- October 6, 2020
- Posted by: Editor
- Category: Advice, Investment, Strategy
Real estate investors looking to stay ahead and capitalize on new technologies and real estate investment strategies are turning to this profitable trend.
Micro flipping in real estate is an exciting venture for the right investor. With the rise of real estate technology, buying investment property can be done in entirely new ways, making the jobs of real estate investors both easier and more lucrative.
Micro flipping is essentially the online wholesaling of real estate. While this concept might be confusing to investors who are used to making slow-moving, traditional deals in person, micro flipping real estate is fast, virtual, and only requires a few hours of energy.
The players in this space are called eBuyers. These are companies that purchase homes online either at or slightly below market value. The types of homes eBuyers target are homes in need of little-to-no renovation, meaning that they can quickly sell them for a small profit margin without putting in any physical work. The timeline for these transactions is typically about a few days to a week.
The reason eBuyers are able to buy and sell homes so quickly is because they have access to important real estate data. By knowing who is ready to buy and sell and having the means to connect with those people, individual real estate investors can also effectively succeed in micro flipping.
The Process of Getting Started in Micro Flipping
Micro flipping requires a very small-time frame. This means an investor must already have potential buyers lined up before having possession of a property.
While this might seem intimidating, it is not difficult to find people who are looking to buy a home. Much the way real estate agents might search for home buyers, investors involved in micro flipping can find individuals to sell to if they have access to property data.
Once a real estate investor has buyers who are ready to make a purchase, they must find a suitable property to make a sale. This is where finding sellers using homeowner’s data comes into play.
The key is to use homeowner data to find motivated sellers. These are individuals who might be on the verge of foreclosure or need to move quickly. By accessing information about the individuals who own homes, you can pinpoint sellers who would be most willing to sell quickly for less than market value. This kind of deal will leave you with enough room for a profit margin when you sell.
Closing the Deal
In micro flipping, the emphasis is on research and real estate data. This involves conducting real estate market analysis and possessing an understanding of the values of individual properties, as well as the motivations of people looking to buy and sell their homes.
Deals in micro flipping close typically within less than a week, with the real estate investor only pouring a few hours of energy into the transactions. Everything is done remotely on an extremely tight turnaround. The fast transactions are a direct result of prior planning, and they are necessary in order for the investor to make a profit.
Benefit of Micro Flipping
The greatest draw for real estate investors interested in micro flipping is the return on investment. While a good fix and flip might bring you a good ROI, it could take a year to make that money.
Micro flipping only requires a few hours of work and usually no more than a week’s time, and investors can expect to make a lot of money per transaction. It is easy to see how investors who have mastered this strategy have made huge profits. Successfully pulling off just one micro flip per month has the potential to replace an investor’s day job, and micro flipping full time can be extremely lucrative.
Buying investment property is no longer limited to real estate investors who want to rent or fix and flip. Thanks to online data and technology, real estate investing does not necessarily have to include tying up money for long periods of time, performing renovations, or managing a rental property.