How to Flip Houses Using Other People’s Money – 2021 | Flip Houses For Beginners | Flip Real Estate With No Money
How to Flip Houses Using Other People’s Money
In this article you will learn how to flip houses using other people’s money, so no money is coming out of your pocket into the deal. This is achieved through a process called wholesaling. This basically means you flip the contract, not the house to someone else. In the process you get an assignment fee which could be any amount you and the assignee agree to i.e. $5,000 or ever over $50,000 depending on the deal. For more detailed information on this see this article that explains the wholesaling process.
Flip Real Estate With No Money
Wholesaling has always been a little or no cost process in real estate investment. As a new wholesaler, you can generate massive profit with a more negligible initial cash outlay than the investor who has to purchase the property and possibly rehab it.
In contrast to the fixing and flipping approach, which requires funding and revocation costs, getting started with wholesaling requires low-to-no-cost. So, it is a viable option to invest in real estate for beginners without money. Since wholesalers don’t usually close on the contract – instead, they flip the contract – you don’t have to either borrow or put your cash into a deal.
Still, although this process doesn’t require much money, it needs your time and effort. To achieve success, you must take time to understand your market and find reliable lead sources. Follow up on these leads and execute sales agreements and purchases with sellers and assignment agreements with the end-buyer.
Is Wholesaling a Legal Venture?
Although some controversies are surrounding the assignment aspect of wholesaling, it is not illegal. People with insufficient information about this space believe it is unlawful because they likened it to brokering real estate without a license. However, this venture doesn’t involve brokering but contract assignment.
How To Start Flipping Houses For Beginners
When you start looking for that first deal will come to find that it is no easy task. The seasoned and successful real estate investors have an established network to help them find deal and in many cases send off market leads to them.
This makes starting up even tougher since you are at a disadvantage by experience, knowledge, and network. Therefore, it would be wise to start working on all three areas sooner rather than later.
Use Multiple Listing Service (MLS) to find properties and practice running comps. It’s quite difficult to find good deals in good areas through MLS, but you could get lucky or be in a low competition market.
The best deals are usually off-market deals. Previously, wholesalers primarily used old-school approaches such as bandit signs to get motivated seller leads or anyone that is ready to sell before a real estate agent get’s involved.
However, today wholesalers can find a myriad of properties without leaving the house. There’s software you can leverage to make your life much easier when it comes to hunting for deals. One of the best if not the best is PropStream. With its database-rich insights you can dramatically increase your deal flow and find off-market opportunities. Anyone can play the real estate game today, and more and more wholesalers and investors are staying afloat in the ever-competitive market with tech and data-driven approaches.
To learn more about how to flip real estate with no money i.e., wholesaling and how lucrative it can be, watch this webinar.
How To Flip Houses Using Other People’s Money
Wholesaling real estate online
Since you can now use technology and online data to locate off-market properties and motivated sellers, you might as well use it for the entire process.
1. Use software to locate and market to off-market property leads
2. Engage with hundreds of prospective motivated owner/sellers with ease by automating lead generating campaigns via email, voicemail, postcards, and more.
A quick guide to wholesaling property out of state
You may also want to propel your online wholesaling endeavors to a whole new level and consider remote real estate wholesaling instead of just your local market.
1. Leverage the options available online to locate and connect with off-market property leads
2. Interact with them using Skip Tracing feature to assess the property owner contact details such as email, phone number, and address.
3. Execute sales agreement and the entire sales procedure digitally using DocuSign.
4. Locate end buyers anywhere nationwide. Of course you need to develop your buyers list for this. I would suggest joining a local real estate club to start with. You will meet many in the market for good deals.
The average income of real estate wholesalers
Ultimately, this depends on the property, motivated seller, and the wholesaler. Luckily, the processes involved in closing a deal remain constant regardless of the relevant parties. Understanding these steps will help you close more and more deals repeatedly for massive income. Now, the question is, how much does a wholesaler make? A wholesaler might make about $7,500 per deal, but could make upwards of $75,000+ on a single deal! Note that this value may vary depending on several factors like the market, deal quality, property, etc. What significantly influences your wholesaling salary is the number of deals you can close and their qualities.
Tools required for success as a wholesaler
Connecting with other parties and collecting wholesale profit isn’t as challenging as it used to be. See this article that discusses the best software, prices, and competing products on the market.
These software products allow wholesalers to access a vast network of motivated sellers with its powerful and targeted marketing features. Besides, you also get to access customizable marketing tools to find your following clients, even before they are in the market. This gives you unrestricted access to motivated sellers present in any market.
Once you understand what makes up a quality deal and how to talk with seller, you’re on the path to success as a wholesaler and investor. You can always rinse and repeat the highlighted steps for significant returns.
Happy house hunting!
For more information on the how to flip houses for beginners, obtaining motivated seller leads and building your wealth with real estate, keep up to date with the realestatewaypro.com newsletter.
