Flip

From CaseyPedia

Casey demonstrating the flip part of his fix-n-flip method

A flip is a kind of a short-term real estate investment that involves purchasing a property, holding it for a short period of time and then selling it for a profit. Due to the costs of acquiring and selling real estate, flipping is usually only possible during strong rising markets. Even then, a significant profit margin is only possible when leverage is used.

A variation on flipping is the fix 'n flip in which the purchaser performs some (usually minor) modifications to the property in order to increase its market value. Even fix 'n flip usually does not work well except in rising markets due to the costs involved in carrying the property during the improvement processand of the improvements themselves.

In any market, successful flipping requires that the flipper have a good knowledge of the current market and ability to identify low-priced properties with good short-term appreciation potential. Fix 'n flip also requires good knowledge of home improvements and the related costs.

Casey Serin has admitted that he had no understanding of the costs of improving his properties, no knowledge of how to go about it, and no plan for making money.^[1]

Serial mortgage fraudster Serin prefers to think of himself as an "investor", rather than a flipper: ""I don't like the word flipping because it makes it sound like you're doing something illegal."^[2]

[edit] References

1. ↑ Casey explains why he's facing foreclosure
2. ↑ My Life Is an Open Blog, Voice of San Diego, September 22nd 2006