Are you tired of making peanuts from a lousy job? Join the real estate business and start flipping houses. Though people choose different ways to make money, flipping houses is a sure way of earning quick cash so that they can retire early. You don’t need a great credit rating or a lot of capital to start flipping houses.
People make millions from real estate every day and flipping houses is one of the most profitable sectors. It goes beyond buying a home and upgrading it. The secret lies in purchasing the property at a low price and selling it high. To succeed from the business, you only need to bring together a motivated seller and a buyer willing to purchase property using cash. The following techniques should help you succeed in the business.
Get the right seller and buyer
Your aim should be to find a distressed seller and connect them with a cash buyer. Choosing a cash buyer is mandatory when flipping houses since you need the transaction to close fast for you to make profit quickly. If you have rich friends already in the real estate business, make use of them to flip houses.
You can also use marketing methods to identify the right buyers. Try running Facebook ads or doing a webinar to connect with the right investors. If you don’t have a lot of time, analyse some country records to help you identify the relevant buyers.
Once you have identified buyers from country records, send out letters to them introducing yourself and laying out your intentions. Developing a lasting relationship with buyers can help you close multiple deals in time. If both the seller and buyer are ready to close the deal, you can quickly flip the contracts.
Find the right markets
Identify the markets when cash buyers are investing their money in. If you find the right markets, you can easily sign a contract to buy a home then flip it to a cash buyer. Your local market may not be the best at the moment, but some research can help you find a hot market in another state.
Get the right price
This is what helps you make money from flipping houses. Apart from the price you pay for a real estate property, you need to estimate how much money a cash buyer will pay to purchase the property from you. You can do this by estimating the retail price of different properties and identifying the mark-up gap.
Work with the right property
You can search online for different real estate properties. Consider vacant homes and do not overlook distressed homes. Homes that are about to be repossessed are a gold mine in the business. Think about purchasing a home that is about to enter foreclosure then sell it to a cash buyer.
Make use of retail channels to find the right property. You can get help from real estate agents or even from talking to people such as neighbours and friends. When you get free time, attend PTA meetings and interact with different people.