Flipping Houses as a Real Estate Bird Dog – Training Lesson 29

In general, the term “flipping houses” just means buying a property and then reselling it in a quick time period (from a few weeks to a couple of months).

House flipping mostly refers to the skill of buying and selling properties as a money making strategy to make a quick profit.  Because it involves buying a property this is not something that a Real Estate Bird Dog would do until they have learned a lot, plus the risk is higher.

A variant of flipping houses is rehabbing.  This involves purchasing a property that requires some work, then fixing it up for the resale. This involves even more risk because you need to know how to estimate repairs AND get the work done quickly so you don’t have to make a lot of loan payments etc. while you are holding the property.

You could sell the property at a discount to another investor, or place it on the retail market for someone to purchase as a home. This method offers higher profit potentials. You could earn anywhere from $20 to $100,000 on a single property depending on your market, how good you are at finding a bargain, and how well you manage repairs done to the property while controlling your costs.

However, flipping or rehabbing houses is a lot riskier than just locating the properties for investors. You take a bigger risk because you have to put up your personal money to take control of the property and title. You will often have to put up an earnest money deposit to secure the deal. With retailing, you will have to put up your own money to cover involved repair costs and carrying costs to cover the mortgage payments, taxes, and insurance. Other risks for retailers involve losing money on the deal because you’re either paying too much for the property or you underestimated repair and/or holding costs. So be careful and conservative.

Tagged with: flipping houses

Filed under: Flipping - Wholesaling

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