Every investor should have a means to sell properties quickly. You should never enter into a real estate transaction without knowing your exit strategy. Are you going to flip the property to another investor or are you going to fix it up and sell it retail? How much money or labor are you going to put into the property? How long do you expect to hold it? How long do you think it will take to sell? These are important questions you need to answer before you make an offer to purchase a property. When you are getting started, you can sell your first few deals to investors to generate working capital. You should not be greedy, but you can expect to make $2,000 to $5,000 on your first flipping deal. You do not have to own a property to make money from it. You simply need to control the property by putting it under contract. Once you have located a potential deal and secured it with a purchase contract, you can sell your deal to another investor for a profit.
Let's day, to buy a property at price $200,000, and it need $10,000 to renovate the property. In its best condition, the property is worth $220,000. You
negotiate a purchase price of $160,000 and sign a purchase contract with the owner. You find another investor who is willing to pay $180,000 for the property and do the necessary repairs. Thus, you can sell your deal to another investor for $20,000 and walk away with a net profit not investing your own money. The other investor will make a nice profit as well.
The property was bought at a nice discount from its current market value. This discount may vary widely, depending on the property, the neighborhood, the condition of the real estate market, and how many repairs the property needs. Keep in mind that the retailer you sell the property to will make more money than you will on the deal. Do not let his profit potential bother you. There is enough room for both of you to profit, and, unlike the retailer, you assume little risk.
A real estate investors club in your area is an excellent place to meet other dealers and retailers. A good place to start is real estate forums like
http://www.buyincomeproperties.com/vbforums/
You can also find other local investors or partners by reading the local newspaper classified ads in real estate section.
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