Have you seen the show flip this house? What they do is buy and property for pennies on the dollar, fix the property up and then resell the house and make 20 thousand or more. This is a great strategy if you have the money and don’t mind waiting around 3 months to get your property sold. I want to talk to you today about a strategy where you can make five thousand or more in less than 30 days and more importantly with less than 8 hours of work.
So what is the magical strategy? If you guessed wholesaling real estate than you are correct. Wholesaling houses is the best house flipping method around and the quickest method to produce cash in real estate investing. The best part is that you can do this with little or no money of your own.
So how do you wholesale or flip houses for quick cash?
1) Find a cheap house
With the current state of the economy and real estate market this is no shortage of motivated sellers out there. A seller can be motivated because of financial troubles, foreclosure, bad tenants, inherited an unwanted property, divorce and so on.
What I do is send all of these people a letter telling them how I can possibly help them. You can also find endless leads online with a nice fully optimized web site.
2) Negotiate and sign a contract
Because motivated sellers just want to sell fast and put their problems behind then, you really have lots of room to negotiate if there is equity in a deal.
Once you have negotiated a price, ran some numbers to make sure the property is a good deal you can put the property under contract. Contracts are very simple to fill out but can be confusing at first. Ask a local realtor to show you how to fill one out.
3) Find you Investor Buyer
When dealing with investors you want to work with cash buyers. Cash buyers are investors who can close on a wholesale deal with cash, and not have to go to the bank and get a loan. Closing on real estate with all cash makes the process run a lot smoother and goes quickly.
Where do you find cash buyers? Check your local real estate investors association, foreclosure auctions and networking events.
Believe me there and more cash buyers out there than you think, you just need to find them.
4) Assign you Contract
Once you have found a cash buyer you will want to assign your contract to this buyer. All you need to do is have an assignment form, fill out the form, put in your wholesale fee, and then sign it.
An assignment of contract simply assigns your right to buy the property to someone else and then you are not liable for the property.
5) Start your title work
Some people say that you should start the title work right when you put the house under contract but I like to have a buyer first, that way to can take the contract, assignment and everything to the title company together. And because you will not always find a buyer for every deal you will sometimes have to cancel your contract. If you have started title work you may have to pay for what they have done.
The title company will do everything that needs to be done from this point on, they will set up the closing and make sure the funds are in place.
6) Collect your Check
All you do now is sit back and wait for your check. Wholesaling real estate is not as hard as you thought. Sometimes you will want to check in with your buyer and seller to make sure everyone is happy.
What else should you know about flipping houses?
Flipping houses is not as hard as you would think; all it takes is a little bit of time to educate yourself and to market your business. Right now wholesaling real estate is the best house flipping strategy to use.
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