[CentOS] United Built Homes, Flipping Real Estate or Flipping Paper?

Super Star

candyshop999 at gmail.com
Fri Jan 4 10:20:41 UTC 2008


United Built Homes, Flipping Real Estate or Flipping Paper?

Flipping real estate properties is not for everybody but it is the fastest
way to make a buck in the real estate business. Most everybody has heard of
someone buying a "run down" house for a good price well below market value,
fixing it up and selling it at a fair market price. Flipping a "fixer-upper"
is definitely one way to turn a reasonably quick profit. I know some people
who do it this way but they are more into the contractor and renovation
business than they are of the investor mindset.

Some of these "fixer-upper" properties are in need of extensive repair and
will involve electrical work, carpentry work, etc. If the investor gets
involved and does some or all of this work then there could be enough profit
there but if the investor farms out the required labour, profits could get
eaten up quickly. For these types of flipping real estate investments, the
purchase price needs to be at a huge discount and normally would be found
somewhere in the foreclosure stage.

For the person that is in the mindset of investing rather than being in the
renovation business then flipping real estate will only involve flipping the
paper contract of the property without even taking possession of it. You can
flip by entering an agreement to buy a property then sell the contract to
another investor before close of escrow.

Using this technique won't even require you to put your name on the title.
Profits will generally be less than the fixer-upper investor but involves
much less work and the whole process is much quicker. A fixer-upper investor
would not be happy in making a profit of a few thousand dollars for a few
months work on renovations but an investor that can just flip a contract for
a few hours or days work would be.

Avoid disclosure of your profits to the new buyer by using a double closing.
After making a sweet deal and flipping a contract involving a juicy profit
you may not want all these details to be revealed to your buyer. The
solution is a double closing, transferring the property to you initially and
then reselling immediately at the same lawyer's office just an hour later to
your buyer.

There is a drawback here and that is a double set of closing costs so you
would have to weigh it out to see if it's worth it to your particular
situation or not. Further, you can use a title insurance company for the
actual closings. For the issuance of the title insurance policy, the title
insurance company will prepare the closing documents and close the
transaction usually without an addition charge.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.centos.org/pipermail/centos/attachments/20080104/079f6391/attachment.html>


More information about the CentOS mailing list