flipping property is not for everyone, but it is the fastest way to make money in the real estate business. Most everyone has heard of someone buying a “run down” house for a good price far below market value, fix it up and sell it at a fair market price. Tossing a “fixer-upper” is a sure way to make a reasonably quick profit. I know some people who do it this way, but they are more in the contractor and renovation company than they are of the investor mindset.
Some of these ‘fixer-upper’ properties are in need of extensive repair and will include electrical work, carpentry, etc. If the investor gets involved and makes all or part of this work there would be enough profit there but if the investor farms from the necessary labor, profits could quickly get eaten. For these types of flipping real estate investments, the purchase price should be at a huge discount and normally would be found somewhere in the foreclosure stage.
For the person who invest in the city mentality than in the renovation business than flipping real estate will only involve flipping the paper contract of the home, without even taking possession. You can browse by entering into an agreement to buy a house than to sell the contract to another investor after the close of escrow.
Using this technique will not even require you to put your name on the title. The gain will generally be smaller than the fixer investor, but it involves much less work, and the entire process is much faster. A fixer-upper investor would not like to work on renovations in making a profit of several thousand dollars for a few months, but an investor who would like to turn over a contract for a few hours or days of work.
Avoid disclosing your profits to the new buyer with a double closure.
After making a sweet deal and flipping a contract with a juicy profit you might not want all this information to be revealed your buyer. The solution is a double closing, transferring the property to you at first and then by selling directly to the office of the same lawyer only one hour later to the buyer.
There is a drawback here, which is a double set of closing costs so you would have to weigh it to see if it’s worth your specific situation or not. Furthermore, you can use a title insurance company for the actual closures. For the issuance of title insurance, title insurance, the final document
to prepare and close the transaction usually costs without an addition.