Many beginning real estate investors get started by flipping real estate to make quick cash. If you would like to make more money by investing in real estate, you need to know a few essentials.
Simple definition: Buying property and reselling quickly, hopefully for a great profit. Usually, people think of flipping houses, or the buying and selling of a home fast, as the only way to make money flipping real estate. However, some investors specialize in other types of real estate such as land or strip centers.
Some confusion arises over the process of making money flipping property. People who specialize in finding bargain real estate, obtain a purchase contract, and then sell the contract before taking title to the property are known as “Bird Dogs.” These beginning real estate investors get started with no money down by:
Flipping real estate isn’t illegal. However, many unscrupulous investors commit mortgage fraud to make fast money. Some of these investors, working with mortgage brokers and appraisers, resold houses to unqualified buyers inflating the property value and home buyer’s qualifications. Often these home purchases had no money or little money down. When these new home owners defaulted on the mortgage payment, the mortgage lenders lost money because the house wasn’t worth the inflated purchase price. To avoid legal problems in real estate flipping, don’t commit mortgage fraud.
Yes, you can make money flipping real estate. Buy low, sell for full-market value, avoid mortgage fraud, and enjoy your profits!