Flipping Properties

Flipping houses involves buying a property, renovating it, and selling it for a profit.

House flippers take homes that most homebuyers aren’t able or willing to renovate, and improve them to the point where they meet buyer demand. 

 When you get a property under contract, you own the rights to make money on that property even though you haven’t yet purchased the property, committed to anything, or opened yourself up to any liability.  This is why I love real estate—when you have a house under contract, you own the rights to a return on an investment before you’ve made the investment. 

 Hunt for a property that you can buy with a traditional bank loan (or a hard money loan). Rehab the house and sell it. 

 This is sometimes called owner financing, land contract deals, lease option, rent-to-own and purchase for deed. This is a situation where you own or have equity in a property and instead of renting the property out, you sell the property to someone and they make monthly payments directly to you for the house.

 Whenever you list a property for sale, you will get calls from folks who are actually looking to buy. These are leads. Once you figure out who gets your house, you can sell the rest of the leads to a real estate agent. 

 When you buy a house, you know what you have. The value is tangible, and doesn’t require interpretation by algorithms or Wall Street traders. Or, as Financial Samurai puts it, “every physical real estate investment you make puts you in charge as CEO. As CEO, you are able to make improvements, cut costs (refinance your mortgage now that rates are back down), raise rents, find better tenants, and market accordingly.” The more direct control you have over your investments, the better.