There’s Real Power in Real Estate Flipping, Veteran Investor Michael Candelario says
No matter where you live, it isn’t hard to find homes in need of some TLC. These buildings have fallen on hard times as owners have likely neglected necessary repairs and overlooked other flaws. There are two common fates for buildings like this: demolition or renovation. Michael Candelario is a real estate investor who prefers the latter route and has worked hard to save countless homes from the wrecking ball. Sometimes called “flips,” these are homes on the market that would have otherwise sat vacant until finally succumbing to major damages. Threats posed by Mother Nature to vacant homes can include water damage, structural integrity issues, mold, rot and insect infestation. A flipper, says Michael Candelario, is a real estate investor who puts an end to deterioration and turns a home — and even entire neighborhoods — around.
Real estate investing in the form of flipped properties is a hot topic. You can watch it unfold on television via programs like “Flip or Flop” on HGTV. It’s also likely that you’ve heard friends or family contemplating the endeavor themselves. You’ll need cash on hand to purchase the property, says Michael Candelario, but it is typically undervalued due to lackluster condition. This makes it’s more affordable than buying a primary home to reside in. Once inspections and closing have been completed, the new owners are able to devise a rehabilitation plan that’s economical and able to provide a safe and sound home in the end.
Recent media reports show that this sector of real estate remains hot and the coronavirus pandemic has done little to slow these types of real estate investments. Figures from Attom Data Solutions show “53,621 single-family homes and condos were flipped between April and June,” of 2020, according to mortgage and lending firm Scotsman Guide Media. Buying homes, rehabbing them and selling for a profit is what’s at the heart of flipping and the article says that this remains a lucrative venture. “Returns on investment also grew, with flippers realizing a 41.3 percent return compared to their original acquisition price,” according to the article, which adds that the return is up from 38.9 percent in early 2019.
This form of real estate investing can be personally satisfying, says Michael Candelario. Blighted neighborhoods will often see a slow yet steady transformation once the first “flipped” home hits the market. This is because other flippers see the promise and the profit. These efforts by numerous real estate investors are largely responsible for making entire areas a desirable place to live and Mr. Candelario believes that is a good thing indeed.