| One of the trendiest real estate
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| | for the homebuyer.
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| investing techniques around today is
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| | Once you've found this type of property,
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| called "flipping or wholesaling real
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| | then you need to put it under contract
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| estate". This technique is so popular
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| | and lock up the deal. There's a couple
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| because it requires no real investment
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| | of ways this can be done.
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| money, no credit requirements and pretty
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| | 1. You can put an option on it.
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| much, no real estate investing
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| | (What's an option?)
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| experience. It's the age-old process of
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| | A unilateral agreement binding the seller
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| buying something at wholesale cost and
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| | to selling a property to you exclusively,
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| selling it retail, but with a slight
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| | for a predetermined price, but at a later
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| twist, you actually sell the product
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| | date sometime in the future.
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| without ever owning it. Once you
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| | 2. Have the seller sign a purchase
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| complete the sale the investor can walk
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| | agreement that gives you say, 90 days to
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| away from the closing table with anywhere
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| | close. This is called a buyer favorable
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| from 10 to 50 thousand dollars on
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| | purchase agreement. It is designed to
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| average.
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| | help you, the buyer.
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| By now I'm sure you can see why this
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| | 3. Land contract or contract for deed.
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| method might be so well liked especially
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| | (What's a land contact?)
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| among beginning real estate investors.
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| | A contract used in a sale of real
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| There are several so-called real estate
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| | property whereby title to the property
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| gurus out there selling books, cd's and
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| | remains vested in the seller until the
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| tapes on the subject for hundreds of
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| | buyer who receives the right to
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| dollars but this is one the easiest
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| | possession has paid in installments over
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| investing techniques to do.
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| | a long period of time a preset amount or
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| Let's explore what flipping houses
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| | all of the purchase price and upon
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| entails.
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| | default by the buyer all payments may be
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| An investor locates an under valued
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| | forfeited. Also known as a Conditional
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| house, preferably a property that needs
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| | sales contract, an Installment sales
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| only cosmetic repairs or what we like to
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| | contract and a Real property sales
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| call a "sugar coat deal". This means a
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| | contract.
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| house that will only need paint, carpet
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| | There's a few other ways to lock up a
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| windows or some other very minor repairs,
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| | deal also, just make sure you don't spend
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| definitely no structural issues or roof
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| | any money until you have the deal secured
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| replacement deals. You really want a
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| | but let's move on.
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| house that has been neglected a bit, one
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| | When you have secured the deal, then you
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| that the seller hasn't kept up very well.
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| | start making the necessary repairs to
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| These types of properties can be spotted
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| | bring the property back up to the
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| very easily because they stick out like a
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| | neighborhood standard. That's when I like
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| sore thumb in a well-kept neighborhood.
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| | to start looking for a buyer, while I'm
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| The paint's peeling, the grass is uncut,
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| | actually making the repairs, just to get
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| it needs replacement windows, etc.
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| | a head start. This makes the transaction
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| Plus you will make the most profit from
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| | go a little smoother.
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| finding the worst house in the best
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| | Now remember, when you bought the house,
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| neighborhood, if that makes since. You
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| | you paid a discounted price because the
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| want to do this because when it comes
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| | home needed repairs. But now you've the
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| time to sell, you want to be able to get
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| | repairs and the home can be sold on the
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| the highest value, make your profit,
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| | retail market to a retail buyer. This is
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| while leaving some equity on the table
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| | where you make your profit!
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