Reiwired: Profiting By Flipping Houses To Motivated Sellers
Flipping houses is considered the easiest form of real estate investing by many. But did you know that you can even make it easier? All you need to do is start flipping houses to motivated sellers.
First, lets make sure that we have the same definition of terms. Flipping houses, which is also known as wholesaling houses, is simply placing a property under contract to buy it. However, you will not personally purchase that house. That doesnt mean that you wont keep your part of the deal. As a wholesaler, it is your role to look for a buyer for that property. That buyer will purchase the property and you will get a fee for finding it for him.
This is why flipping houses is considered the entrance to the world of real estate investing. You can invest in real estate without having to spend huge personal money. You wont need it because you wont buy properties; you only place them under contract.
Now that were clear with that, lets proceed with motivated sellers. These are the people who will make your career much easier. If your seller, or simply the owner of the house you are going to buy, is motivated, you will be in a better position to dictate the price of the property. These owners hardly care about the price you will offer them. What matters to them is that selling the property fast rather than high.
If you are able to convince the owner to sell the house at a lower price, then youll get a larger assignment fee, or the fee you get for assigning the contract to the end-buyer. For example, if a distressed property is actually worth $50,000, you might get it for just $40,000 if the seller is motivated. You can then sell the property for around $55,000, with the buyer thinking you pocketed around $5,000. In reality, you earned $15,000 because you were able to dictate its price. You get to earn more with motivated sellers without exaggerating the price of the property.
There are various reasons why owners of properties become motivated sellers. The first is because they are struggling financially. Many people seek to let go of their properties when caught in dire straits. They consider selling the house and then renting an apartment or a room as a wise financial strategy especially if they can no longer pay mortgage or if they have urgent debts to settle. Some people tend to sell their property when see that they wont be able to fund repairs. Others are motivated because they are recent divorcees and they need money to start anew.
So whenever you look for houses, prioritize those that are owned by motivated sellers and make your flipping houses career much easier. Want to know more about this business? Simply go to REIWired.com today.
by: Daniel Mc GreyAbout the Author:REI Wired is the pinnacle of real estate education by serving high-quality content through high-quality videos. Sign up only takes a minute and you can start right away! Learn More