Knowing the Proven Methods for Wholesaling Houses and Flipping Real Estate
Sunday, April 5th, 2009There are different descriptions that people mention for flipping. Some discuss it as actually getting a loan for a property, then quickly fixing it up to resell it. This is a strategy you can apply but there are also more financial risks that can be an issue, particularly in flat or lagging locations.
So when we refer to flipping, we are talking about controlling houses inexpensively and then assigning (or flipping) them to another buyer for a speedy profit. While we discuss real estate wholesaling, we are basically mentioning finding houses at a discount and assigning them inexpensively to another individual or rehabber; thus the term wholesale. For more clarification on lingo, when you transfer a property to another person, this just means you are transferring the right to them to buy the property directly from the owner.
Once you get a property under contract, you will have control. Then you can wholesale it to another rehabber at a larger price or for a flat fee so they can close on it. They take your place in the option, then purchase the home, take care of rehabbing it and either keep it or sell it to an end buyer for a higher price. A real estate system like the one developed by Matthew Sorensen for real estate investing is a great no risk strategy to create quick cash using little or no credit or other financing techniques.
Since you have neither of these limitations you can also do as a many as you want making real estate wholesaling a great cash flow strategy especially once you have a reliable revenue model working for your business!