted, but was very happy with the end result.

It kind of reminded me of some of my past projects and also how those successful flips were beneficial to more than just me (and even some of the less successful ones too).

Not every deal is a winner, but the true wins benefit many.

OK, the investor completed the flip & made a profit.

But it is much more than that. Let’s see who else won (benefited).

The winners & how they won:

The investor - bought it for $102K, rehabbed for $59.7K, listed for $280K, sold over the list price

The seller – Sold the property at the price they wanted

The wholesalers – earned an assignment fee (there were 2 that JV’d on the deal)

The realtors – earned commissions helping the buyer & seller

The settlement agents – earned fees for their services

The insurance agents – earned a fee for their policy issued

The municipalities – earned fees for recording, transfer taxes, etc.

The contractors – earned fees for the services provided during the rehab

The lender – earned interest & fees on the funding provided

The utility companies – earned revenue for the services supplied during the rehab

The home improvement supply outlets – earned revenue from the supplies purchased during the rehab

The end buyer (homeowner) – purchased their home (their dream)

The homeowner’s family – secured a safe haven to build the family unit – studies show that homeownership can lead to a more stable family life, producing better grades for students and more happiness/harmony within the family

A winning flip doesn’t impact just the investor – it impacts many.

While successful deals are awesome, even the less successful ones can benefit others it touches.