MICRO-FLIPPING

Written By Jennifer Wilson

We have all heard, or most of us, as flipping real estate. I have previously discussed this in an earlier blog. But have you ever heard of micro-flipping? You might have and not even been aware there was a term for it. An easy definition for micro-flipping is a short term real estate investment where a property is bought that is in need of renovations but is resold quickly for profit without any renovations completed. It is more of a volume over profit strategy. The profit margin is generally smaller. Sometimes minor upgrades are done like paint or new carpet and nothing else.

Micro-flippers look for undervalued properties that require little to no work. It is low-risk especially if you understand your current market and how to have buyers lined up. The positives of micro-flipping is the speed and ease of the process. Most of the work is done behind a computer. A good example of a Micro-flipper is an ibuyer such as Opendoor, Zillow, etc.

You do need some knowledge of the market in order to be successful. You do need to figure out how to generate opportunities to purchase whether that is through the MLS, auctions, probates, etc. Micro-flipping has become pretty big in the past few years and so the market is a tad saturated with these types of investors in more of the larger suburb cities. In order to be profitable, you need to be able to obtain a larger quantity of properties. If you are looking for passive income, micro-flipping may be for you.

 

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