Types of Flippers

There are three different types of flippers: scouts, dealers and retailers. Scouts simply gather and provide information to investors, finding potential deals and selling the information to them. It is only when they can provide valuable information that they get paid for their efforts. They are also the least paid amongst the three types of flippers. What scouts do to get hold of this information involves handing out flyers on wanted properties, or advertising them in newspapers or over the Internet. They can can also ask friends or relatives. A great amount of legwork is needed to be a scout as this compensates for the least amount of cash or risk you put into the business.

Choosing the type of Flippers

Dealers on the other hand, also provide information on properties to investors, but they differ from scouts in that they sign a purchase contract with the owner before giving the information to investors. This is really the job of a traditional real estate flipper, basing on the definition of the word “flipping.” However, they have two options, either to buy the property themselves and sell it or sell the rights to the contract to an investor. Finally, you have the retailers who they perform the fix and flip type of flipping. They buy property, make some repairs or improvements, then sell it to make a larger profit. These flippers get the highest payout amongst the three, but also shell out the most amount of cash and bear a high risk.