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Fix and Sell
September 3, 2009 by Mortgage Align · Leave a Comment
What is a “fix and sell?” It’s the nickname for the practice of buying a home, renovating it, and then immediately selling it at a profit. Some ways to make sure that “fix and flip” can work-even in a slump:
Estimate Right
“Fix and sell” requires buying a house, renovating it and then immediately selling it at a price higher than the buying amount, plus the expense of renovating the house. The profit depends on how well you can price both your costs and take into account the time to sell the house.
Renting option
In the ‘fix and sell’ option, you can lease the property with an option to buy. Rent payment thus covers your monthly mortgage. When you sell, your profit increases by pocketing any fees that otherwise need to be paid to a real estate broker.
Houses are available with “fix and sell” financing, including loans for the purchase price and renovations. If you make sure that your time and cost estimates are on the money, your “fix and flip” deals can work out fine.
