Flipping Real Estate Can Make You Money
Author: Hans Anderson // Category: Mr. Foreclosure Aiden Win
If you are just beginning as a real estate investor, there is no
better way to get started than by flipping real estate and
profiting quickly! Everyone gets into real estate investing for
one reason. To make money! If you’d like to make more money investing in real estate, you need to know a few essentials.
I’ll begin by explaining what the term “flipping” means. The
simple definition for flipping is the act of 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. For
example, you may join a site like the Foreclosure Insiders Club to access a list of properties in your area that are in danger of
going into foreclosure.
Securing a sales contract
Selling their contract for roughly $500 to $5,000 to a seasoned
real estate investor
You may be worried as to whether real estate flipping is legal?
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 homeowners 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.
Again, joining the Foreclosure Insiders Club is a great way to do this and stay a step ahead of other investors and realtors in your area who don’t access to this information!
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. It’s all a matter of
buying low, selling for full market value, avoiding mortgage fraud, and enjoying your profits!
To Your Success!
Aiden Win
Mr. Foreclosure
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Tags: bird dogs, flipping houses, flipping properties, flipping property, flipping real estate, foreclosure, investing in real estate, Pre foreclosure listings, purchase contract, real estate investor, real estate investors, unqualified buyers