How To Flip A House - The basics

There are quite a few people asking "How to flip a house". Specially during these times, when there are a lot of homeowners selling their properties, it is a good idea to learn real estate investing and how to flip a house.

House flipping is basically the act of buying a house at a low price then selling it as soon as possible at a higher price. These is the gist of how to flip a house. There are of course other things you will need to learn to be able to do this correctly.

Here are the methods used to flip a house and make a profit in this very lucrative business.

The first method used to flip a house is buying a house that needs some repairs, and then investing on the repairs. This is called "retailing". You are responsible in identifying a house to buy that can be repaired and fixed up at a minimal cost. You then sell this at a profit after repairs have been done.

The second house flipping method is called 'Wholesaling". You buy a property that can be repaired at minimal cost but instead of having it repaired, you will flip this to an investor who will do the repairs and likewise flip it again to a homeowner. There is less risk in this method.

The method of house flipping with the less risk is called "assignment". In this method of how to flip a house, you merely find the property and secure an agreement for you to purchase. You do not close the deal but rather sell the right to make buy the house to another investor, who will be the one to ultimately buy the property from the owner.

Real estate investing is a very lucrative business, and there are even ways to invest without using your own money. Find out how this is done in Australia. Watch free videos and sign up for free dvd's here.

The different methods mentioned above on how to flip a house have different levels of risk and profit. The higher the risk, the higher the potential for profit.

Learn correctly how to flip a house, and you will find yourself gaining wealth faster than with other investments.

How to Flip A House - Contractors

One of the essential contacts you need when learning how to flip a house is a network of contractors. You will need them when you start investing and learning how to flip a house.

Why is this needed you may ask. As mentioned in a previous post, you will need to buy property that is priced lower than market value. Most of the time for homeowners to even consider selling at this rate, the property will be needing a bot of fixing up, remodeling, or a certain amount of repairs.

You can of course sell this as wholesale or assignment, but there may be instances where you will need to make some repairs yourself. You may even want to retail the property for higher profits.

When you have your own contractors who can do this for you, you are at an advantage. You will know how much to buy as you will have easy access to repair costs and other costs that may be involved.

How To Flip A House - Wholesaling

When starting to learn how to flip a house, it is suggested to start with low risk real estate opportunities such as Wholesaling.

Wholesaling is when you buy a house, pay for it and sell it immediately to another investor. Yeah, another investor! Why would you want to do this? Let me tell you why.

Not all investors have the time, resources or businesses built to search for potential properties for them to invest in. Investors also employ different investing models. Some of them may be in real estate for buy and hold opportunities, while others may be looking for buy and sell opportunities. Some flip houses, some use the property for their own use, or some buy expecting prices to go up (speculators).

You knowing who the investors and what type of opportunities they are looking for will give you a better idea who you can turn to to sell your real estate find and sell to them at a price where you profit and yet they will still have enough room to profit themselves.