Properties Flipping – Is Flipping house for sale bangkok the smartest way to get moving in real estate investing?
“Flip This House”, “Flip That House”, “Property Ladder”,… and on and on…
Over the past couple years one and I have been hammered on TV with real estate flipping ensures that depict these people making outrageous profits flipping homes in addition to making it look easier than heck.
So , is this turning stuff real? Well… it sure is. There are a multitude of people out there making a darn good living flipping homes. Nonetheless… the tv shows on flipping are darn deceiving in regards to the “reality” of real estate flipping.
Is flipping property the best way to get starting in real estate investing? I’ll let you opt for yourself. However , in my opinion, for most people, especially in today’s down areas (not all markets are down… there are actually some executing really well), real estate flipping is not the best way to get started around real estate investing.
First, let’s clarify two styles of flipping.
The Fix and Flip – Where you invest in real estate, rehab it,
and sell it to a retail shopper. The kind that is on the TV shows.
The Wholesale Flip aid Where you buy real estate (or get it under contract), choose a wholesale buyer, and flip the contract. The kind which can be less glorious… but has a ton of money in it… by using a heck of a lot less risk.
To me, the Correct and Flip method is not for most newbie’s… even though which is kind of real estate investing you see on TV all of the time.
You need a decent understanding of rehab costs
You need to have good funding… either at a private lender or a bank (private lender is preferable)
You need to be able to float the carrying costs if you can’t peddle the property quickly
If you don’t calculate your costs just right… now there may not be a whole lot of room for error… and room regarding error means greater risk on you!
The market is in your downturn… so there are less retail buyers out there intended for middle income houses… which is what most people start out tossing
There are many people out there making a very good living flipping… but most advisors started several years ago… and have many flips under their devices.
They already have systems down, have marketing channels for getting prospective buyers, have solid lending sources, etc . Not to say that innovative real estate investors cannot do all of the above… YOU CAN!
But , one can find better ways to get started in real estate investing that allow you to get in with minimal risk or money, and will allow you to learn the Resolve and Flip business before you ever take a huge capital commitment to do so.
What’s the single best way (in my opinion) to get started in real estate flipping to minimize your risk plus shorten your learning curve… all the while making nice currency the process? Well… obviously option #2 from above: The Below wholesale Flip – or in other words… wholesaling real estate, flipping dwellings for quick cash, flipping contracts, etc .
When you from suppliers real estate you do everything a flipper would normally undertake… except actually repair the property and sell it to a retail industry buyer. But , you don’t have the risk or time commitment that your particular fix and flipper has.
Basically, you as a low cost real estate flipper (or wholesaler for short), find homes that need work that you can purchase at a large discount and even flip them for a fee to a rehabber who will the actual work.
Your job is to find the properties, analyze the volumes to determine the repairs needed, create an offer that enables both you and the rehabber that you will sell to to make a profit, market the contract to a rehabber who will actually make the auto repairs.
Often times real estate investors will make between $2, 000 and 20 dollar, 000 on a wholesale deal. So , for a low to be able to no risk way to get started in real estate… there are substantial profits to be had.
Another reason for starting out doing wholesale real estate property deals is that you learn the ropes of what it takes as being a rehabber. After analyzing several deals and talking to rehabbers to find out what they look for… you will have a good grasp on what a deal is, how to accurately estimate repair costs, who the exact rehabbers use as contractors, etc .
So , you actually earn a living while you are getting a hands on education on real estate flipping together with rehabbing.
Anyhow, I didn’t start out to write this article for you to scare you from the fix and flip mindset. You will find good money in it…
My motivation to write this article is that will help guide new real estate investors away from the glorified version with rehabbing that is plastered all over TV… and point a person toward what I believe to be the best way to get started in bulk reo.
I have something to confess… I may be a bit of a faux… but I didn’t start with wholesaling. I actually started by using buying income properties. But , with today’s markets… wholesaling real estate is the way to go to get your feet wet and make quite a few serious money in the process.
There is much more to real estate wholesaling and wholesaling real estate than the TV “reality shows” exhibit. One of the best ways to learn the ropes is to learn from someone who does this amazing timepiece everyday and makes a solid living doing it.
Go to your local REI club and
hook up with an experienced mentor
Go out on your own trying to hack it yourself with no instruction (not advised)
Pick a quality, step by step multimedia course that walks you by having a – Z on the exact blueprint that successful bulk suppliers and real estate flippers use.