Normally, when, you are buying a brand new house, fixing it up, so as to make it in accordance with current codes, in addition, to make it even more attractive to buyers. Here is how it works:
A turnkey merchant or business purchases the home.
One or more investors buy a share in or all the stocks in the home.
The merchant or business “fixes up," or rehabilitates, the home to ensure it is present and attractive to buyers. To get more info about property investment in NYC you may visit some reputed websites.
When the land is rehabbed, it is put back on the market for the resale.
The moment a sale is closed, the investor receives their money back and whatever profit was got, based on what share of their investment he or she possessed.
If done correctly, this may be an extremely sound investment plan. You, as the buyer, have made a profit from reversing the house, and you may have as little or as much involvement as you desire.
You can be as involved or uninvolved from the flipping procedure as you need, helping to manage the builders rehabilitating the house or departing the whole process around the turnkey retailer.
Why not simply purchase a home and flip/rent it?
You may be thinking you can just eliminate the middleman, the turnkey merchant or business, and also do all the legwork yourself. When many investors do exactly that and succeed, there are a number of drawbacks.