Recognizing the Time Tested Methods for Assigning Properties and Assigning Real Estate
Tuesday, January 5th, 2010There are different definitions that people refer to for flipping. Some refer to it as actually buying a property, then quickly repairing it to resell it. This is something you can apply but there are also more financial risks that can be an issue, particularly in flat or stagnant real estate markets.
When we discuss flipping, we are talking about tying up houses cost effectively and then assigning (or flipping) them to another buyer for a speedy profit. While we mention real estate wholesaling, we are basically mentioning finding homes inexpensively and assigning them at a discount to another individual or rehabber; thus the term wholesaling. For more clarification on jargon, when you transfer a house to another individual, this just means you are providing the right to them to take ownership of the house directly from the owner.
Once you get a property under contract, you will have control. Then you can assign it to another investor at a larger price or for a flat fee so they can take ownership of it. They take your place in the option, then buy the house, take care of fixing it up and either keep it or sell it to another person for full price. A program like the one developed by Matthew Sorensen is a great no risk option to create quick profits using little or no cash or other financing techniques.
Since you have neither of these limitations you can also do as a many as you want making real estate wholesaling a great cash flow strategy especially once you have a reliable revenue model working for your team!
