short sale flipWhat is a short sale flip? A short sale flip is what happens when an investor purchases a property for less than the true market value from a person who is selling to avoid foreclosure, and then resells it as quickly as possible for what it is actually worth. Some real estate experts recommend the short sale flip as a quick way of making money.
In reality you could actually lose money on a short sale flip if you don’t have sufficient knowledge of how the real estate market works. If you buy a property in a disreputable area you might have a lot of trouble reselling it any time soon. Furthermore, the housing market is in very bad shape at the moment, which is good for people who want to buy a property but not for those who aim to sell one.
You might want to think twice before considering the short sale flip. If you find a nice short sale home in a good area, by all means invest in it provided you get a fixed interest rate on the mortgage. However, if you want to maximize your profit perhaps you’d be better off doing any necessary renovations before renting the property out with the aim of selling it off a few years from now when the housing market is doing a little better.