Flipping Real Estate

Many beginning real estate investors get started by flipping real estate to
make quick cash. If you would like to make more money by investing in real
estate, you need to know a few essentials.

What is the definition of real estate flipping?

Simple definition: Buying property and reselling quickly, hopefully for a
great profit. Usually, people think of flipping houses, or the buying and
selling of a home fast, as the only way to make money flipping real estate.
However, some investors specialize in other types of real estate such as land or
strip centers.

Some confusion arises over the process of making money flipping property.
People who specialize in finding bargain real estate, obtain a purchase
contract, and then sell the contract before taking title to the property are
known as "Bird Dogs." These beginning real estate investors get
started with no money down by:

 




 


• Finding a seller under stress with a bargain property
  
• Securing a sales contract
  
• Selling their contract for roughly $500 to $5,000 to a seasoned real
  estate investor

 

Isn't real estate flipping illegal?

Flipping real estate isn't illegal. However, many unscrupulous investors
committed mortgage fraud to make fast money. Some of these investors, working
with mortgage brokers and appraisers, resold houses to unqualified buyers
inflating the property value and home buyer’s qualifications. Often these home
purchases had no money or little money down. When these new home owners
defaulted on the mortgage payment, the mortgage lenders lost money because the
house wasn't worth the inflated purchase price.

To avoid legal problems in real estate flipping, don't commit mortgage fraud.

To make money real estate flipping:

1. Prepare your financing so you can close on a deal quickly.

2. Learn your market so you know what makes a good deal.

3. Find a bargain property owned by a seller under stress to sell.

4. Secure a purchase contract in your favor.

5. During escrow, plan your selling actions.

6. Close on the property on time.

7. Immediately set your selling plan into action. If the property needs
fixing, be prepared to get this done right away.

8. Market your property to your target market. Don't just list the property
and hope for the best.

9. Find a qualified buyer. Have a loan officer check to make sure your buyer
meets all the mortgage requirements.

10. Stay legal. Don't use an inflated appraisal. Don't gift your buyer the
down payment. Don't help your buyer create false W2s, write phony credit
letters, or prepare any false documents. You can pay many of your buyer’s
closing costs to make the purchase easier.

You can make money flipping real estate. Buy low, sell for full-market value,
avoid mortgage fraud, and enjoy your profits!

Copyright © Jeanette J. Fisher

Jeanette Fisher teaches beginning real estate investors how to find, finance,
fix, and sell houses for top dollar. To find out how to make more money using
interior design psychology strategies and get a free ebook on Flipping Houses,
see http://doghousetodollhousefordollars.com/