subject: Reiwired - Flipping Houses: The Basics [print this page] Flipping houses is fairly simple. In fact, anybody can do it, even those who didnt complete their college education. The secret to making it big in this business, meanwhile, is simply knowing what you do and taking advantage of the tools and opportunities that come your way.
In the language of real estate investors, the term flipping refers to the process of buying properties with the intent to sell them for profit. Although some people believe that flipping houses is against the law, there is absolutely nothing wrong with purchasing an inexpensive house and then selling it at a higher price. This type of real estate investing becomes illegal only when you commit mortgage fraud to generate a bigger income.
There are two common ways to flip properties. The first one is called multiple investor flipping. In this setting, a real estate investor buys a property at a discounted price and then sells it to another investor. The latter is then expected to sell the property again to another buyer, who will either use the house as his residence or make money from it.
The second method is called fix and flip, which is also known as rehabbing houses. In this type of flipping, a real estate investor purchases an old property or a handyman special at a very low price. Once the purchase is complete, he will repair and renovate the house before selling it at a price near the propertys full market value.
Like what was mentioned before, your main weapon for success is knowing what you do. Therefore, it would be wise to educate yourself about the nuts and bolts of flipping houses so youll have an idea on what you should do in case a good deal comes your way. Also, you wont find yourself in the dark in case something goes wrong with a particular investment.
Having a trusted mentor by your side can also make a difference. By asking a veteran real estate investor to guide you, you can easily make decisions and accurate moves that can give your real estate investing business a big boost. So if you know someone who has years of experience in the real estate business, then you better ask him or her to help you out.
Meanwhile, for you real estate education needs, theres www.REIWired.com. The website has a wide collection of articles, audio files, and videos on flipping houses and investing in real estate.
by: Daniel Mc Grey
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