Flipping Real Estate

Flipping Real Estate: Fact or Fiction? Your Quick Guide to Making Money Flipping Real Estate in 7 Simple Steps... Every time you turn your head, someone else is talking about flipping real estate. What are they really talking about and is it something that YOU can do? First, let's define the two types of "flipping real estate". 1. Flipping the contract: (Also known as "assignment of contract") You find a property for "pennies on the dollar", put it under contract and then "flip" that contract to, most likely, someone that is going to do the rehab, or renovation on the property. 2. Flipping real estate: Buy a property, fix it up, and resell it to an "end buyer". This is known as "flipping real estate", "rehabbing", or "retailing" to name a few. OK, now that we've gotten the terminology out of the way, I want to first start by telling you that real estate is simple, but not easy, so if you're looking for a get rich quick scheme, you're probably going to get yourself into trouble. Now... on to how YOU can make money flipping real estate. We're going to focus on the second definition of flipping real estate: buying, fixing and reselling. Step #1 - Find the Right Deal If I made a dollar every time someone told me there were no more deals, I'd be a multi-zillionaire by now! Here's the thing and I want you to get it through your head! There are PLENTY of deals - even where you live! Make a consistent effort to really look for houses that are overgrown, in need of paint, possibly boarded up, etc. These are going to be your best bet for flipping real estate. Step #2 - Estimate the Repairs You can either go ahead and bring a contractor or handyman with you or you can get a simple calculator that will figure out the "rough" numbers - like the one found at http://www.fixingandflipping.com Understand, however, that more often than not - like 99.99% of the time - your budget will come in lower than your actual costs! You may also want to have a home inspection to check out the major items: foundation, roof, plumbing, electric, HVAC, etc. Step #3 - Negotiate the Contract This is where many people run away from real estate. "Contract" is not a four letter word! In fact, it is your best ally when you are negotiating! Use your contract negotiations to pay for the repairs by getting seller contributions and repair credits. This will keep you from having to dip into your own pockets for repairs! Make sure that you have a way out in case the deal isn't going to work for you. Some "escape" clauses that you can handwrite in are: - "Subject to satisfactory appraisal" -"Subject to partner's approval" - "Subject to satisfactory inspection" Step #4 - Find Your Money Don't get caught up on this one! Finding money is really much more simple than you might imagine if you've followed steps #1 - #3! I know it sounds clich