Flipping Houses for Fast Real Estate Profit is the exact opposite with real estate investors. You can buy a house and then “flip” it to another investor for a small but fast profit,allowing you to reinvest your money and repeat the process. You can also assign contracts for a fee (another form of flipping), allowing another buyer to close on the property in your place.
“flipping houses” as two definitions:
1) The process of *legally* selling a property for a fast profit, sometimes using little or none of your own money
2) The process of *illegally* selling property for an artificially inflated value, often involving a group of criminal appraisers, loan officers, and investors
While the concept of flipping houses is nice, the reality is that so much more is involved in flipping real estate. Without the proper knowledge on how the process works, you could end up being saddled with a house you really do not want to own or end up taking a big loss on the sale of your property.
If you are considering real estate investments in general and house flipping in particular there are some things you should keep in mind:
1) You must treat this as a business rather than a hobby. Far too many investors do not take their investments seriously. This is a mistake because in this business time is money and every month that the house isn’t sold is a month that the house is costing you money. Create a plan, make a schedule, and stick to them both.
2) Remember that this is a business. You are not investing in properties to make friends or seem nice. You are in this business to turn a profit. You cannot be timid about making low offers. The ability to buy low and sell high is the lifeblood of this particular business.
3) Pay attention to the market. This is vitally important. Do not buy in an inflated market if it can be avoided unless it is during the very beginning of the inflation (before property developers have the opportunity to create a surplus).
4) Do not allow it to become personal. Far too many first time house flippers decide to create a work of art rather than a business investment. It is tempting when making cosmetic and structural repairs to go ahead and create a dream home. The problem with this is that depending on the particular market you are unlikely to recoup the costs involved in doing so. The goal is to invest little and profit large.
5) Look into getting an option arm mortgage loan with minimum payment. This type of loan program can increase your cash flow by cutting your monthly payment in half! These loans will also allow you to take a small piece of your equity and turn it into a tax deduction by creating deferred mortgage interest.
Whether you want to make money investing in real estate by flipping or fixing houses, you need to understand your market. To get started in your real estate business, go house shopping. You’ll soon learn how to pick up a flip or a fixer and be on your way to making a high return on your money.