Re: Flipping - Posted by Stacy (AZ)
Posted by Stacy (AZ) on October 28, 1998 at 10:45:30:
The idea of flipping wholesale to start investing in real estate is a good one. The concept is to cultivate a buyer’s list of investors you can flip properties to, before you ever place one under contract. If you have a list of several buyers and their needs, you can then go out and find the properties that fit those needs. Then, if you find one, you call your investors and ask if they’d be willing to purchase from you (without disclosing the address of the property). If it’s a go, place the property under contract and get your investor involved. Flip the contract to him and collect your assignment fee.
If you have a list of solid buyers, you will never have to lay out more than $100 earnest money. No need to owner finance or have large sums of cash.
However, if you don’t have confidence that you will be able to flip a particular property to an investor, you should not place the property under contract, unless you could close on it yourself. So you can see, the buyer’s list is the key.