House flipping provides quick cash profits with reduced risk.
Risk is reduced because you never take possession or own the property,
instead you control it. Control without ownership lets investors make money
selling properties they don't own.
It's a fast start for Beginners. And a quick solution for Intermediate, & Experienced investors needing cash flow now.
Quick cash (30 days)
NO funding and NO credit check
Just match up real estate buyers & sellers.
You don’t need to hire contractors or deal with picky buyers.
Your credit is irrelevant and you need no previous experience.
1 Find Your Buyer
Know exactly what your buyer wants by building and maintaining a cash buyers list and network. Refer all interested buyers to your website where they sign up and enter their buying criteria. When you have deals available they'll automatically be notified. Here's 12 more strategies for finding cash buyers.
2 Secure Your Deal
Negotiate and write the contract. See a sample sale and purchase contract.
Not commonly known, but all contracts to purchase real estate are assignable, unless specifically stated in the contract that it's not. In most cases, if you purchase real estate from a bank, mortgage company or a Realtor, the contract will contain a non assignability clause.
Click here to find out how to legally work around non assignable contracts.
Be sure your contract includes permission to show the property to prospective buyers. Then get out your trusty phone and make a video. Walk through the property inside and out, show the good and the bad- you want your cash buyers to have an immediate idea of the condition of the property. This is the video you'll send to your cash buyers list and post
to Youtube and Pinterest.
No inventory for house flipping? Do this.
1 Call every “we buy houses” bandit sign, Google and CL ad you can find. 2 Find out which properties they have under contract. Ask if they're open to doing a deal split if you bring the buyer. 3 Go find a cash buyer who can close quickly and match them up.
3 Assign Your Contract
The buyer pays you to sign over the
contract to them. Use an Assignment of Contract, here's a sample one.
Once this form is signed, the buyer simply steps into your shoes. All
the rights you negotiated in the original contract transfers to them.
Make sure your buyer is serious. Get a large deposit- $5,000-$10,000. This demonstrates a strong level of commitment from your buyer to get the deal closed.
Always make the escrow deposit non-refundable.
Also get a proof of funds (POF) letter or a statement from their bank that proves where the money is coming from for closing.
If you have collected your fee at the time you sold the contract to your buyer then, you're basically done with the transaction. However, most times you won't get paid til closing.
assigning a contract your profit is disclosed to both the buyer and
the seller this is not always a good thing, especially if the fee you're about to receive exceeds $7,000. A simultaneous or
double closing is a better choice because it'll keep
your fee private.
The simultaneous closing is highly effective when a Land Trust or LLC is the buyer on the contract. You just assign your beneficial interest of the trust over to whoever you're flipping the property to. Plus all seasoning issues are resolved since there is never a break in the chain of title. Also fees will be lower because its seen as a transfer not a sale. And You as an investor, are limiting your personal liability.
That's why we suggest that you use a team of skilled professionals, automated systems and software like we use. Try Freedomsoft Free for 30 days and get your house flipping business automated overnight.
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