Using the Time Tested Methods for Flipping Houses and Wholesaling Real Estate

18 Feb 2009 @ 8:50 AM

Using the Time Tested Methods for Flipping Houses and Wholesaling Real Estate

There are different meanings that people talk about for flipping. Some mention it as actually getting a loan for a property, then quickly fixing it up to resell it. This is something you can apply but there are also many financial risks that can be an issue, particularly in soft or lingering real estate markets.

While we mention flipping, we are talking about securing properties cost effectively and then assigning (or flipping) them to another buyer for a fast profit. When we talk about real estate wholesaling, we are basically discussing finding houses at a discount and assigning them at a discount to another individual or rehabber; thus the term wholesaling. For further clarification on lingo, when you flip a home to another person, this just means you are providing the right to them to buy the property directly from the seller.

After you get a house under contract, you will have control. Then you can wholesale it to another investor at full price or for a flat fee so they can take ownership of it. They take your place in the contract, then purchase the house, handle fixing it up and either keep it or sell it to another person for full price. A program like the one developed by Matthew Sorensen is a great no risk option to create fast money using little or no credit or other lending techniques.

Since you have neither of these limitations you can also do as a many as you want making real estate wholesaling a great cash flow strategy especially once you have a reliable system working for your business!