Friday, November 22, 2019

The FlipSafe Program; A Risk Management Tool You Should Be Using!

This property is included in the FlipSafe Program.

It's a rare privilege to have opportunities to crush the risk like RECFH Real Estate Entrepreneurs can! We especially like to use the FlipSafe strategy in markets that are not in what we call "high-profit rental markets."

What is a "High-Profit Rental Market?"

We define a high-profit rental market as a local real estate market that is experiencing stable or rising appreciation rates. In fact, for the most part, we only buy and hold properties in High-Profit Rental Markets. We buy and flip properties in local real estate markets currently experiencing decreasing appreciation, etc (non-high-profit rental markets).  Which brings us to our next question;

What is the FlipSafe Program?


The FlipSafe Program is an exit strategy we use when properties we are flipping don't sell within the time frame planned by the Real Estate Entrepreneur.

For this reason, we like to buy and flip properties that can be rented with positive or neutral cash flow, if necessary.

Here's how it works;

Step One:

The Real Estate Entrepreneur structures a buy and flip real estate cash flow project. The Real Estate Entrepreneur makes sure to keep a RECFH Mortgage-Ready Landlord in cue to purchase/refinance the property in case it does not sell within the time frame projected [i.e 120 days].

Step Two:

The property is rehabbed/built and placed on the market to be sold to a retail home buyer.

Step Three: (Only If Necessary]

If the property does not sell in the designated time period. The RECFH Mortgage-Ready Landlord will come in to purchase/refinance the property with conventional financing, thereby extracting the capital utilized which is now freed up to redeploy into the next cash flow project.

As always, the project is structured with optimal risk and profit potential for ALL parties involved. This is one of the many major benefits of being a member of the Real Estate Cash Flow Hunters.


Safe Hunting!

No comments:

Post a Comment