Real Estate Flipping - Is Flipping Real Estate the Smartest Solution to Get Started in Real Estate?

Real Estate Flipping - Is Flipping Real Estate the smartest solution to get started in real estate investing?

"Flip This House", "Flip That House", "Property Ladder",... and on and on...

In the last couple years you and I have been hammered on TV with real estate flipping implies that depict these folks making outrageous profits flipping homes and rendering it look easier than heck.

So, is this flipping stuff real? Well... it sure is. There are countless people out there making a darn good living flipping homes. But... the tv shows on flipping are darn deceiving in terms of the "reality" of real estate flipping.

Is flipping real estate the best way to get starting in property investing? I'll enable you to choose for yourself. However, for me, for most people, especially in the current down markets (not absolutely all markets are down... there are some doing really well), property flipping is not the simplest way to get started in real estate investing.

Here's why:

First, let's clarify two kinds of flipping.

The Fix and Flip - Where you buy real estate, rehab it, and sell it to a retail buyer. The kind that is on it shows.
The Wholesale Flip - Where you get real estate (or get it under contract), find a wholesale buyer, and flip the contract. The kind that's less glorious... but includes a ton of profit it... with a heck of much less risk.

If you ask me, the Fix and Flip method isn't for most newbie's... despite the fact that that is the kind of real estate investing you see on TV constantly.

Why?

You need a good understanding of rehab costs
You must have good funding... either from a private lender or perhaps a bank (private lender is preferable)
You need to be able to float the carrying costs if you can't sell the property quickly
If you don't calculate your costs just right... there will not be a lot of room for error... and room for error means greater risk on you!
The market is in a downturn... so there are less retail buyers on the market for middle income houses... that is what most people begin flipping

There are many people out there creating a very good living flipping... but many of them started several years ago... and have many flips under their belts.

They curently have systems down, have marketing channels so you can get buyers, have solid lending sources, etc. Not to say that new property investors cannot do all of the above... YOU CAN!

But, you can find better methods for getting started in real estate investing that enable you to get in with little or no risk or money, and will allow you to learn the Fix and Flip business before you ever have a huge money commitment to take action.

What's the single best way (for me) to get started in real estate flipping to minimize your risk and shorten your learning curve... even while making nice profit the process? Well... obviously option #2 from above: The Wholesale Flip - or in other words... wholesaling property, flipping houses for quick cash, flipping contracts, etc.

When  san diego realtor  do everything a flipper would normally do... except actually repair the property and sell it to a retail buyer. But, you don't have the chance or time commitment a fix and flipper has.

Basically, you as a wholesale real estate flipper (or wholesaler for short), find properties that need work that one could purchase at a large discount and flip them for a fee to a rehabber who'll do the work.

San Diego homes for sale  would be to find the properties, analyze the numbers to look for the repairs needed, create an offer that allows both you and the rehabber that you'll sell to to produce a profit, and sell the contract to a rehabber who'll make the repairs.

Often times real estate investors will make between $2,000 and $20,000 on a wholesale deal. So, for a low to no risk way to get started in property... there are huge profits to be had.

Another reason for getting started doing wholesale real estate deals is that you learn the ropes of what it takes to become a rehabber. After analyzing several deals and speaking with rehabbers to determine what they look for... you will have a good grasp on which a good deal is, how exactly to accurately estimate repair costs, who the rehabbers use as contractors, etc.

So, you actually earn money while you are obtaining a practical education on property flipping and rehabbing.

Anyhow, I didn't begin to write this article to scare you from the fix and flip mindset. There's good profit it...

My motivation to write this article is to help guide new real estate investors away from the glorified version of rehabbing that's plastered around TV... and point you toward what I believe to be the best way to get started in real estate investing.

I have something to confess...I may be a tiny hypocrite... but I didn't focus on wholesaling. I actually started with buying income properties. But, with today's markets... wholesaling property is the way to go to really get your feet wet and make some serious profit the process.

There is much more to real estate flipping and wholesaling property than the TV "reality shows" show. One of the better ways to learn the ropes is to learn from somebody who does it everyday and makes a solid living doing it.

Go to your local REI club and attach having an experienced mentor
Go out by yourself and make an effort to hack it yourself with no instruction (not advised)
Invest in a quality, step-by-step multimedia course that walks you through A - Z on the precise blueprint that successful wholesalers and property flippers use.