There are different meanings that people talk about for flipping. Some talk about it as actually buying a property, then quickly fixing it up to resell it. This is an option you can apply but there are also a lot of other financial risks that can be a concern, particularly in flat or lagging real estate markets.
When we refer to flipping, we are talking about securing houses cost effectively and then assigning (or flipping) them to another buyer for a fast profit. When we discuss real estate wholesaling, we are basically referring to finding properties inexpensively and assigning them at a discount to another investor or rehabber; thus the term wholesaling. For more details on jargon, when you assign a house to another individual, this just means you are giving the right to them to purchase the property directly from the seller.
Once you get a property under contract, you will have control. Then you can pass it on to another rehabber at a higher price or for a flat fee so they can close on it. They take your place in the contract, then take ownership of the property, take care of rehabbing it and either keep it or sell it to another person for full price. A method like the one taught by Matthew Sorensen for real estate investing is a great no issue strategy to create fast money using little or no cash or other banking techniques.
Since you have neither of these limitations you can also do as a many as you want making real estate wholesaling a great cash flow option especially once you have a consistent revenue model working for your team!
0 Responses
Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.