We buy an apartment on paper at $500,000. We deposit
10% when signing and another 10% in 90 days for
a total expense of $100,000.
The project is completed in 2 years and the apartment
is worth $600,000 (realistic and safe increase in
comparison with the previous years’ developments).
In this case we have a $100,000 profit, equivalent
to a 100% increase on the initial investment value.
If for any reason, we decide not to resell it, we
will have in 2007/2008 an apartment at a discounted
price of 2004. We can then decide to keep it for
personal use or place it on the market as an income
property.
In any event the real deal, and primary objective
is to come out of the transaction before the construction
is achieved.
This is what we call a flip investment.
DEFINING FLIP INVESTMENT
IN 1 SENTENCE:
Domus Realty’s Flip Investment Operations combine
the advantages and dynamics of a financial operation with
the safety and peace of mind of a Real Estate deal.
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All information
furnished regarding property for sale, rental or financing is from
sources deemed reliable, but no warranty or representation is made
as to the accuracy thereof and same is submitted subject to errors,
omissions, change of price, rental or other conditions, prior sale,
lease or financing or withdrawal without notice. All square footage
and dimensions are approximate. For exact dimensions, you must hire
your own architect or engineer. powered by
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