House Flipping for Beginners
I found a good introductory article by Jackie Lange on house flipping. Here’s the beginning:
If you’re just getting started in real estate and need to build your confidence and knowledge before moving on (but still need to make some extra cash), I suggest you start with flipping contracts (house flipping).
By flipping houses, you’ll be able to earn while you learn the ropes in real estate, and you don’t have to worry about risk if you do it right.
What is house flipping? Very simply, it’s contracting to buy a property, then selling your right to buy to a third person. And yes, it is perfectly legal in all states.
A “quick flip” example
Here’s an example of how house flipping might work. You find a house that is run down and vacant; there’s no for sale sign in the yard.
Through persistence and a little detective work, you locate the owner and negotiate a “risk-free” contract to buy the property at 50% below the after repaired value with a very low earnest money deposit ($10).
You contact an investor who rehabs houses in the area, offer to sell him the house for $3,000 more than your contract amount. When he agrees, you fill out a one-page “Assignment of Contract” form and get $500 in earnest money.
A few days later, the transaction closes at a title company or an attorney’s office, and you get a check for $3,000 PLUS your $10 earnest money.
A word of caution . . .
You’ll need to be very persistent–it’s NOT always easy. Some months you may find two, three, or more houses you can flip. Other months you may not find any.
You’ll constantly develop new leads. Some leads will work out; some won’t. Some sellers will be very motivated, and some won’t. But remember, that time has a way of changing everything. You must learn to stick with it, even when you are discouraged.
You can read more here: http://www.creonline.com/house-flipping-tips-for-beginners.html#ixzz3S8D55Dqk