How to Make Money Flipping Real Estate Contracts

Learning the process of flipping real estate contracts is a great way to get started in the industry, especially for new entrepreneurs. 

There are several reasons why flipping contracts provide the most desirable and relatively easy path to execute.

Benefits of Flipping Real Estate Contracts as a New Entrepreneur: 

Nonetheless, there is still an evident margin of error one must consider before partaking in the strategy of real estate investing. 

As a result, people need to understand the entire process before jumping in. 

Getting the proper education will enable you to thrive and secure the success that will take your business to the next level. 

UNDERSTANDING THE CONCEPT OF FLIPPING REAL ESTATE CONTRACTS

Most people have heard about fixing and flipping houses, but flipping contracts is a different subject altogether. 

What does it mean to flip real estate contracts?

Wholesaling real estate and assigning contracts are interchangeable terms for contract flipping. 

The concept allows investors to operate as a middleman or wholesalers between sellers and buyers. 

Investors initiate this process by entering a legal agreement with the property owner, which gives them the authority to buy the property later.

As a wholesaler, you sign an agreement that ultimately gives you the entitlement to purchase the property in return for equitable interest. 

There are multiple steps involved in this process, and therefore getting the proper education from www.HomeFlippingWorkshop.com will help you achieve added success. 

SIX STEPS TO FLIPPING CONTRACTS

Wholesaling houses has become one of the most lucrative and straightforward strategies in the housing industry nationwide.

It’s important to note that flipping contracts comes with intrinsic risks. 

To lessen the degree of risk and loss, www.HomeFlippingWorkshop.com has outlined a proven strategy that includes the following six steps:

Investing in Real Estate Flipping & Wholesaling

1. Finding the Right Property

Knowing the secret to securing the right property is crucial when flipping real estate. 

In addition to finding the right home, investors must know how to work alongside sellers during the contract process. 

Homeowners are motivated for various reasons; some sellers are facing foreclosures, while others have an urgent need to relocate such as a death in the family, a divorce, placing a parent into a healthcare facility, or even a job relocation. 

When sellers are motivated by personal or professional reasons, it represents a more significant opportunity for the investor.  

Motivated sellers are more serious.

As a result, when investors find homes, it is best to place your priority on owners in need of selling their homes, as opposed to focusing on individuals entering contracts out of sheer convenience. 

Identifying where there is a need to sell a home is one of the easiest ways to secure a real estate contract agreement.

Consider candidates on local courthouse listings. Distressed homeowners are identified quickly on default filings – these lists are accessible for purchase online at your local county courthouse.

Also, delinquent mortgages are public knowledge and viewable by anyone who knows how to find them. 

Home Flipping Workshop teaches students success strategies and how to exercise due diligence.

Afterward, as a new real estate investor with limited funding, compiling a list of nearby homes with motivated sellers will accelerate your success.

2. Determine the Property Value

The master key to flipping real estate contracts is securing off market homes and under market value. 

You must evaluate the comparable homes in the neighborhood because the most attractive aspect of any property is the sales price. 

Determine the market value before proceeding any further. An analysis of a property is the completion of the following steps: 

Evaluate homes with similar square footage

Examine the size and number of bedrooms and bathrooms

Consider the amenities on the property

Calculate the comparable value of nearby homes 

These characteristics will enable you to determine the property’s overall worth as an investment. 

House flippers will need to know the financial details before initiating the process. Otherwise, you will not maximize your profits.

To effectively get started doing your research, contact local real estate agents, conduct online research, and carefully consider the value of your potential investment.

VestroPro offers expert training that equips entrepreneurs with the necessary tools to succeed in this lucrative industry. 

3. Write The Contract

After you’ve completed your research and the property characteristics deem a substantial investment, it’s time to negotiate contract terms with the property owner. 

Consider hiring a real estate attorney to ensure the contract states your exact intentions as the investor.

There is no standard contract that works for every property. 

As the investor, it is your responsibility to tailor the contract to meet the needs and intentions of all parties involved. 

Attorneys are essential as the verbiage is critical with the interpretation of the law and can present ambiguities. 

What seems clear is not always clear in a court of law. Therefore, real estate contracts must be deliberate.

Protect your investment by ensuring that your contract is thorough in the event challenges occur. 

4. Secure Signatures of Approval

The contract must receive signed approval from both parties. 

As a result, be sure that the contract also appeases the seller. When developing the agreement, keep step one in mind; the seller must remain motivated. 

Make the contract attractive to the seller while simultaneously ensuring the deal is beneficial to yourself as the investor. 

After both parties agree on the terms of the deal, the contract is signed. 

According to the doctrine of equitable conversion, once a real estate purchase agreement is signed by all parties and becomes effective.

The signature makes the buyer the equitable owner, and the seller retains bare legal title to the property under the previously agreed-upon terms.

5. Search For a Buyer

Start with the end in mind. Aim to have buyers lined up for every property before signing the contract – this is called a buyers list. 

Always keep potential buyers in mind. By doing so, you’ll already know important expectations as the forthcoming deal unfolds. 

6. Close the Deal

When the buyer is secured, prepare to close the deal. 

Connect the buyer with the title company once the title search is complete, which protects buyers from potential disputes and tax liens. 

Afterward, within 5-7 business days, you will have details concerning a final closing date.

The title company will draft the final contract between the buyer and the official seller, marking the conclusion of your wholesaler transaction.

Your contracted payment amount will be wire transferred, or an optional paper check can be made available during the closing. 

BENEFITS AND DISADVANTAGES OF REAL ESTATE CONTRACT FLIPPING

Real estate contract flipping is an attractive investment strategy loaded with benefits. 

Get the appropriate training to create the proper systems and dive into the business with longevity. The benefits come with limited risk.

What Are the Benefits of Flipping Contracts?

Not much money is required to get started.

Limited risk of financial loss.

Make money fast.

What Are the Drawbacks to Flipping Contracts?

Increased revenue will require a more significant effort to flip more properties.

Industry growth will demand more of your time. 

Developing an efficient system must be your priority.

Sifting through details to find the right property. 

How much money will I make flipping real estate contracts? That’s a loaded question because the answer depends on you. 

Your profits are determined based on how well you negotiate contracts.

What determines each deal is the difference between the contract costs to buy the house and how much you can sell the property for at closing. 

The amount of each deal changes with every contract.

If you are following the Home Flipping Workshop strategy, you should expect each real estate contract to generate thousands in profit. 

Wholesalers are invaluable, but it’s essential to learn the right strategies to capitalize on the most earnings possible.

GET READY TO LAUNCH YOUR ENTREPRENEURIAL EXPERIENCE IN REAL ESTATE INVESTING

Perhaps you are new to all things involving real estate or have never closed a deal; www.HomefFippingWorkshop.com will help you through the entire process. 

Join countless everyday people making $40-100K per deal flipping houses and contracts – and you can use other people’s money to do it.

Act now to get on the fast track to financial freedom. 

If 2020 taught us one thing, it’s that it’s never been more critical to make sure you and your family are financially stable than right now.

Do not procrastinate any longer. You must take the next step to get started by educating yourself on how to invest in today’s real estate market by signing up now for our next 3-day Home Flipping Workshop event.

If you are looking to learn at your own pace or want to deep dive this subject then we have a recommendation for you. Get a step by step training on wholesaling real estate deals in our No Flip Flipping E-Course.

No matter what you do we encourage you to take action and invest in your education.

 

 

– Glenn & Amber Schworm