Real Estate Investing Advice

There are several ways you can make money with real estate. Many people are taking a value investing approach to real estate. I like that approach and try to use it. I also think it is good to try and make some money by flipping houses for profit. It would be a good change of pace, you would have some new experiences that would help you in the future, it keeps you on your toes preventing boredom. I wouldn’t go crazy and try and buy 3 houses and flip them all at once….just one every once in a while for the reasons mentioned above.

Ways to flip houses for profit

There are a few ways that you can flip a house. Most people start flipping real estate by distress properties and do the repairs to fix it up, then sell it for hopefully a handsome profit.  There are all kinds of homes in need of repairs on the market in various states of distress. You can find a house that may need only paint and landscaping. Then there are times when the house needs a total overhaul. Of course there will be flips where you buy a house and find unseen costs that can eat up your budget and have minimal, if any, profit for you. That is just part of the game unfortunately. Just think of it as a learning experience. Hopefully in the future you can avoid those problems and save money and increase profits.

Another way people are flipping houses for profit is by assigning the purchase. By assigning the purchase you will make a commitment to buy the house. Instead of closing the deal yourself, you’ll assign it to another real estate investor. The assignment comes with a fee. The investor you agree to assign to will get the contract and make the  purchase for themselves. The hardest part for you will be deciding on the assignment fee. That will take a little bit of negotiating on your part, but if it is a quality home, you can make a substantial amount of money by using this method.

One more way you can flip houses for profit is though wholesaling. Basically, wholesaling is  finding a home for sale then flipping it to an investor for some fast cash. The profit potential is not as high, but you get a quick turnaround and some quick cash. This is where knowing a lot of people in the business comes in to play. Networking will be very important if you want to try and make money flipping by wholesaling. I have a friend of mine who had just bought a house and was getting ready to start repairs when one day another investor dropped by while he was doing some work on the house. This investor offered to buy the house from my friend. The offer was a potential nice profit to my friend, so he took it. He had barely had to do anything to the house before he made some good money.

Of course an example like that doesn’t happen that often, but it is a possibility when you are trying wholesaling.

Reality television has made flipping houses very popular in the past few years. Most people try to find a distressed property and then get in over their head. They are surprised that it actually takes work! Many people have tried, few have succeeded. It will take hard work, persistence, common sense, and good budgeting skills. If you can do all of that, you can make some money. You make even like flipping houses to make money so much that you may decide to flip houses for a living.