What is the Difference between........

A Rehabber and a Fix & Flipper?

I'm going to give you my take on the difference of the two and then invite you to comment on it below in the comments section. 

A Rehabber is an investor that looks for the deepest discounts on properties because they need the most repairs. The investors will take a house that is in desparate need of a complete remodel. Walls that need to be removed, almost entirely new plumbing, electrical and even HVAC work done. Other things would include new roofing and foundation repair. 

These investors spend a lot of money for their return and usually will usually take weeks, if not months to complete. You've all seen the shows on the weekends(that aren't playing as much anymore) where these type of investors will do what they do best(or try to anyways) to make a large profit. These shows are called 'Flip this House' and while they are essentially flipping them for a profit(again, they try to anyways) it's not considered a flip in my book. They are called complete remodels and the investors are not called 'Flippers' but rather 'Remodlers'. 

A Fix & Flipper is an investor who also wants a deep discount but can work with thinner numbers. This can be done because this investor does NOT completely remodel the propety. They are more concerned with putting 'Lipstick on a Pig' and calling it good. There's nothing wrong with that. They willl enter a property and instead of taking out walls and completely re-doing the plubming, they simply put a fresh coat of paint and clean the carpets, worse case, replace the carpet. 

They won't replace the roofing, electrical system or even add on anything to the house in terms of additional rooms for square footage. Their goal is to be in and out. I've got a freind that fits this bill. He literally will not spend more than one day at any particular property. He shows up with a pick up truck and no trailer. If he cannot complete the job with the items and tools that fit in the bed of his pick up truck then he doesn't consider it a Fix & Flip. 

His main concern is coming into the house with at most a fresh coat of paint on the exterior(which he'll do himself in a matter of a few hours), replace electrical outlet covers, clean the carpet and paint any wall in the house that needs painted the same 'ol white paint. His motto is 'If it aint broke, don't fix it' so he's not remodling anything, he's just 'Fixing' it and 'Flipping' it. 

Now, you might say they're one in the same and sure, I get that, however, there is a definitive line between the two and if you're a wholesaler, you should know which one your buyer is. 

In the next blog post I'll discuss why having a different buyers list for each is important and how if you're a Sub2 wholesaler, keeping the separate is important. Also if you're interested in learning more tricks and tips to help you succeed in Sub2 investing, visit Subject2.com and sign up for the free newsletter.