"Flipping Properties" - Posted by J Chandler

Posted by Lesley C. in stl on August 03, 2000 at 24:54:04:

What do you do if you don’t a penny of earnest money? Is this possible? Thanks!

“Flipping Properties” - Posted by J Chandler

Posted by J Chandler on June 26, 2000 at 08:30:35:

I am new to real estate investing. I have come across a bargain property that I am about to put under contract. I am interested in “flipping” this property to another investor and making a small profit on the deal. After I have the property under an Offer to Purchase contract, how do I go about assigning the contract to someone else and still get my cut out of the deal? I have found Assignment of Contract for Real Estate Purchase Forms on the internet; however, I do not see how I make my money off the deal. It looks like I just transfer the contract to the assignee. How do I get my money out of the transaction? (For example, I find a house for $10,000 and I want to “flip” it for $20,000. I have the property under contract for $10,000. How do I make the trasaction work and end up with my profit?)

Re: “Flipping Properties” - Posted by Sean

Posted by Sean on June 26, 2000 at 12:14:34:

Once you have an agreement to purchase with a Seller you sell the agreement.

For example if you find a house and agree to buy it for $80,000 and you put down $1,000 in earnest money then you find someone else who is willing to pay $90,000 you sell them the contract for $11,000. That’s $90,000 minus the $80,000 ($10,000) plus the $1,000 in earnest money you put towards the property.