Is Flipping for The Newbies...
If you have ever wanted to turn a quick profit of $2,000 to $20,000 in real estate flipping, then get ready to discover the amazing world of wholesale deals where you buy real estate under contract, find a wholesale buyer, and then flip the contract. Unlike the glorious property investment reality shows portrayed on TV… this kind is a lot less glorious but has loads of money to be made with very low risk factor involved (one of the reasons why this strategy is so attractive to the newbie real estate flipper). Or maybe you’ll want to consider getting into the fix and flip side of the business where you buy real estate, rehab the property, and sell it on to a retail buyer. This article will investigate the pros and cons in both real estate flipping methods to help you make an informed decision as to the direction into the real estate flipping business you’d like to take.
The flip and fix method isn’t quite for the newbie. However, this is what you see on TV all the time (which is quite misleading, to say the least). To do this, you’ll need to have a really good understanding of the cost of rehabbing property you want to flip. You’ll also need to have access to investment lenders like private lenders or banks. (I’d prefer borrowing from a private lender). And just in case you’re unable to sell the property quickly, you’ll need to be able to float the carrying costs. Be warned, not calculating your costs correctly would increase your risk factor.
I wonder if you knew that middle income properties are what most flippers flip. That said, the market is on a downturn and therefore there are less retail buyers for middle income properties at present. Some people say that many people are making a very good living in real estate flipping, but that unless you started several years ago and have many flips under your belt, the going is likely to get pretty tough when you’re just starting out. If you want to pursue the fix and flip property investor route, consider this: the seasoned fix and flip flipper will already have a network in place; is able to market quickly; and has relatively easy access to funding.
If you’re the kind of person that wants to explore the real estate fix and flip method, however, then you will be fascinated to discover just how powerful getting started in real estate with little or no risk; and with no financial outlay on your part can be. However, before you take the plunge into investing a huge amount of money, this little detour will have you learn the ropes in the fix and flip business while you earn selling wholesale (because you’ll get to know the people you’re selling to and how they work). Like the sound of that? Well, the more you realize how easy and profitable this route really is, the more you you’ll want to learn to analyze the cost of repairs needed, create an offer and flip your property to a rehabber for a very handsome fee, leaving the rehabber with the job of repairing and selling the property while you move on to the next property to flip.
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