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What is FIX and FLIP?

A house "flip" occurs when an investor purchases a home with the intention of reselling it at a greater price a short time later. That "brief time" refers to any property purchased and sold within a 12-month period for many real estate lenders across the country, including my own hard-money lending company. Don't despair if your project takes longer than 12 months to complete; Many lenders are nevertheless willing to provide money for projects or situations that demand a longer term loan.

The Three Categories of Flips

There are 3 types of Flips: Wholesaling, Wholetailing and the best known, fixing and flipping


1. Wholesaling can be accomplished in one of three ways: You can assign the purchase contract to the next seller. Next, you can sell via double escrow or you can purchase and quickly resell without remodeling the property.


2. Purchasing a property, cleaning it up quickly, and then relisting it on the multiple listing service (MLS) to sell to an investor or end user is what wholetailing a property entails.


3. When an investor buys a property, renovates it to increase its value, and then (usually) advertises it on the MLS to sell to an end user, this is known as fixing and flipping.

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