Home flippers are a well-known, distinct group of real estate professionals that do business throughout the country. They find unwanted or cheap property, purchase it, and give it a major overhaul. Once this is complete, they are able to sell the house for a profit. This is a solid business model for those who are experienced in rehabbing houses, and can also be beneficial for real estate investors who use this model.
This is just one perk for doing business with home flippers, though. The main benefit is seen by the communities where home flippers conduct business. In some cities, there have been a high number of foreclosures and areas where home owners are struggling financially. These areas are in severe decay, and housing prices are falling drastically for current owners in the area. Also, with so many foreclosures, the communities themselves are producing less tax revenue. This means that important updates that need to be made are no longer within the budget in some city governments.
When home flippers buy a house, it is then rehabbed. Transforming ugly houses to chique affordable homes is great for the neighborhood. It presents a picturesque setting, instead of empty houses with “foreclosed” signs posted on the door.
But there is much more to it. By rehabbing these homes and making them desirable for potential buyers, neighborhoods can be saved. Residents buy these houses and the area can spring to life again. More residents means more tax revenue, so the city can add sidewalks, keep the roads clean and add that park the kids have been wanting. This process can help areas that are still hurting from the economic situation.
Changing the culture of these run-down neighborhoods is important. Plus, by doing this, there is no need for any government assistance in terms of adding new taxes or programs to assist these areas. This avoids any new burdens on current taxpayers. The economy slowly is gaining traction, but one bad quarter and all of the progress that was made will be lost. This is also true for the real estate market. Flipping homes is one tactic that can naturally help areas recover.
While being profitable is important for every business, the work that home flippers do is beneficial to many. Neighborhoods can reignite, and families can find quality, affordable homes to live in while the economy starts to recover. By utilizing home flippers, the housing market can recover in a smart way that will not only help communities, but will avoid new costs in the future.
Kamiel Moore writes for HomeVestors, America’s #1 home buyer. If you have a real estate needs contact us today!
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