In a broad sense, you are flipping property if you never hold it for the production of income or for future appreciation.
Property flipping has many flavors. Once you have a property under contract you can:
1. Assign your contract to another investor for an assignment fee (a contract flip).
2. If the property needs work, but you don't want to or can't do the work, sell the property to another investor. You discount the sale price to leave enough profit on the table to attract a buyer (a wholesale flip).
3. Sell the property outright for FMV to a retail buyer (a retail flip).
its the same thing. Wholesale sounds more professional that flip does.
[addsig]
Hey,
"Word, words, words..."
"The question is whether you can make words mean so many things..."
They are just words; don't get hung up on them. You can call yourself whatever you want.
For me:
Birddog/Scout--person who finds property and owner, but does not enter in to contract
Flipper--person who enters in to contract, but does not take ownership
Wholesaler--person who takes ownership, but does not do repairs
Retailer/Rehabber--person who takes ownership, does repairs, sells/rents to retail
In a broad sense, you are flipping property if you never hold it for the production of income or for future appreciation.
Property flipping has many flavors. Once you have a property under contract you can:
1. Assign your contract to another investor for an assignment fee (a contract flip).
2. If the property needs work, but you don't want to or can't do the work, sell the property to another investor. You discount the sale price to leave enough profit on the table to attract a buyer (a wholesale flip).
3. Sell the property outright for FMV to a retail buyer (a retail flip).