Get Rich Quick, Make Money Flipping Real Estate Properties

One of the most successful creative real estate investing techniques is flipping real estate properties. Flipping or wholesaling is a process by which a person contracts a deal with a property owner, usually a property in need of repairs, and assigns the deal or resells the property to another investor, usually a rehabber, at a considerable profit to both the wholesaler and the buyer. Here is an example

Andrew came across a property valued at $130,000, which needed repairs worth around $20,000. He offers the owner a discounted price, on account of the repairs needed, of $90,000. He gets them to sign a contract with ¡°and/or assign¡± written after his name in the contract. He then finds a rehabber willing to pay $100,000 and quickly assigns the contract to the rehabber thereby making a profit of $10,000. The rehabber gets a property with almost $10,000 equity and if he were careful he could get the repairs done at a lesser cost as well as perhaps resell the property after repairs for say $140,000!

Wholesalers can also buy the property and quickly resell it to a rehabber at a profit. This method gives them more legal protection but is risky in case a buyer cannot be found on time. So wholesalers have to get the finances ready before considering to make money flipping real estate.

Dwayne comes across a property with after repair value of $300,000 needing repairs worth $40,000. He buys the property at a discounted price of $240,000. The seller is usually motivated on account of the extensive repairs as well as perhaps a financial crisis. Dwayne then resells the house after undertaking repairs which he completed at a cost of $30,000 since he contracted the work himself for $310,000. He paid $240,000 for the house, repairs cost him $30,000, total cost were $270,000, thereby a profit of $40,000 not a bad deal is it? He did not assign the property but resold it within 180 days, time taken for the repairs!

As such investors specializing in flipping property or flipping homes are not required to have a license by the states. It is entirely legal to make money flipping real estate as long as mortgage fraud and deception such as inflating the property value by bribing appraisers, or not actually carrying out repairs that are needed but showing that they have been done etc.

Flipping real estate requires that the wholesaler has recruited the services of bird dogs to help them find appropriate property as well as have a steady supply of interested investors. Wholesalers are not confined to flipping homes in need of repairs alone; they are also involved in flipping properties such as commercial multi-tenant buildings or multi-tenant residential properties.

An investor can average between $5000 and $10,000 per deal flipping homes, it will not be unusual to find these wholesalers make a minimum of 3 deals per month, so making money flipping real estate is guaranteed as long as you are experienced, not committing a fraud, have taken adequate precautionary measures against litigations in case the deal falls through. Usually investors flipping properties take a precautionary step such as a ¡°subject to inspection and approval by partner¡± clause, which can get them out of a situation such as having contracted a property but being unable to find an appropriate buyer.

Flipping homes as such is not illegal it is entirely legal, finding a buyer who can pay you more than what you paid is not illegal but just good business tactics. Maliciously committing a fraud cheating homeowners by inflating property prices, not repairing the property sufficiently where by the home owner finds out he cannot afford the repairs as he has already paid an exaggerated price for the property, thus defaulting payments eventually leading to a foreclosure where the financial institutions find they have a property worth much less than what they had loaned!

Investors specializing in flipping property, who make money flipping real estate need to have a consistent supply of motivated sellers who can be found in foreclosure auctions, or by using advertisements, birddogs etc. They have to make sure that they are not committing any fraud and must make it clear to the seller that they are acting on their own behalf and interest. It is no crime to resell something you buy at a rate higher than you had purchased it for.

Many are the investors who have made a fortune by flipping homes and by flipping properties other than homes. Skillfully, with experienced and knowledgeable teammates such as like-minded attorneys, they have unraveled all secrets of making money flipping real estate properties.