From
Buyincomeproperties.com
Wholesaling or Flipping Investment Properties
By Buyincomeproperties.com
Oct 21, 2005, 12:17
Real Estate Wholesaling for immediate profits is great for every investor, even the beginner. Why? Because, the world of wholesaling, that is flipping properties, will help you to begin earning proceeds on investment real estate without using your own money.
You could also earn investment home income by working at buying and holding, rehabbing, or by rentals, but their drawback is twofold: more work and less income.
Hence, buying and holding investment properties entails the work of borrowing, and the income cutting anguish of repaying interest at some mortgage rate. Whereas, remodeling homes never earns you as much money because you will be paying a home mortgage while you also are paying home improvement contracts. Likewise, when investing in rental property there are maintenance, property insurance, and other fees.
Truthfully, the serious money in investment real estate only comes when you are flipping houses. Why not omit the investment loans, managerial fees, and home remodeling fees by engaging in house flipping? Get in and out, and thus make money flipping real estate for up to a year until your cash account supports keeping homes.
First, you make an offer on an investment property. When making your offer, remember your buyer, the rehabber. You want to leave him a conservative profit margin over the market value of the investment house. That is you buy at a price about 30% below what the house will sell for after the rehabber puts in and makes back their 25%. Thus, the quick money 5% is your profit for the timely work of flipping a house.
The next three steps a real estate franchise can also help you with. First, you r offer is accepted, so your agent and you sign the contract to buy the flipper.
Next, you get your real estate lawyer to start doing the title work ASAP. They will order you a title search as well as schedule you a settlement date. You want this done right away, because you want to settle on time so that your real estate investment buyer can settle and buy from you on time.
Then immediately, you begin marketing that investment property to find a buyer for that secured title. What are some ways to market? Keep yourself a buyer's list of clients who are interested in real estate leads. Also, put an advertisement in the properties section of your local Sunday paper to run on the weekend.
After that, you weigh the interest from all sale leads. Keep in mind, the more potential buyers you cover, the less compromising your final sales price should be. Yet, you swiftly accept an agreement from one of your prospective buyers.
Then, after your leads generation churns out a buyer with an oral agreement, but before the written agreement, you should use your mortgage broker to qualify your prospective buyer. Make sure they have the cash, savings or a credit account from a lender.
To finish your property flipping deal, after verifying the funds, you sign that contract and collect that deposit. Also on your sales contract, you might want to include a statement saying, “Received $#, ###.00 for earnest money deposit. Include their payment check number or note “CASH.”. Date this and initial it.
Finally, your real estate lawyer submits these executed documents to your title company, the original seller, and the buyer to schedule a closing date. And in no time, you go to settlement, pick up your check, and celebrate! Wholesaling or flipping real estate has brought you the quickest substantial profits offered in the real estate world.
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