Fix and Flip or Wholesale

[Vin O.]

What are your thoughts with the market shift that we might be seeing soon. Is the smarter play to fix and flip properties or to try and wholesale them to be in and out allot quicker? What is currently working for you in your market? And where is the market you are currently working in?

[Ryan Whitcher]

You can flip in any market 
You can wholesale in any market

With the market shift that might be coming up - as a flipper (and wholesaler for that matter) you have to be that much more accurate with your numbers; ARV, Repairs, Holding costs, and all that. There was more room for error in those numbers a year + ago as you could sometimes count on slight market increase in the ~3 month span during a flip if you went a little over-budget.

A good rule of thumb for getting into a flip in a market where it looks to be shifting is to take the maximum % of shift you think might occur during the span of your flip, and make sure that is your minimum profit margin. That way, in the worst scenario, you would still break even. Ex.) if you think the maximum market drop would be 15% in the next months during your flip (highly unlikely), then make sure you have at least a 15% profit margin after ALL expenses. This is just a step to ensure you are being extra safe

Basically, you can still do both in any market, but you have to be more accurate with your numbers when the market is shifting or nearing a shift. 

Hope that helps!