| Flipping houses (also known as wholesaling houses) is | | | | Rehab cost estimate is a necessary part of |
| the quickest business model to make profits in real | | | | wholesaling houses. Most require rehab, and you must |
| estate investing. It is also the business model that | | | | consider this in the offer you make. I buy my houses |
| needs little to no money capital. | | | | for wholesale real estate below 65% of fair market |
| You can cash out of the deal in just two to three | | | | value less repair costs. A lower offer leaves more |
| weeks. Even though the profits are lower that other | | | | money on the table when I flip to wholesale buyers. |
| investing business models, you can make earn some | | | | 4) Make good offers that leave a profit and that get |
| good money flipping houses. You can easily generate | | | | accepted |
| $5000 to $10000 for each deal, with very little effort | | | | Making an offer is a crucial part of real estate |
| and work. It is typical to close 3 to 5 deals monthly on | | | | investing, probably the most important. When |
| a part time basis. | | | | wholesaling houses, you must allow a profit for the |
| In general, it is necessary to find houses below market | | | | wholesale real estate investor and for you. |
| value, the flip them to buyers with cash, most other | | | | Certainly, as long as you know the estimated |
| real estate investors. | | | | renovation costs and the after repair value after it is |
| I never rehab my wholesale houses, I leave this to the | | | | renovated, you will be able to make an offer that both |
| wholesale buyer. | | | | gets accepted and leaves enough cash on the table |
| To be successful in this business, here are a few tips | | | | for both you and the wholesale real estate investor |
| to follow. | | | | you flip the house to. |
| 1) Buy your houses at the right price | | | | 5) Identify people with cash looking for fixer uppers |
| You can find most rehab deals in the medium price | | | | Once you have a contract to buy, you must get a |
| range. In my investing market, this is houses under | | | | wholesale buyer with cash who will fix it and sell, or |
| $150,000. Some lender require you buy within a | | | | rent it out. It is necessary to verify the source of |
| predefined price range. Going too low could mean | | | | money before wholesaling your houses. A line of credit |
| buying in undesirable areas. Going too high can mean | | | | or cash in the bank is always preferable. This way, |
| few potential buyers to sell to. Speed and high | | | | you flip your houses fast and avoid tight lending |
| frequency are a must for successful wholesale real | | | | restrictions. |
| estate investing. | | | | Most importantly, I must get a reasonable |
| 2) Avoid bad neighborhoods | | | | nonrefundable earnest money before I flip my houses. |
| Most real estate investors target nice fairly priced | | | | 6) Cash out quickly |
| neighborhoods. Lower prices are always attractive, but | | | | With a ready source of cash, you can close your |
| ability to rent out the houses they buy is important to | | | | deals in 23 weeks including time for title work. Speed |
| most investors. As such, it is mandatory to target good | | | | and volume will them be easy to accomplish, hence |
| neighborhoods to be successful as a house flipper. | | | | making more profits. |
| 3) Estimate repairs accurately and quickly | | | | |