The time it takes to flip a house depends on many factors such as location, condition, and price. We focus primarily on starter homes and move-up homes which tend to sell at a lower price point and sell faster as there is greater demand. Our average turn time from when we acquire the home until it is sold is currently 4.5 months. As a general rule, the more expensive the home, the longer it will take to sell.
While all investments carry some amount of risk, real estate investing is one of the safest and most flexible vehicles in which to invest. When investing your money through us, you are essentially acting like a bank. This means you essentially have the same protections as a bank when they lend money for buying a home. As such, you are the primary or secondary lienholder on the property, depending on the nature of your investment. Because we buy properties at significantly discounted prices, this means you have instant equity when we purchase the property.
We only need your money while we own the property. You are investing in the real estate, not in our company. Only money used to purchase, rehab, hold and sell the property is needed. While we cannot predict how long the total time will be to flip the property, our current average is 4.5 months. To be safe, we ask for a 12 month commitment. We do not hold your money after the house is sold. All of your money is returned to you, plus interest, on the day the property sells.
Buying a flipped house from RE-Invest America has several advantages. All work has been permitted with the city/county to ensure it is done legally and will enhance your property’s value over time. All work has been done by licensed contractors who have been fully vetted and often worked with us successfully on other properties. What you see is what you get. There is no unfinished work, no trying to live in a house that has contractors coming and going and construction dust all over, and no having to deal with multiple contractors. Often flipped homes are located in established neighborhoods where there is no new construction…but your flipped home will certainly look new.
When RE-Invest America makes an offer on a home, we look at many factors such as the condition, the location, the buyer’s situation, the repair estimate and projected time to sell. Often people who sell properties to us are facing pre-foreclosure, tax liens, or have an urgent need to sell quickly. Because we can close in just a few days, we can usually help them. Also, since they do not need a real estate agent when they sell to us, that is a tidy sum of money they save in a transaction with RE-Invest America.
There are studies published regularly that indicate when homeowners try to renovate their own home prior to selling it, they actually lose money on the rehab costs. One big reason is they often renovate to their personal taste or style. At RE-Invest America, we will renovate the home to appeal to 90% of the market using current color palettes and design ideas like sliding barn doors, double vanities, more storage space, and open floor plans…many would exceed the rehab budget of most homeowners. Plus they would need to still live there for the 4-8 weeks with all the nuisance of construction, contractors coming and going, dirt and dust to name a few. We’ll pay you a fair price, plus there are no bank fees, lawyer costs, agent commissions or other surprise expenses.
For many minor improvements or repairs, the do-it-yourself approach is fairly common. Unfortunately, too many people try to do repairs or upgrades that are beyond their ability, and the finished result reflects it. We will factor these repairs into our offer price, either up or down. One thing to be sure to do if doing it yourself, is to check to see if the work needs to be permitted. If the work is unpermitted, we will need to remove the unpermitted (aka: illegal) work, and then repair it. One client had added a room to their home, and it extended across the property line onto the neighbor’s property. The neighbor required the additional room to be removed as a condition of the sale to avoid a lawsuit to have it done afterwards. At RE-Invest America, all of our work is permitted and done by licensed contractors and usually the work is warranted as well.
All of our work is done by licensed contractors and complies with any zoning or other permitting requirements. Depending on the work and the materials used, the warranty/guarantee period will vary. For example, 25 year roof shingles are guaranteed for 25 years by the manufacturer. If the roof leaks, the roofer who installed it will make any repair for a period of time. A hot water heater, dishwasher, A/C unit? The unit itself is guaranteed by the manufacturer. Installation is warranteed. All associated guarantees and warrantees will be provided to the homeowner at closing. It is usually a good idea with any home purchase to also purchase a 3rd party home warranty.
