subject: How To Flip A House: Rehabbing And Wholesaling [print this page] Flipping houses is one of the most common ways to make money in real estate. With the right system in place, it is easier for a real estate investor to generate quick and huge profits by buying and selling properties.
Want to start flipping houses but dont know where to start? Dont fret because this article will teach you two ways on how to flip a house.
The first one is called rehabbing. Also known as fix and flip, this method of flipping properties involves the purchase, the renovation, and the eventual sales of a property. When doing a rehab project, most real estate investors prefer distressed properties or those that are in bad shape because they can be purchased at very low prices. However, just because an undervalued house comes with a low price tag, it doesnt necessarily mean that a rehabber will go for it. What a rehabber looks for a distressed property aside from its affordable price is its high profitability and marketability.
It usually takes about three months to complete a fix and flip project. But if the property needs fewer repairs, a rehabber can finish the rehabbing process in just a short time. Return on investments, meanwhile, are significantly bigger as compared when doing a conventional flip (i.e. the investor just sells the property without doing the repairs).
The second method on how to flip a house is by wholesaling. Wholesaling involves the process of placing a property under contract and then finding a buyer for that contract. In a nutshell, the wholesaler serves as a middleman between a seller and a buyer. And instead of flipping the property itself, you could say that the main job of a wholesaler is to flip contracts.
This method of flipping properties is said to be mostly suited for newbies in the real estate investing business. Because a wholesaler is not required to buy the house to be wholesaled, he doesnt need a huge startup money or to borrow funds from lenders. And although doing a wholesale pays less than rehabbing properties, a real estate investor can still earn huge money is he can close multiple deals in a single given time. Because unlike doing a rehab, a wholesaler doesnt have to wait three months just to move on to the next deal since he can place multiple properties under contract in one month.
