Knowing the Proven Methods for Assigning Properties and Assigning Real Estate
Written by Author on February 7th, 2009There are many definitions that people refer to for flipping. Some mention it as actually getting a loan for a property, then quickly fixing it up to resell it. This is a strategy you can apply but there are also many financial risks that can be an issue, particularly in flat or lingering real estate markets.
When we mention flipping, we are talking about securing homes at a discount and then assigning (or flipping) them to another buyer for a fast profit. When we refer to real estate wholesaling, we are basically referring to finding properties inexpensively and assigning them inexpensively to another person or rehabber; thus the term wholesale. For further explanation on jargon, when you flip a property to another rehabber, this just means you are passing on the right to them to close on the home directly from the home owner.
Once you get a home under contract, you will have control. Then you can flip it to another investor at a higher price or for a flat fee so they can close on it. They take your place in the agreement, then close on the home, are responsible for repairing it and either keep it or sell it to an end buyer for retail price. A real estate system like the one created by Matthew Sorensen is a great no risk way to create quick profits using little or no credit 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 system especially once you have a constant program working for you!