|
|
|
|
Home / Finance / Real Estate
What's the Truth About Flipping Real Estate?
By:Jeanette Joy Fisher
Would You Like to Make Money Flipping Real Estate?
Many beginning real estate investors get started by flipping real estate to make quick cash. If you would like to make more money by investing in real estate, you need to know a few essentials.
What is the definition of real estate flipping?
Simple definition: Buying property and reselling quickly, hopefully for a great profit. Usually, people think of flipping houses, or the buying and selling of a home fast, as the only way to make money flipping real estate. However, some investors specialize in other types of real estate such as land or strip centers.
Some confusion arises over the process of making money flipping property. People who specialize in finding bargain real estate, obtain a purchase contract, and then sell the contract before taking title to the property are known as "Bird Dogs." These beginning real estate 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. Some of these investors, working with mortgage brokers and appraisers, resold houses to unqualified buyers inflating the property value and home buyer’s qualifications. Often these home purchases had no money or little money down. When these new home owners 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 on 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!
Copyright © Jeanette J. Fisher
Article Source: http://www.dailynewarticles.com
Jeanette Fisher teaches beginning real estate investors how to find, finance, fix, and sell houses for top dollar. To find out how to make more money using interior design and get a free ebook on Flipping Houses, see doghousetodollhousefordollars.com/
More Articles from Real Estate Category:
Florida Real Estate- A Better Alternative for Investment Retirement or Holidays
Common Questions And Answers About Selling Your Home As Is
Selling Your Home As Is in Trickier Times
Advantages of Selling a House As Is On Your Own
How To Sell Your Home For The Highest Price Possible
Selling Your Home As Is Without an Agent
Setting the Price on Your Home
Tips on Selling Your Home As Is
Influence Your Sphere
Home Rentals - Pick The One That Matches Your Pocket
How to Invest in Real Estate
Mistakes that People Often Make in Real Estate
Rising Property Prices
Real Estate vs. Stock Market Investing
Tips for Successful Investing
|
|
