Trying to make money off of home renovation, also known as flipping, has been around for a while. Some investors are really good at it, and can make a good chunk of money off of it. However, there are also many of those who are not able to successfully flip a house, and end up paying more to renovate it than they make. Flipping is so popular that they have they have even made TV shows with the sole purpose of showing how “professionals” flip a house. Flip Men, Flip This House, and Flip or Flop are just a few of the most popular.
But according to an article posted by the WSJ, Luxury House ‘Flippers’ Get a Lift, Nick Sinatra believes that money can also be found in flipping luxury homes. Sinatra is the owner of American Coastal Properties LLC, a real estate investment firm. ACP’s focus is on acquiring homes in exclusive neighborhoods with little curb appeal. For most homes, ACP spends anywhere from 50% – 100% of the purchase price to flip the home. Most of their homes get a complete renovation, and it pays off. Sinatra just finished flipping a home that he purchased for $850,000 and hopes to sell for $1.43 million.
Maybe this is the start of a new trend in house flipping, maybe not. But one thing is for sure – in order to flip a house and make a profit, it takes a lot of experience and knowledge of every single tiny detail of a home.