This is also a very hot topic!
Surely we all heard, read and watched how this is done, commonly known as “flipping”.
Actuality: The term "flipping" is used by real estate investors to describe "residential re-development". Redevelopment of distressed or abandoned properties or neighborhoods has sometimes been linked to malicious and unscrupulous acts in the post housing bubble era. The term "flipping" is frequently used both as a descriptive term for schemes involving market manipulation and other illegal conduct and as a derogatory term for legal real estate investing strategies that are perceived by some to be unethical or socially destructive.
Whether it is done on individual or T-Rex corporate level, fundamental business model is the same, find distressed property buy cheap – do a facelift and make it look “pretty” and sell for a profit. There are books about it, “flipping for dummies”…
We at the Blue Coral are a strong believer of “ no profit comes from misery of others “ we believe this is just not a good way of doing business. We do not buy foreclosed properties, (no matter how profitable that maybe) do a little surface work to make it look pretty and sell for a profit.
We buy properties from developers, generally as a shell and upgrade everything or we buy properties which are for sale by their rightful owners and repair & upgrade what’s necessary for Vacation Rental market.