How to Flip Houses for Profit?
When flipping houses, real estate investors are buying properties for a low price, fix it up and resell it to make twice the profit of how much they originally bought it for. Actually, this is a great strategy if you’ve got the cash and do not care waiting for 3 months or more to have it sold. If you are rooting into this sort of investment, then you should make yourself aware of the following tips.
Tip number 1. Find a cheap property – you are sure to find sellers out there given the way how our economy and real estate market goes. Sellers are motivated for a number of reasons like foreclosure, inheriting unwanted property, financial troubles, divorce and so forth. If you’re into flipping houses, then you should look out for these people and send them a letter telling how you can help them. In addition to that, you will find tons of leads over the internet.
Tip number 2. Practice your negotiation skills – since motivated sellers want to sell their house fast and put all their problems behind, it puts you in a great position to negotiate if there’s equity in the deal. After negotiating for the price, perform a bit of analysis to ensure that the property is truly a great deal for contracts. Filling out these contracts are very simple but it can be confusing so you better ask your local realtors to help you.
Tip number 3. Find yourself an investor buyer – when you are dealing with investors, you have to work with cash house buyer companies. Such companies are investors who are willing to close the deal with cash and thus, you don’t need to go to banks just to apply for loans. Flipping houses with cash makes the whole process go smoothly and fast.
On the other hand, you may wonder on where you could find cash buyers. The truth is, it’s quite simple as you can find them in foreclosure auctions, networking events or local real estate investors association.
Tip number 4. Assign the contract – as soon as you found your cash buyer, you want to assign them a contract. All you need to do here is get an assignment form, fill out the fields, enter your wholesale fee and then sign it. The assignment of contract is assigning your right to buy that property to someone else and then you’re not liable for that property.
Tip number 5. Start with the title work – in this regard, it will be recommended to go to a title company to carry out the process on your behalf.