Real Estate Flipping - Is Flipping Real Estate the Smartest Way to Get Started i

Posted by steve Willam on April 19th, 2021

In the last couple years, you and I have been hammered on TV utilizing real estate flipping shows that depict these people making outrageous yields flipping homes and making it look easier than daylights.

So, is this flipping stuff real? Well... it absolutely sure is. There are countless people out there making a darn good being flipping homes. But... the tv shows on flipping happen to be darn deceiving when it comes to the "reality" of real estate flipping.

Is flipping real estate the best way to get starting in real estate investing courses? I'll let you decide for yourself. However, in my opinion, for most people, specifically in today's down markets (not all markets are off... there are actually some doing really well), real estate flipping just the best way to get started in real estate investing.

Here's why:

First, discussing clarify two kinds of flipping.

The Fix and Reverse - Where you buy real estate, rehab it, and sell it again to a retail buyer. The kind that is on the TV shows.
The main Wholesale Flip - Where you buy real estate (or ensure it is under contract), find a wholesale buyer and flip the main contract. The kind that is less glorious... but has an overflow of money in it... with a heck of a lot less associated risk.
To me, the Fix and Flip method are not for all newbies... even though that is the kind of real estate investing you see on TV at all times.
Why?

You need a good understanding of rehab real estate investing
You need to have wonderful funding... either from a private lender or a bank (private lender is preferable)
You need to be able to float the keeping costs if you can't sell the property quickly
If you don't calculate your company's costs just right... there may not be a whole lot of room for malfunction... and room for error means greater risk on a person!
The market is in a downturn... so there are less list price buyers out there for middle income houses... which is everything that most people start out flipping
There are many people out there making a very good experiencing flipping... but most of them started several years ago... and have many flips under their belts.
They already have systems down, have online marketing channels for getting buyers, have solid lending sources, and so on Not to say that new real estate investors cannot do all of the earlier... YOU CAN!

But , there are better ways to get started in real estate investing where you can get in with little or no risk or money, and will help you to learn the Fix and Flip business before you ever in your life take a huge money commitment to do so.

What's the single ultimate way (in my opinion) to get started in real estate flipping to reduce your risk and shorten your learning curve... all the while making nice money in the process? Well... obviously option #2 from above: The Wholesale Flip - or in other words... wholesaling real estate, flipping houses for quick cash, flipping pacts, etc .

When you wholesale real estate you do everything a flipper would normally do... except actually repair the property promote it to a retail buyer. But , you don't have the risk or possibly time commitment that a fix and flipper has.

Primarily, you as a wholesale real estate flipper (or wholesaler meant for short), find properties that need work that you can purchase within a large discount and flip them for a fee towards a rehabber who will do the work.

Your job is to find the buildings, analyze the numbers to determine the repairs needed, create a proposal that enables both you and the rehabber that you will sell so that you can to make a profit, and sell the contract to a rehabber who'll actually make the repairs.