Would You Like to Make Money Flipping Real Estate?
Several real estate beginner investors begin by flipping real estate to make fast cash. If you would love to make more money by investing in real estate, you need to know a few important things.
What is Real Estate Flipping?
Simple Meaning: Buying property and reselling quickly, optimistically for a good profit. Normally, individual believe flipping houses, or the buying and selling of a home quickly, as the only way to earn money flipping real estate. But, some investors focus on other types of real estate such as strip centers or land.
Some misunderstanding arises over the course of making money flipping property. People, who focus on finding cheap real estate, get a purchase contract, and in turn sell the contract before taking title to the property is known as "Bird Dogs." These real estate beginners’ investors get started with no money down by:
· Finding a seller under stress with a bargain property
· Securing a sales contract
· Selling their contract for roughly $500 to $5,000 to a seasoned real estate investor
Isn't real estate flipping illegal?
Flipping real estate isn't illegal. However, many unscrupulous investors committed mortgage fraud to make fast money. Many of these investors, working for mortgage brokers and appraisers, resell houses to buys not qualified increasing the property value and home buyer’s qualifications. Sometimes, these home purchases had no money or less 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 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.
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 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.
Yes, you can make money flipping real estate. Buy low, sell for full-market value, avoid mortgage fraud, and enjoy your profits!