Home Flipping on Rise Again — and What It Means for Cleanup Companies

Home Flipping is on the Rise Again

An editorial on MSN.com reported home flipping is on the rise, and the magic ingredient is foreclosures.

What exactly is home flipping?

In its basic form, home flipping is when an investor purchases a home, rehabs it, and sells it for a profit, generally within 180 days or less. When the bottom fell out of the real estate market, flipping “flopped,” to say the least; but flipping is making a comeback.

As Scot Meyer of SwitchYard Media reported in MSN’s Top 10 Markets for Foreclosure Flipping, “These days, as real-estate prices fall and fall, and more homeowners face foreclosure, those fire-sale-priced foreclosure properties have created new, lucrative opportunities for flippers.” See the top 10 markets for foreclosure flipping below.

Top 10 Markets for Foreclosure Flipping

1. Adams County, Colorado (northeast of Denver)

2. Providence County, Rhode Island

3. Dallas County, Texas

4. Guilford County, North Carolina

5. Allen County, Indiana

6. Henry County, Georgia

7. Duval County, Florida

8. Jackson County, Missouri

9. Lucas County, Ohio

10. Orange County, California

What Flipping Means for Foreclosure Cleanup and Real Estate Maintenance Companies

What flipping can mean for foreclosure cleanup and smaller companies that provide real estate cleanup, lawn maintenance and repair services is more work. Flipping investors tend to go into homes and clean out and gut them pretty quickly. Once they rehab them and pretty them up, they put them right back on the market in effort to sell them fast. The longer they hold onto homes, the more it eats at their profits. So they need solid work, from skilled laborers, at a fair price, fast.

If you are a small company working the REO cleanup arena, reach out to your local real estate investors for work.

Bid to Win

Reach out to investors and be prepared to bid to win, which means try to come in lower — but without sacrificing your own profit margins. Savvy investors know their numbers and will be looking for bids that will keep them firmly within their profit margins, but bidding to win does NOT mean sacrificing your bottom line. It means you may have to do some of the work yourself, versus outsourcing it. But in the end, it can be worth it. Why? Because flippers tend to use the same smaller companies over and over again when they find good ones.

Remember, flipping had fallen by the wayside for a bit, so there’s a lot of new skin in the game. (i.e., new investors, new realtors who work with investors, new cleanup and maintenance companies, etc.). As things are finally on the upswing again, you can position your service to be the go-to company for cleanout work, debris hauling, lawn maintenance work, painting, handyman jobs, and more with these new investors. As they network, they can refer you to their colleagues.

Reach Out to Investors and Landlords

As a company working the foreclosure cleaning and maintenance market, plan to reach out to your local real estate investors, real estate agents who work with investors, and landlords for cleanup and maintenance work. See a previous editorial on the blog about how to successfully work with real estate investors. See How to Market Your REO Trash Out Business & Foreclosure Clean Up Business to Real Estate Investors at http://www.foreclosure-cleanup-blog.com/?p=74.   Also, see Landlords Can Be Fertile Ground at http://foreclosure-cleanup-industry.com/articles/landlords.htm.   (See very bottom of page for client-getting resources.)

Good luck to you! Until next time …

Cassandra Black



Source: http://realestate.msn.com/slideshow.aspx?cp-documentid=28155202#9


Related Articles:

Landlords Can Be Fertile Ground For Real Estate and Foreclosure Cleanup Businesses, http://foreclosure-cleanup-industry.com/articles/landlords.htm


How to Market Your REO Trash Out Business & Foreclosure Clean Up Business to Real Estate Investors, http://www.foreclosure-cleanup-blog.com/?p=74


How to Get New Clients: An Easy Way to Get New Foreclosure Cleaning and REO Cleanup Business, http://www.foreclosure-cleanup-blog.com/?p=7292


How to Get Clients for Your Foreclosure Cleanup & REO Trash Out Business from Your County Commissioners, http://www.foreclosure-cleanup-blog.com/?p=281


How to Market Your REO Trash Out Business Using an Old Fashioned Tactic, http://www.foreclosure-cleanup-blog.com/?p=160


More Resources for Locating Landlords and Investors


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Landlord Discussion Boards and Forums:









Landlord Associations and Real Estate Investment Clubs (search by state!):





Apartment Associations (search by state):


California Apartment Association:


About Foreclosure Cleanup, LLC

Welcome to Foreclosure Cleanup, LLC, and thank you for visiting us online. Our company provides outsourcing, industry tools, and consulting to foreclosure cleanup and real estate industry contractors.

Foreclosure cleaning businesses and real estate contracting companies specialize in clearing out and cleaning up homes that have been foreclosed upon. These companies consist of trash out businesses, lawn maintenance companies, locksmiths, repair and handyman businesses, painters, plumbers, electricians, pressure washing and gutter cleaning companies, carpet installers, inspectors, cleaning companies, haulers, and the like.

Our company educates new businesses about specifically the contracting industry as it relates to foreclosure cleanup. We provide the foreclosure cleanup and real estate contracting tools needed to get our REO-riddled industry back on its feet through foreclosure cleanup and real estate contracting services.

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