Flip Dictionary

The process of safely removing hazardous materials from a home including asbestos, lead based paint, and mold.

A fibrous material used in many building materials prior to the 1980s that can cause cancer.  Its removal from homes being renovated requires a special process by trained personnel.

The act of transferring the buyer's rights to another buyer in a real estate transaction.  It is a process/strategy typically used by wholesalers.

A person that locates properties for sale, or potentially for sale, on behalf of real estate investors. They are often paid a finder's fee if the investor ends up buying the property.

A home addition or expansion involving the extension of one or more exterior walls further into the lot.

Occupants of distressed and foreclosed properties often do not have the financial means to move out of the property.  Providing them with funds (the "cash") to be able to vacate the premises and give the buyer possession (the "keys") is often the best solution for everyone.

Shortened version of demolition, which in house flipping is the process of removing the old items (kitchen cabinets, bathroom fixtures, flooring, sheet rock, etc.).

A process used by some wholesalers where the wholesaler closes on the purchase of a property and then immediately has a closing to sell the property to the end buyer (investor) for a small profit.  This avoids the wholesaler having to fund the purchase.

A home renovation that involves removing the wall materials (sheet rock, plaster, etc) to expose the underlying studs used in the framing.

A kitchen island with one or more sides having a large overhang (18" or more) providing enough space for chairs (and knees) similar to a table.

The purchase and subsequent sale of a property without it being occupied in the interim. The property is typically renovated during the ownership period with the intent of increasing its value, although wholesale flips can take place without any work being performed on the house.

Acronym of For Sale By Owner, pronounced fizz-bo.

The total replacement of something.  For example, replacing all components flooring, and walls of a bathroom.

A type of short-term loan from a non-traditional lender often used by fix-and-flip investors.  These loans typically have less documentation requirements, but have much higher than average interest rates.

These are the costs associated with the ownership of the property while it is being flipped (not including the renovation costs).  These typically consist of taxes, insurance, interest, and utilities.

Acronym for the Heating Ventilation and Air Conditioning system in a home.

A common room or hearth room in colonial days. Today it is typically a multi-purpose room adjacent to the kitchen containing a fireplace.

Homes built prior to 1978 often used lead-based paint, which is known to be poisonous. It requires special handling and removal by trained personnel.

A failed attempt at making a property more attractive. Despite trying to make it beautiful, it's still and ugly house.

An acronym for a Laminated Veneer Lumber type of beam, which is a high-strength engineered wood product used to provide major support in construction projects. LVL beams are typically lower in cost but much larger in size than a steel beam with the same load rating.