Flip And Grow Rich is a technique used in real estate and housing industry and even though it sounds easy to execute, there is a time consuming procedure to. And if you have some white hairs, you already know that in a time consuming procedure, anything can go wrong at any step. Even though a salesman can make it sound simple, there are pitfalls such that if you fall in them, you end up paying an extremely high price, like you might end up losing everything.
It means you basically buy properties on the cheap and then sell them for a high price. At a principle and fundamental level, its called arbitrage. You haven’t really created anything new but you have used some information in your favor. FTC usually looks disapprovingly at these practices so be careful when you either get into such schemes as a seller or a buyer.
So what does Flip and Grow Rich means:
But on the whole this art is called flipping the property. Its a different case altogether if you buy the neighborhood and then redevelop to make it high priced and then sell accordingly. Now you have value added to what you brought and you are selling on the high.
According to its practitioners, this is one of the really get rich quick schemes but they do not add any value. They just buy it and flip it to a higher seller. There are certain steps to this art and I am going to outline these below:
First step in Flip and Grow Rich
Chances are property is priced much lower than its current market value. This means that the property can be purchased at a relatively low sum and then sold, in very short time, for a usually much higher market price.
Second step in Flip and Grow Rich
Second step in Flip and Grow Rich is knowing and evaluating where to get such properties. From houses that have been foreclosed on by banks or other financial institutions to properties that have been defaulted on to estates that are available in auctions.
Third step in Flip and Grow Rich
Vouching capital to buy a property is the third step in this process. Some folks may think that it initially may need too much down payment. However, the owners of the above described cases are either property owners desperate to let go of the property or financial institutions like banks looking to get back at their potential financial loss.
Fourth step in Flip and Grow Rich
Finally, its important that whatever you have brought, you can sell it quickly as well to maintain your cash flow.
Personally, I would ask you to steer yourself well clear of these things. It takes a seasoned person to get into it and get out of it safely, profitably etc.