Flipping houses in San Diego, California - Kristian and Blake Peter have been real estate investors in hundreds of properties. This reality television show originally aired on The Learning Channel and highlights the challenges associated with any real estate investment. Unexpected problems and construction delays threaten to derail this investment, and cause the contractor, Wes Childers, numerous issues.
Real estate flipping: Profits from flipping real estate come from either buying low and selling high (often in a rapidly rising market), or buying a house that needs repair and fixing it up before reselling it for a profit ("fix and flip"). Under the "fix and flip" scenario, an investor or flipper will purchase a property at a discount price. The discount may be because of:
The property's condition (e.g., the house needs major renovations and/or repairs which the owner either does not want, or cannot afford, to do), or the owner(s) needing to sell a property quickly (e.g., relocation, divorce, pending foreclosure). The investor will then perform necessary renovations and repairs, and attempt to make a profit by selling the house quickly at a higher price. The "fix and flip" scenario is profitable to investors because The average homebuyer lacks the time and funds to repairs and renovations, so they look for a property that is ready to move into. Also, most traditional mortgage lenders require the home to be habitable with no significant repairs.
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