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A lot of so called guru’s are preaching the buy and hold method of creating wealth through real estate. I agree that there may come a time in your business when you will want to hang on to a piece of real estate but you will only want to keep certain types of real estate but if your just getting started flipping a house is the only way to go.
There are basically 3 ways to flip a house and each one has its place in terms of location, property type and seller motivation.
The First method you can use to flip a house is called retailing. Basically what this means is you buy a distressed house fix it up and sell it on the market. There are many types of distressed houses and there are several ways to flip a house quickly on the market. You just need to know the techniques that will add the most value in the least amount of time in the most cost effective way.
The second method you can use to flip a house is called wholesaling. This is the process of finding a house that is for sale and flipping it to a real estate investor for a small but fast profit. All you need to know is who the real estate investors are in your area, what type of house flips they are looking for and how to fund your purchase of the house so you can flip it to them.
The third method is called assigning the purchase. This is where you contract to buy the house and then instead of closing the purchase yourself you assign the contract to a real estate investor for a fee. They take over the contract and then close the purchase instead of you and they flip the house. You do need to word your contract in a very specific way to do this legally and you need to know how to determine the assignment fee. This can be a very profitable method of house flipping. |
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