DennisKnows.com | Flipping houses for Dummies

First of, don't get all worked up because I called my article "Flipping Houses for Dummies". I felt like a dummy after learning this profession just because of how dumb my thought process was before learning it.

Wholesale real estate investing, better known as flipping houses, is so simple, once you learn it, I can almost gaurentee that you'll be mad you didn't learn this years ago.  This is how it works:

First: You, the "flipper", finds a great real estate deal with as much equity in it as possible. Now after finding the property, you have the sometimes, easy task of negotiating the terms (how much you would pay cash, inspection period, etc) and get the property under contract. By putting the property under contract, You now has control of the property, and the equity in the property.

Example: Imagine that you found a home owner that just lost their job and need some extra cash to get back on their feet. All they have is their home, a stick of bubble gum and an empty bucket of happiness. You don't want the gum, but you can bring about some happiness, so after finding out that the home is worth $100,000, you get him agree to sell his home for around $30,000. No. Wait.. Let's say $40,000. Now he's stayed in the home for years upon years so it's paid off which we in the real estate business call "Free and clear". When you hear this, it should bring a smile to your face like you just hit the lottery.

After negotiating the property for $40,000, you get the property under contract, and immediately go out looking for buyers. Cash buyers are the best so you put out some bandit signs in the general area of the home. You get 20 calls the next day because you have a $100k home on sale for $60k. That's 60 cents on the dollar (60% under market value). After you take the paper work to the title company and then they do their thing, they call you and tell  you to come pick up your check. You've just flipped a home and made $20,000 and all you bought was some bandit signs and paper to print out the contract. Time to flip another one now.

Now your not going to make $20k on every deal, but it's not impossible. My first deal was only for $2k (it fell through by the way; i'll explain later). There are investors who've made 50k in a month around the time when they first started. Flipping houses by far, is one of the quickest ways to get money and start a legitimate business or you could just do it part time to earn a little extra money. Whatever flies your plane. Me, personally, I can't work for anybody knowing the things that I know. Sign up for my blog and stay updated with what Dennis Knows.