Enter the complicated world of real estates


How to Start Flipping Houses for Cash and Get Rich Doing it

One of the trendiest real estate investingbe  done.
techniques around today is called "flipping
or wholesaling real estate". This technique1.  You  can  put  an  option  on  it.
is so popular because it requires no real
investment money, no credit requirements and(What's  an  option?)
pretty much, no real estate investing
experience. It's the age-old process ofA unilateral agreement binding the seller to
buying something at wholesale cost andselling a property to you exclusively, for a
selling it retail, but with a slight twist,predetermined price, but at a later date
you actually sell the product without eversometime  in  the  future.
owning it. Once you complete the sale the
investor can walk away from the closing table2. Have the seller sign a purchase agreement
with anywhere from 10 to 50 thousand dollarsthat gives you say, 90 days to close. This
on  average.is called a buyer favorable purchase
agreement. It is designed to help you, the
By now I'm sure you can see why this methodbuyer.
might be so well liked especially among
beginning real estate investors. There are3.  Land  contract  or  contract  for  deed.
several so-called real estate gurus out there
selling books, cd's and tapes on the subject(What's  a  land  contact?)
for hundreds of dollars but this is one the
easiest  investing  techniques  to  do.A contract used in a sale of real property
whereby title to the property remains vested
Let's  explore  what flipping houses entails.in the seller until the buyer who receives
the right to possession has paid in
An investor locates an under valued house,installments over a long period of time a
preferably a property that needs onlypreset amount or all of the purchase price
cosmetic repairs or what we like to call aand upon default by the buyer all payments
"sugar coat deal". This means a house thatmay be forfeited. Also known as a Conditional
will only need paint, carpet windows or somesales contract, an Installment sales contract
other very minor repairs, definitely noand  a  Real  property  sales  contract.
structural issues or roof replacement deals.
You really want a house that has beenThere's a few other ways to lock up a deal
neglected a bit, one that the seller hasn'talso, just make sure you don't spend any
kept up very well. These types of propertiesmoney until you have the deal secured but
can be spotted very easily because they sticklet's  move  on.
out like a sore thumb in a well-kept
neighborhood. The paint's peeling, the grassWhen you have secured the deal, then you
is  uncut, it needs replacement windows, etc.start making the necessary repairs to bring
the property back up to the neighborhood
Plus you will make the most profit fromstandard. That's when I like to start looking
finding the worst house in the bestfor a buyer, while I'm actually making the
neighborhood, if that makes since. You wantrepairs, just to get a head start. This makes
to do this because when it comes time tothe  transaction  go  a  little  smoother.
sell, you want to be able to get the highest
value, make your profit, while leaving someNow remember, when you bought the house, you
equity  on  the  table  for  the  homebuyer.paid a discounted price because the home
needed repairs. But now you've the repairs
Once you've found this type of property, thenand the home can be sold on the retail market
you need to put it under contract and lock upto a retail buyer. This is where you make
the deal. There's a couple of ways this canyour profit!



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