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3 Types of Flippers

By definition, flipping a property involves buying it and then selling it for a quick profit. Usually, they buy properties at much lesser than the ‘retail’ rate. Best of all: one does not need a license to flip properties nor do they need to spend a lot of time either.

That said, here are 3 types of flippers:

#1: Scout

This flipper, as the name suggests, gathers information while also keeping potential investors of these deals. Most people get started in the real estate business by being a scout since this does not require any prior knowledge or cash in order to find distressed properties. Of course, for the information that he provides, he will charge a fee and that amount will depend on the property price and price potential too.

#2: Dealer

Much like the Scout, the Dealer also looks for properties for other investors. In this case however, he located a property that is a good bargain and signs a purchase contract with the owner. Since he is investing his own money for this, unlike a Scout, there is a considerable amount of risk that involves more than just information. After this, he has two options: sell the contract to an investor or sell the property himself. Full-time dealers can make at least $15000 a month while part-time dealers make about $3000 for that same duration.

#3: Retailer

This type of Scout usually finds and buys properties, thanks to the services rendered by a Scout, real estate agent or a Dealer. Unlike the other flippers, the retailer puts up most of the money and stands to gain the most profit from the deal which will be made with the owner-occupant. However, while Retailers will take months to realize their profit, Scouts and Dealers will make it in a matter of days or weeks.