Whether you are geared towards long-term goals or short-term goals, real estate investment is one of the less risky investment areas. If you want to profit from real estate investment, flipping a house for cash can be a good option. Flipping a house for cash is a way to make profits from real estate investment in a short period of time. If you are just starting out, flipping a house can be a great way to get started.
You might be a real estate agent, a property broker or just a common investor, you can make money by flipping a house in three ways. Based on your knowledge of real estate business, funds you have at your disposal, and your risk-taking ability, you can use any of these three house flipping methods.
Flipping a House for Cash Through Retailing
You buy an old and dilapidated house. You renovate the house and make it ready to move in. You add cost price, renovation charges and your profit, and list the house for sale. When the house is sold you not only recover your investment but also make profits. However, you need to remember a couple of things. First of all, you need to buy the house when the market is down and sell when the market is high. You also need to make sure that the house still has years. Normally, a house has 40 years of age. When you flip a house through retailing method, you will make profits in short time. However, you need to make sure that house does not require massive fixing.
Flipping a House for Cash Through Wholesaling
You can also flip a house for cash through wholesaling method. You buy a house then resale it to a real estate company or agent. In this method, you don’t spend money on renovation. You just buy a house and then sell it to an investor. This method is fast, but you will not make big profits. In order to make profits by flipping a house through wholesaling method, you need to find a house that is in high demand. You also need to find a real estate company or property investor willing to buy the house. To get started, you must know the real estate market thoroughly. You must be acquainted with property dealers in your area.
Flipping a House for Cash by Assigning the Purchase
When you are flipping a house for cash by assigning the purchase, you are not actually buying the house. You find a house, you commit to buy it but you are not closing the deal. Instead, you find someone to buy the house. The deal will be closed by the actual buyer. When you are flipping a house for cash by using this method, you are basically working as a property broker. Since you are not buying the house, you don’t need large funds to get started.
Flipping a House for Cash: Dos and Don’ts
- Find a house that is likely to get sold.
- Try to keep your investment as low as you can. High priced houses are difficult to sell.
- If you are flipping a house through retailing and wholesaling, be prepared to hold the property. Sometimes it may take months to sell the house.
- Before you buy a house, get it inspected and calculate the actual cost.
- Don’t buy the house from a real estate agent or property broker, instead, buy directly from the house owner.
Making Money by Flipping a House
If you want to enter the real estate market, house flipping can be the starting point. You can make good profits by flipping a house. However, before you break into the house flipping business, you need to understand the estate market. When you are flipping a house through the first method, you need to know about house restoration. If you want to flip a house through the second method, you need to know about property dealers. The first and second methods require a big investment. You may even have to hold the house for a long time. You don’t need investment for the third method and you can get started even if you don’t have any money.