Three Ways You Can Flip Properties For Cash Profits

<h1>Three Ways You Can Flip Properties For Cash Profits</h1>Author: <a title="alexander siniavin" href="http://www.articlesbase.com/authors/alexander-siniavin/125028.htm">alexander siniavin</a> Investors who choose to flip <a href="http://www.mypocketdeals.com/referallanding.html">properties</a> buy real estate with intention to resell it for a profit. In many instances they sell them almost immediately. They act as both, principle and middleman, buying at one price and selling it at a higher price. The flipper does not need a license and benefits from low overhead and fewer work hours. Three types of flippers: <ol> </ol> <ul> <li>Birddogs - primarily function as information gathers. They find potential deals and sell the information to other investors. Fees for the information can vary depending on the price of the property and profit potential. In some cases it could be as low as $500 to $1000, in others a percentage of the profit for information that leads to a purchase of a property. </li> </ul> <ol> </ol> <ol> </ol> <ul> <li>Dealer or wholesaler - just like birddogs they locate properties for other investors. They find <a href="http://www.mypocketdeals.com/referallanding.html">bargain properties</a> and sign purchase agreement with the seller. Wholesalers provide much more that just information; they control the property with the purchase agreement/contract. Also wholesaler might assume a certain degree of risk by putting up earnest money to secure the deal. Exit strategies are: assignment of the agreement to another investor; or, if margin allows, closing on the property and selling it outright. A word of caution! Not all states permit assignment of contract by unlicensed individuals. It's highly advisable to do your own due diligence and check with your state's regulatory board to make sure you are not violating any local laws or regulations by doing an assignment of contract (don't always believe what you hear at you local REIA meetings, take an extra step to protect your business). </li> </ul> <ol> </ol> <ol> </ol> <ul> <li>Retailer or Rehabber - the goal is to fix up the property and sell it at a retail price to an owner-occupant or a land lord. Compared to the previous two types, the retailer puts up the most money (own cash or borrowed), assumes the most risk and anticipates to make the biggest profit on each deal. Although it's a lucrative venture, retailers are limited by financial resources and number of properties they can buy and rehab simultaneously. </li> </ul> <ol> </ol>About the Author: <a href="http://www.mypocketdeals.com/referallanding.html">mypocketDEALS.com</a> is a comprehensive information provider formed to bring together home buyers, real estate investors and real estate professionals with motivated sellers.
Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/real-estate-articles/three-ways-you-can-flip-properties-for-cash-profits-805082.html" title="Three Ways You Can Flip Properties For Cash Profits">Three Ways You Can Flip Properties For Cash Profits</a>

Investors who choose to flip properties buy real estate with intention to resell it for a profit. In many instances they sell them almost immediately. They act as both, principle and middleman, buying at one price and selling it at a higher price. The flipper does not need a license and benefits from low overhead and fewer work hours.

Three types of flippers:

Birddogs - primarily function as information gathers. They find potential deals and sell the information to other investors. Fees for the information can vary depending on the price of the property and profit potential. In some cases it could be as low as $500 to $1000, in others a percentage of the profit for information that leads to a purchase of a property.

Dealer or wholesaler - just like birddogs they locate properties for other investors. They find bargain properties and sign purchase agreement with the seller. Wholesalers provide much more that just information; they control the property with the purchase agreement/contract. Also wholesaler might assume a certain degree of risk by putting up earnest money to secure the deal. Exit strategies are: assignment of the agreement to another investor; or, if margin allows, closing on the property and selling it outright. A word of caution! Not all states permit assignment of contract by unlicensed individuals. It's highly advisable to do your own due diligence and check with your state's regulatory board to make sure you are not violating any local laws or regulations by doing an assignment of contract (don't always believe what you hear at you local REIA meetings, take an extra step to protect your business).

Retailer or Rehabber - the goal is to fix up the property and sell it at a retail price to an owner-occupant or a land lord. Compared to the previous two types, the retailer puts up the most money (own cash or borrowed), assumes the most risk and anticipates to make the biggest profit on each deal. Although it's a lucrative venture, retailers are limited by financial resources and number of properties they can buy and rehab simultaneously.

mypocketDEALS.com is a comprehensive information provider formed to bring together home buyers, real estate investors and real estate professionals with motivated sellers.

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/real-estate-articles/three-ways-you-can-flip-properties-for-cash-profits-805082.html

Article Tags: Real Estate Owned, Homes In Foreclosure, Short Sale Properties

Related Articles
Related Q&A

Latest Real Estate Articles
More from alexander siniavin

Homes in Brampton – A coveted possession

By: Robert Perks | 27/12/2009
To sum it up, Homes in Brampton can be easy for one to lay his/her hands on provided they get the expert advice and are proper guidance from well-trained and seasoned real estate agents. Owing a house isn’t a herculean task, thanks to the new breed of real estate agents in Brampton who know their field of work just too well.

Why Should You Buy Real Estate In Park City, Utah?

By: Hope Grabarnick | 27/12/2009
Why should you buy real estate in Part City, Utah? If you are harried of the hustle and bustle of stressful city life and don’t get to spend too much quality time with your friends and family, buying a property here is just what you need. Park City is a town in Summit county Utah.

Real Estate Park City Utah: Grab Your Dream Property At Incredible Prices

By: Hope Grabarnick | 27/12/2009
The life in Utah cannot be completed without the presence of Park City. This stunning city is surrounded by a splendid mountainous backdrop. Park City Utah is very graceful and a picturesque city. The place offers every luxury of a city life to the person who has come there as a tourist or with intention to settle down in this scenic place.

Real Estate & Home Loan Market Timeline of Important Events in Turkey

By: Caglar Kilinc | 27/12/2009
Home loan must have been the bread and butter of construction developers in Turkey. Individuals as well as banking and financial institutions saw progress in providing loan mortgages to both foreign and local investors.

Real Estate Opportunities In Park City

By: Hope Grabarnick | 27/12/2009
Park City is amongst the famous towns in Utah, 30 minutes from Salt Lake City. There are many people who wish to buy property in this area and are interested in spending the best times of their life in the Rocky Mountains. Park City real estate has attracted many people to settle down after retirement and live their lives in the peaceful atmosphere.

Largest Property Purchase Deals in Turkey

By: Caglar Kilinc | 27/12/2009
In your quest to find out if property investment in Turkey is feasible, you certainly want to know more facts about how the trade is going in the country. You will never know that unless you get an idea on some of the largest purchase deals in the area.

Top 10 Retirement Communities for Retiring to Turkey

By: Caglar Kilinc | 27/12/2009
Foreigners have always looked forward to living a blissful life in one of the favoured retirement communities in Turkey. You may be sailing the same boat by now. If you are looking for something to work with your dream lifestyle, retirement living is a good option in the country.

Learn Landlord Skills to Rent Houses Fast For More Money and Keep Rented Longer (7th in a Series)

By: George Beardsley | 27/12/2009
One of the most powerful techniques you can use to rent houses fast for more money is also a technique that will keep the house rented longer and preserve your sanity. Never Argue. And find out what the real issues are. That's It? How Ridiculous! If I don't argue they will take...

Most successful realtors and real estate investors use this free technique

By: alexander siniavin | 09/05/2009 | Networking
Most successful realtors and real estate investors use this free technique What is the quickest path to building a huge list of property buyers with zero cost and little effort? Whether you realize it or not, your network of contacts is full of connected people who are able and very willing to help you. However, many of us make one very costly mistake, we focus on our immediate contacts, people in our rolodex that we have direct interaction with. What if you had a way to go beyond your rolodex

The Art Of Real Estate Investing!

By: alexander siniavin | 06/03/2009 | Real Estate
Know your exits first. No investor should ever enter into a real estate transaction without havjng a clear exit strategy first.

Four Ways To Dump A Blood-Sucking Property

By: alexander siniavin | 06/03/2009 | Real Estate
How can you get rid of bad real estate investment in todays over sold market?

Home Buyers Will Find Phenomenal Deals In Today’S Real Estate Market.

By: alexander siniavin | 04/03/2009 | Real Estate
You can have a newly remodeled home, completely customized to your own for a total cost of 70 cents on dollar or less compared to the property values in your area.

How Can You Profit Rehabbing Real Estate?

By: alexander siniavin | 02/03/2009 | Real Estate
Fixer-upper properties that come under the foreclosure category can be a great way to make a profit. You can buy properties cheap and dramatically increase the value by completing some simple renovations.