Real estate property Flipping – Is Turning Real Estate the greatest way to begin in real estate investing?
“Flip This kind of House”, “Flip That House”, “Property Ladder”,… and on and…
Over the earlier couple years both you and I have recently been hammered on TV with real estate flipping implies that depict these people making outrageous profits flipping homes and so that it is look easier than heck. californialegacytowing.net
So, is this flipping stuff real? Well… it sure is. There are many people out there making a darn good living turning homes. But… the television set shows on flipping are darn deceiving when it comes to the “reality” of real estate flicking.
Is flipping real property the best way to get starting in real estate investing? I’ll enable you to decide for yourself. Nevertheless, i think, for most people, especially in today’s down markets (not all marketplaces are down… there are actually some doing really well), real estate wholesaling is not the best way to get started out in reits.
First, let’s clarify two sorts of flipping.
The Fix and Flip – Where you buy real estate, treatment it, and sell it to a retail buyer. The kind that is on the TV shows.
The General Flip – Where you buy real estate (or get it under contract), find a wholesale buyer, and flip the deal. The kind that is less glorious… but has a ton of money in it… with a heck of a great deal less risk.
To myself, the Fix and Turn method is not for most newbie’s… even though that is the sort of real estate investing you observe on TV all of the time.
You desire a good understanding of treatment costs
You need to have good funding… either from a private lender or a bank (private lender is preferable)
You should be able to float the carrying costs if you can’t sell the exact property quickly
If you don’t estimate your costs just right… there might not exactly be a whole lot of room for error… and room for error means higher risk on you!
The market is a downward spiral… so there are less retail buyers out there for middle income properties… which is what most people start out turning
There are plenty of people out there making a very good living flipping… but almost all of them started several years ago… and have many flips under their devices.
They already have systems down, have marketing programs for getting buyers, have solid lending sources, and so forth. Not to say that new real estate shareholders cannot do each of the above… YOU CAN!
But, there are better ways to get were only available in real house investing that allow you to get in with little or no risk or money, and will allow you to understand Fix and Flip business before you ever have a huge money commitment to accomplish this.
What’s the single best way (in my opinion) to get started in real estate flipping to reduce your risk and shorten your learning competition… even while making nice money in the procedure? Well… clearly option #2 from above: The Wholesale Flip – or in other words… wholesaling real estate, flicking houses for quick cash, flipping contracts, etc.
When ever you wholesale real house you do everything a flipper would normally do… except actually repair the property and sell it to a retail buyer. However you don’t have the risk or time commitment that a fix and flipper has.
Quite simply, you as an inexpensive real estate flipper (or wholesaler for short), find properties that need work that you can buy at a sizable discount and flip them for a cost to a rehabber that will do the work.
Your job is to find the properties, analyze the quantities to determine the vehicle repairs needed, create an offer that permits both you and the rehabber that you will sell to make a profit, and sell the contract to a rehabber who will can even make the repairs.