March 2nd, 2010 Knowing the Right Methods for Flipping Houses and Assigning Real Estate
There are different definitions that people discuss for flipping. Some talk about it as actually purchasing a property, then quickly repairing it to resell it. This is a strategy you can implement but there are also more financial risks that can be a concern, particularly in flat or stagnant real estate markets.
So while we talk about flipping, we are talking about securing houses at a discount and then assigning (or flipping) them to another buyer for a quick profit. While we discuss real estate wholesaling, we are basically mentioning finding houses cost effectively and assigning them inexpensively to another individual or rehabber; thus the term wholesale. For more explanation on jargon, when you transfer a home to another rehabber, this just means you are offering the right to them to purchase the property directly from the seller.
After you get a house under contract, you will have control. Then you can pass it on to another individual at a higher price or for a flat fee so they can purchase it. They take your place in the agreement, then buy the property, handle rehabbing it and either keep it or sell it to another person for a larger price. A method like the one developed by Matthew Sorensen for real estate investing is a great no risk system to create quick profits using little or no cash or other financing 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 reliable revenue model working for your team!