Micro-flipping is a great way to create wealth investing in real estate.
Micro Flipping Defined
It might seem complicated to micro-flip real estate, as it is a relatively new concept compared to traditional fix-and-flip that most house flippers are familiar with. It’s not difficult or complicated. Although it sounds sophisticated and fancy, the term is very simple to understand and much easier to use.
What is it? It’s real-estate wholesaling with technology and data. This is not the fix-and-flip scenario often associated with house flipping.
This is a short-term investment strategy in real estate where an investor searches for affordable and viable properties online to sell quickly. This is a short-term strategy that does not require any renovations or rehabilitation.
What is Micro Flipping?
Micro flipping, as we’ve already said, is similar to wholesaling or other real estate contract flipping techniques with some notable differences. This method is typically similar to wholesaling, but it has a different approach to each step.
Finding the right property, just like in any other real estate transaction is the first step toward becoming a successful micro-flipper. Micro flippers should not settle for any property, unlike other methods. Because the margin of return on investment for a micro flip is much smaller than a full-on fix and flip deal, the house must be less than its market value.
Technology is key here. The difference between success and failure is determined by the tools you have.
Is Micro-flipping for you?
Micro-flipping can be a great way to get new investors into the industry, especially tech-savvy. But just because everyone has access to the internet and a computer, it doesn’t necessarily mean that micro-flipping is easy for them. This line of business requires a certain kind of attitude and aptitude. It is also difficult to find promising properties in the data.
There are many other ways to get into real estate, including house flipping, wholesaling, and renting out residential properties (both short-term and long-term). It is up to you to choose the one that best suits your financial goals.