Frequently Asked Questions
Q. Who is this site for?
A. FlipConnector is a site built for people who want to make money through real estate investment and sales. Whether you buy, sell, hold, rent, rehab, wholesale, or are looking for joint ventures, FlipConnector aims to make your life easier (and more profitable!).
Q. Why did you create FlipConnector.com?
A. We saw that for retail real estate sales there are a myriad of sites that let a user search for properties all across the United States. However, when someone is looking for off-market properties and joint venture opportunities, there aren’t any such options. One is forced to either find the right contacts through networking or scour the internet and wade through countless cookie-cutter splash pages, mailing list forms, and questionable Craigslist ads in order to find a source of deals. Who wants to do that? FlipConnector was created so that it is easier for investors to find the hot deals AND bring sellers the audience they are looking for.
Q. I am a new investor. Where should I start?
A. The FlipConnector team recommends reading some books on real estate investing before getting started so that you have an idea of which strategy is right for you. Do a Google search for your local real estate investors association (REIA) and start attending their meetings. Not only can you learn more about REI, but you may also find a mentor and a team of professionals that you can network with in your area to help you learn and grow. The keys are to never stop learning, be courageous, and take action. Persistence pays off!
Q. What is FlipROI?
A. FlipROI is a term we created as a simple metric to quickly see the potential profit of a deal. Simply put, it is the After Repair Value divided by the sum of the Purchase Price and the Repair Cost, minus 1.
FlipROI = [(ARV) / (PP + RC)] – 1.
As an example, Bill finds a warehouse building that can be purchased for $100,000. It needs $100,000 in repairs to get it into good enough shape to entice the businesses in the local area to purchase it from him. He projects that after he has completed the repairs he could sell the building for $300,000. In this case, the FlipROI for this deal would be:
FlipROI= [($300,000) / ($100,000 + $100,000)] – 1 = 50.00%
This number tells you roughly how much you would expect the return on investment to be if you were to fix and flip the property, without considering holding costs (taxes, utilities, loan payments, etc.), agent fees, closing costs, or any other cost not directly related to purchasing or repairing the property.