First off, I should tell you that flipping homes is NOT illegal. And for that matter, it never has been. Flipping houses to legitimate dealmakers simply involves finding houses for well under market value then passing the deal off to someone else. In most cases, you'll pass a deal off to another real estate investor that wants to hang on to the property as a rental or maybe they will lease option the house to a homeowner.
These deals can be performed with little to no money invested, just your time.
You're goal flipping houses is to be able to create large paydays from your flips so that you have enough funds to first quit the J-O-B, then so you can begin investing some of your cash into longer term deals such as apartments or businesses.
The benefit of this method is two fold.
First, this allows you to do deals without risk, while you learn the market. This way you learn your market and make money at the same time without getting in over your head with vacancies, tenants, and property management.
Next, and more importantly this allows you to build cash reserves for your business. In the early years of my career, I made the mistake of attempting to build wealth before I had cash on hand.
If you try entering the world of investing by holding properties before you have the necessary cash reserves to handle the vacancies, tenants, the repairs, then you're asking for trouble.
So now, lets talk about how much money you can expect from flipping houses. Personally, I've made anywhere from $500 to $10,000 per deal. It will depend on each deal scenario, however if you structure the deals the right way in the first place, then you can complete deals with no money, no credit check, and no loan from any bank.
Imagine, leaving the closing with a huge check without the burden of fixing up the house or cleaning up or anything, getting paid for putting the deal together.
Imagine, not having a dime into a deal, only spending time with a distressed seller, then in two to four weeks picking up a check at closing for $5000 and never having to repair one stickin' toilet or anything else for that matter.
You made the deal and that's all you did. Well, there's nothing magical at all to this scenario. Some believe that conducting a deal like this only happens once, or in movies or in dream. I'm here to tell you that's a bunch of bull. See, anyone can make it happen, once they know the rules to the game. And in reality, the rules are pretty simple. With a little creativity and by marketing to motivated sellers, you can pull of deals just like I described.
About The Author:
Derek Pierce is a full time real estate investor and business owner. He got his start investing in real estate when he bought his first property in September of 2000. After this first deal, Derek literally became obsessed with Real Estate Investing. After being faced with being downsized in 2001, he quit his job to be full time in the business and hasn't looked back since. Now, he reveals the real estate investing secrets he swears by in his Free Real Estate Investing "E Coaching Program." To sign up for the Free E-coaching program, go to http://www.thereisecrets.com
