Flip That House

The real estate market can prove to be a very lucrative business. It does require you to do your home work and determine what avenue you will be most successful with. A lot of people are entertaining the idea of what is know as “flipping” houses. This can indeed bring you quick cash. There are essentially three different ways this can be done.

The first method is referred to as “retailing”. This is accomplished by purchasing distressed property, making the repairs and then selling to make profit. This is a very easy method. However, there are a few things to consider when choosing this method. Can you make the repairs? If the answer is yes, then that will save you money, meaning more profit for you. If no, consider how much you will have to hire someone to complete this for you. Also, keep in mind the type of repairs that will need to be done and how much this will cost you. For example it will be cheaper to replace drywall and re paint a house then to re place plumbing. You may find that having a small team of contractors in place may prove helpful. Weigh this against what you will pay for the property and what you believe you will sell it for. Keep in mind you want to make a decent profit.

The second method is known as “wholesaling”. If you choose this method you will find it helpful to have relationships with the real estate agents in your area. To do this you need find houses that would be marketable to investors and sell the house or houses to them. Larger areas and cities are generally easier target areas to begin wholesaling, also be sure to fund your house properly as to make it easier to flip. This option will offer you a small profit for each wholesaled property.

The third way is called assigning. With this option you would find the home you believe is marketable and would afford interest. Instead of you “purchasing” it yourself, you would assign another individual to “purchase” it. This would generally be a real estate agent. That agent would basically take over for you and close the property. You will need to take in consideration the assignment fee for this option.

You can make money with any of these methods. If you are just starting out you may find that “retailing” and “assigning” property may be easier to begin with. Either way, if you are determined, with a little hard work you will be a pro in no time!