Flipping real estate contracts can be a great way for new real estate investors to turn profits without assuming the typical risks associated with buying and selling real estate. You're merely finding properties, locking in a sales price with the current owner and reselling that right to another investor to buy the property at the price you locked in.
By flipping real estate contracts you never own the physical property, so you don't have to worry about rehabbing or holding costs. Of course this is attractive because you assume no risk.
How do you start out?
Keep in mind, when flipping real estate contracts the best place to start is with a buyer of your contract.
Finding a hot property with a motivated seller and NOT having a buyer or network of potential buyers for your contract will seriously delay or destroy your profit potential.
Lining up a good network of professionals that can quickly convert your deals into cash should be your first priority.
Ways to find buyers
Locate a real estate investment club
A great opportunity to meet investors is at foreclosure auctions. Most of these investors are cash buyers who prefer not to do the legwork
Advertise on free online sites for buyers
Advertise by making flyers putting them on bulletin boards
Advertise by making bandit signs
Having a buyer ready for your contract is just as critical as finding that great property.
Flipping real estate contracts can be a great way for new real estate investors to turn profits without assuming the typical risks associated with buying and selling real estate. You're merely finding properties, locking in a sales price with the current owner and reselling that right to another investor to buy the property at the price you locked in.
By flipping real estate contracts you never own the physical property, so you don't have to worry about rehabbing or holding costs. Of course this is attractive because you assume no risk.
How do you start out?
Keep in mind, when flipping real estate contracts the best place to start is with a buyer of your contract.
Finding a hot property with a motivated seller and NOT having a buyer or network of potential buyers for your contract will seriously delay or destroy your profit potential.
Lining up a good network of professionals that can quickly convert your deals into cash should be your first priority.
Ways to find buyers
Locate a real estate investment club
A great opportunity to meet investors is at foreclosure auctions. Most of these investors are cash buyers who prefer not to do the legwork
Advertise on free online sites for buyers
Advertise by making flyers putting them on bulletin boards
Advertise by making bandit signs
Having a buyer ready for your contract is just as critical as finding that great property.