3 Ways to Make Money when Flipping Houses for Profit

Flipping houses for profit is considered one of the basic ways to make money in real estate

. In a nutshell, this real estate investing niche simply involves the process of buying and selling houses to generate income.

Although it may look simple at first glance, there is more to the process of flipping properties aside from buying and selling properties. In fact, there are three ways to flip a house. Here's a quick look at the three exit strategies mostly used by real estate investors who are engaged in this method of investing in real estate:

Contract assignment. Popularly known as wholesaling, contract assignment is the technical term used by investors when they are giving up their rights to buy a property to another person. Instead of putting their names on a property's purchase contract, real estate investors write another person's name usually, the end buyer's on the written agreement and the latter will buy the property from the seller in their stead. Once the process of contract assignment is complete, the investor or the wholesaler will get an assignment fee as consideration for the right to do an assignment of contract.

Double closing. A double closing occurs when the investor actually takes title to the property before reselling it. In this method of flipping houses for profit, you, as the investor, will buy the property from the home seller before flipping it to your end buyer. This means that your name, or the name of your company, will be written on the title regardless if you resell the house on the same day or a month later. A double closing is mostly used on properties that have a "non-assignability" clause attached to their contracts. A good example of such properties would be bank owned homes or REOs (real estate owned).

Fix and flip. In this method of buying and selling properties for profit, real estate investors add value to an undervalued home by repairing and renovating it. Some flippers call this process "rehabbing." Those who fix and flip houses usually purchase properties that are in bad condition, i.e. dilapidated houses, because they are being sold at very low prices. Once the renovations are complete, the investors sell the rehabbed home at a price close the property's full market value.

If you want to learn more about flipping houses for profit or is simply looking for properties to flip, go to www.RehabList.com.

3 Ways to Make Money when Flipping Houses for Profit

By: Lawrence Jones

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