Fix and Flip


Fix and flip is a real estate term to describe the activity of buying a house, rehabbing it, and selling it for a profit.


Let's look at an example:


House A was in poor condition and available for sale on OfferMarket for significantly below it's after repair value (ARV). Joe the flipper bought the house for $100,000 because he knew that if he invested an additional $100,000 into repairs, he would be able to sell it for $300,000 based on comparable homes ("comps") in the neighborhood. Because he sold his completed fix and flip on OfferMarket, he avoided real estate agent commissions and received a competitive price because he made buyers compete with an auction listing. Joe made $100,000 in gross profit and over $50,000 in profit net of short term capital gains tax, closing costs and interested owed to his private lender.


Image of suburban housing development from birds eye view

Get Offers

Get multiple commission-free, AS IS offers from qualified buyers and close on your timeline.

Name
Phone

Marketplace

Create a no cost, no obligation listing on OfferMarket

Phone