You can certainly make money flipping real estate the first way described. More experienced investors can make money even when the situation may not work out quite as planned. This is yet another benefit to flipping real estate. If it doesn’t work out exactly as planned, there is always the option to lease option the property or rent the property out. The fact that there are options and that you are not stuck with a bad flip is definitely a benefit.

There are other angles such as flipping a home in foreclosure, which would consist of purchasing an undervalued property in need of work, repairing it, and putting it back on the real estate market at a higher purchase price. A flip of this type can yield large profits but it will depend on different factors whether this is the best approach for your situation. With extensive renovations this will often require more initial cash or financing to get the deal done. This is why these type of flips are most easily executed with homes that require minimal repairs and primarily just need cosmetic work completed.

Flipping homes can also have a positive effect on a neighborhood by the development and re-growth of a stagnant area. Renovated homes also draw new people to an area and encourage economic growth. While flipping presents exponentially large profit potentials, it also poses large risks if you actually take ownership of the property to rehab, so you want to take the right steps to protect yourself.

The more risk free option is flipping via contracts. This is also sometimes referred to as wholesaling or assigning properties. This is where you tie up a property at a discount (using an agreement) and then flip the contract it to another buyer or investor for a quick profit.

The benefits include it’s virtually risk free, there is no need for excessive cash or credit or financing, you are not taking ownership so there are no closing or holding costs and you do no repairs or work yourself. This is why when it comes to making quick cash in real estate, this real estate investing method is one of the best routes to take especially for real estate investing today.

By: Matthew Sorensen

About the Author:
Matthew Sorensen is a leading authority in risk free, creative real estate techniques. He has trained thousands of people with several large organizations.

You can visit his website at: http://creativerealestatehelp.com to receive more information on how to maximize profits safely for changing market trends.

With real estate flipping, the most you have to invest is an earnest money deposit. That is a big advantage over other forms of real estate investing. The downside? You have to spend a lot of time looking for deals.

Flipping has a couple different meanings in real estate investing, depending on who you ask. Some say any fast purchase and resale, even if it involves making minor repairs and improvements, as “flipping” a property. The more specific definition that many use defines flipping as simply buying and selling without ever actually taking possession of the property.

Can you make a profit buying and selling property without ever owning it? Yes. It is done commonly in some areas. It is a good way to use your real estate knowledge to make a profit when you have little money of your own to invest.

Flipping Real Estate – An Example

One night, at our local real estate investor’s meeting, an investor told me he recently found a fixer upper, but couldn’t arrange financing. He had an accepted offer, and there definitely was a profit to be made in improving the place and selling it. Fortunately, he had a financing contingency in the contract, so he would get his $500 earnest money deposit back. But he really didn’t want to pass up such a good deal. What could he do?

He found a way to make a profit without actually buying the property. There are always other investors at these meetings that are looking for a profitable project. One of them was willing to pay to take the original investor’s place. The original investor sold or “assigned” the contract to him for $6,000. Since all he ever had into the deal was a $500 “good faith” (earnest money) deposit, he made a $5,500 profit. This is “flipping”.

Notice that he didn’t need a down payment. He didn’t even have to buy the property to make money. There was enough potential profit in fixing and selling the property that other investors were happy to pay to take his place.

There are a couple important points here. First, this guy knew how to find a good deal. Then, he put in his offer the right to assign the contract to another investor if he wanted to. This is usually done by writing “or assigns,” “or my assigns” or something similar after your name as the buyer. Find out what the most acceptable language is in your area.

Some sellers may take issue with this. Simply explain that this is so you can bring in a partner if you want, or let your partner take your place. All the terms of the contract remain the same in any case. In fact, it means that if your financing isn’t approved, as in the above example, you will likely save the seller the trouble of finding another buyer by doing it for him.

Notice that you can do deals like this with no money down. In the example above, if the original investor had put the $500 deposit on a credit card, it truly would have involved none of his own money. Of course, that outrageous 3% cash-advance fee and 18% annual interest for a month would have reduced his profit by $22 or so. Obviously zero down is possible and profitable if you start by flipping real estate.

More About Flipping

Usually buyers of contracts will not pay you until the deal is closed. This is only fair, as there may be issues that show up during inspections, or other things outside of their control that prevent the deal from closing.

Although I use an example of a fixer-upper, any property that can be bought cheaply can be flipped. Even if bought at market value, the right buyer might pay you something to take your place. The main thing you need for real estate flipping is the courage to try it.

By: Steven Gillman

About the Author:
Copyright Steve Gillman. This article was an excerpt from 69 Ways To Make Money In Real Estate. Want to know the other 68 ways? Visit http://www.99reports.com/make-money-in-real-estate.html