REAL ESTATE INVESTOR: QUICK FLIP vs. REHABBING
The real estate world can be confusing. There are many terms to remember and many can be similar in meaning. Especially, “Quick Flip” and “Rehabbing.” Don’t worry, you're not alone. There’s a difference between these two terms.
Quick Flipping (Wholesaling):
Quick Flipping/Wholesaling is the quickest and easiest way to make cash as a real estate investor from the get-go. There are many ways to get your foot-in-the-door in the real estate investing world. I always recommend people to start with quick flipping/ wholesaling first.
Let’s break down the meaning of quick flipping/wholesaling:
-When you wholesale/quick flip real estate, you're the middle piece between a motivated seller and a cash buyer
-You find a cash buyer willing to pay more than the price you agreed to pay to the motivated seller
-The spread between the two prices is your profit as the wholesaler
Rehabbing is closely related to wholesaling, but there is a difference between them. Rehabbing is for those that like to be more hands on. Rehabbing is also referred to as “Flipping.” I know, the word “flipping” seems to be used for everything. Flipping is a generic term for either quick flipping, wholesaling or rehabbing.
Let’s break down rehabbing:
-Rehabber finds a motivated seller
-Rehabber purchases the house and then rehabs it (new carpet, paint, etc)
-Once finished, the rehabber sells the property and is paid from the proceeds at the time of closing
Starting your journey in real estate investing comes with a lot of learning. If there are any other terms you would like to get some clarification on let us know!
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