Flipping houses (also known as wholesaling houses) is the quickest method to make cash in real estate investing. It is also the business model that needs little to no money invested.
- You can make your money in just two to three weeks.
- The profits may not be as big as other real estate investing business models, but you can generate a healthy income just by wholesaling houses.
- On average, I take home 00 to 000 per deal, with very little effort and work.
- You can do 3 to 5 wholesale deals a month part time.
- Mainly you must identify good deals below market value and a real estate investor with cash.
- I do not rehab anything when wholesaling houses; this is the work of the real estate investor that I flip the deal to.
- To be successful as a real estate investor flipping houses, here are a few tips you must follow.
1) Buy at affordable price range
Most rehab real estate deals fall in the middle price range.
- Where I live, this is generally below 0,000.
- Some lenders only lend if you buy with defined price ranges.
- By going too low, you could be targeting un-attractive neighborhoods.
- Going too high can limit the number of buyers you have. It is necessary to have high speed for successful wholesale real estate investing.
2) Avoid insecure neighborhoods
- Fairly-priced neighborhoods are most popular with most real estate investors.
- Notwithstanding the fact that lower prices are always better, most real estate investors would rather buy where they can rent them out easily. Wholesale real estate investing therefore requires you target good neighborhoods.
3) Estimate your repairs fast and accurately
Rehab cost estimate is a necessary part of flipping houses.
- Most are need of fixing up, so repair estimates must be included in the offer you make.
- When buying wholesale houses, I buy below 65% of fair market value minus rehab costs. The lower my offer, the more my potential profits when I flip to other real estate investors.
4) Make good offers and buy right
- The most important part of real estate investing is making an offer. When flipping houses, you must make a profit and still leave a profit for the real estate investor buyer.
Obviously, as long as you know the estimated restoration costs and the after repair value after it is fixed up, you will be able to make an offer that both gets accepted and leaves enough cash on the table for both you and the wholesale real estate investor you flip the house to.
5) Identify rehabbers with cash, mainly other real estate investors
- Once you have a contract to buy, you must get a wholesale buyer with cash that will fix it and sell, or hold it. - You must verify where the money is coming from before flipping your houses.
- Money in the bank or credit line is always the best source of cash.
- This way, you will sell your houses fast with few lending conditions.
- Most importantly, they must produce a sizable non-refundable earnest money before I can sign a contract.
6) Sell quickly
- Once you have verified cash, you can close your deals with 2 to 3 weeks including time for title work.
- The faster to can sell, the faster you make your money and move on to other deals.
Simon Macharia invests in real estate in the Dallas Fort Worth metroplex in Texas. As part of successful real estate investing, he runs his business from a real estate investors Web Site from http://realestateinvestorswebsites.Net/designs.Php
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