Notice though in that last paragraph I didn’t say we are “flipping houses?”  That is because that phrase has become the pariah of the real estate investment game.  While those of us that do it professionally know what is going on, many end buyers hate us now.  They see us as buying homes they could have had for cheap and making a big profit. 

Flipping isn’t a "job".  They aren’t "professionals". They’re *opportunists* who seek to milk a get-rich-quick scheme.  Most flippers tend to effect purely cosmetic repairs on a house (granite countertops) to make it move fast, while purposefully hiding deeper problems from the unsuspecting buyer.  So, add "scam artist" to the list as well.
Comment from Redfin Forums

While I am sure that may be the case in some situations, I guarantee that a lot of houses also wouldn’t make it into the hands of home owners if rehabbers didn’t work on them first.  The first reason is that we can put up with the bank’s short sale lunacy and pay cash.  Real estate flippers gets deals done and gets homes out of the bank’s hands.  Second is that professional rehabbers put houses back together again.

To be honest, I haven’t looked at a project house yet that was move in ready.  I know some people are flipping homes like that, but it isn’t the norm.  The house just down the street is a good example.  Investors bought it at auction (aka all cash), spruced it up a little bit and then sold it in three weeks, for a profit I would assume. 

BUT, if they hadn’t had ~$300,000 in cash on hand to buy it, that house would have wound up in the hands of the bank and probably still be sitting vacant.  Instead I have a new neighbor that I really need to go say hi to.

So real estate flipping has become a negative term and us real estate investors that do it are not smiled upon as brightly as before.  That is ok, we will keep doing it and making a profit, but if anyone asks I rehab properties, not flip them!

If you would like to know more about how to make money rehabbing properties, contact me today!

Photo courtesy of Andy De Maesschalck