Flipping
Bird dogging has been explained, but what about Flipping deals, which one is better, what does flipping deals consist of? (financially) :-?
Bird dogging has been explained, but what about Flipping deals, which one is better, what does flipping deals consist of? (financially) :-?
Flipping, or simultaneous closing, means buying and selling a property through the same escrow.
Let's say I have a seller who will sell to me for 100k. I option the property from him for a fee covering a period of 45 days with full access rights. You can also use a contigency-laden sales contract. Title work begins and the contract is submitted to www.escrow.I then immediately begin shopping the home to my list of buyers.
One of them sees potential and offers 125k for it, thinking that after repairs, he'll net 30-40k on the sale. The contract is signed.
That contract gets submitted into the same escrow with the expressed purpose of executing a double close.
The date is set and times are appointed to sign paperwork and distribute monies. This can be done all at the same table (sometimes awkward) or at seperate times. The times of execution are irreleavant as long as the deeds are recorded in the right order.
Once all paperwork is complete, you receive your check within 24-48 hours in the amount of the difference between buy and sale price minus closing costs.
Sounds simple in theory, right? There's alot of hard work involved, so it never hurts to study your butt off.
Hope this helped.
[addsig]
Thankyou so much holler, it actually was alot of help. I will research that, it sounds interesting, but in your opinion, is flipping better than bird dogging?
Yes. You can' t really consider yourself an investor until you contract a property yourself. As a birddog, you are just finding deals for other investors for a small fee. I don't work that cheap. For all that work, I'd rather contract it myself and flip it or assign it.
[addsig]
Holler,
I have a question for you is flipping properties like you explained a good thing. I would think it would be eaiser and less of a headache to just assign the contract.
What is your opinion on that.