This is a modest concept in which the financier purchases, rehabilitates, and then resells a property at a profit. This is also known as “spinning” a house.
This process usually occurs slightly, since the investor rests in his or her own house, occasionally in a place where spinning doesn’t make sense, and uses the Internet to find and participate in occasions. You can also read freedom mentor review to get more details about real estate investing.
The goal here is to make the process of participating in real estate as relaxed as possible, so all the investor has to do is flip a change or “turn the key.”
Usually, then, you’re buying a single-family house, fixing it up, in order to bring it in line with existing codes as well as make it more attractive to buyers. Here’s how it works:
- A turnkey vendor or company buying the property.
- One or more investors purchase a share in or all of the shares in the home.
- The seller or company “fixes up,” or restores, the assets to make it current and attractive to buyers.
- Once the property is rehabbed, it’s put back on the bazaar for resale.
- As soon as a trade is closed, the financier gets his or her money back plus whatever income was made, according to what part of the investment he or she owned.
If done properly, this can be a very sound investment strategy.