3 Killer Fix and Flip Exit Strategies

Thanks to the rise of house flipping shows, more and more Americans are looking into house flipping than ever before!

Flipping a house it a lot of hard work, but with a bit of luck, and a lot of planning you can start making more money flipping houses than ever.

Having a Fix and flip exit strategy in place for your flip is a necessity to make money on your flip.

“Exit Strategy means how you plan to get money out of your real estate investment. Before you start flipping your home you should plan to get the most ROI for your real estate investment. Having a Flip Strategy is key in order to make the most for your property.” -Loren Howard, Prime Plus Mortgages, Hard Money Lender Arizona.

 In order to make the highest return on investment, house flippers need to first determine their after repair value. With their ARV

Exit Strategy 1 The Classic Fix and Flip

The Classic fix and flip is what most people think house flipping is. A fix and flip means purchasing that property, making repairs, and then selling or ‘flipping’ a home for a profit.

We found the following are always great for a boost of ROI on any property.

●     New Windows

●     Kitchen Rehab (small or large)

●     New Paint (Indoor and Outdoor)

●     New Roof

When you do the classic flip, you need to make sure that you have a great property that has a high selling potential.

While picking the right repairs, and the right property to flip can be tricky, it is a great way to make money quickly, and not have to worry about the long-term maintenance of a property or tenants.

With the classic fix and flip method, the reward is high but is risky. In order to make the most of this strategy, you need to do your research, have the right tools, and make the right repairs.

With the classic fix and flip approach you also are looking at a one time sale, while our other two strategies can make you more money with passive income!

If the market is slow, or you are having a hard time moving your flip, leasing and renting your property are a great way to start making money off your flip.

  

Exit Strategy 2 Leasing Your Flip

Leasing your flip is a great way to slowly move your property to a buyer that isn’t ready to purchase yet.

You can get clients to agree to your asking price, without having to haggle with them or find new buyers.

By Leasing your flip, you open up more ways to move your flip and start making money on your flip as soon as possible. Not only does it guarantee that you will be making a monthly income, but can keep an interested buyer in your property, so when you do go to list they will be the first to make an offer.

You draft an agreement between you and the buyer where the buyer agrees to make a down payment.

Most hard money lenders will happily help you refinance the loan you have on your flip so you can make more money with a leasing option for your flip

Exit Strategy 3 Renting Your Flip

When renting your flip, you can make a steady passive income, and always sell your flip when the market is right.

The Market for rentals is higher than ever, and by upgrading your flip to have sought after features you can ensure a high monthly income.

With high student loan debt, fewer millennials are buying homes, and having an affordable rental option is always in high demand.

Finding Good Tenants can be hard, but with due diligence, and possibly a rental management company you can make more money, with multiple tenants, and start working on building a system of high paying rentals.

Rentals are here to stay, so renting your flips, and to families, or roommates is a great way to make money on your flip, or even wait for better market conditions for selling your flip.

SUMMARY

Making money by fixing and flipping properties has never been easier than it is now. With more finance options and types of properties and investment strategies, it’s easy to make money as long as you do your homework.

Depending on your market, you may find that you can make money with your flip with any of these exit strategies. Make sure you know your flips after repair value in order to make the most of your property with one of these flip strategies.

1. The Classic Fix and Flip: Buy, repair, and sell the property for a profit. By making sure you make the right repairs, pick the right property, and have your ROI calculated you can move property and a make a large one time profit.
2. Leasing Your Flip: Depending on your market, leasing your property can work to start making monthly payments on your property before a one time sale to the new tenants. You can make sure to get the full value of a home, and that it is taken care of when you are ready to list.
3. Renting Your Flip: For slower markets, and those looking to make a long time passive income renting your flip is a great way to make more money over time than a one time sale. You can even rent to multiple tenants to make the most for your flip.

What’s Your Favorite Flip Exit Strategy?

BIO:

Catherine Way graduated from Michigan State University with her Bachelor’s of Advertising  with a specialization in Graphic Design. She spends her free time finding new ways to talk to people, through writing, designing, dancing, and more. You can see her newest creations here.