Do you want to get into real estate investing but don’t want to manage a rehab to “fix and flip” a property? Are you stuck with sellers and lenders saying NO? You have to learn how to STRUCTURE your deals the right way so they say YES. Successful foreclosure investors just like you, from all across America, are landing deals every day!
Don’t let not having proof of funds or no contract assignment keep you from making money flipping foreclosures. Flipping deals to other investors is the BEST way to make profits in today’s market. Here are four ways to make fast profits by flipping your foreclosure deals.
Contract Assignments
This is the simplest way to flip a deal. You get a wholesale contract signed, and assign it to another investor who closes the deal. You negotiate a nice finder’s fee from your cash buyer. When your investor closes on the purchase, you get paid in escrow, at the same time the seller gets paid. Not all contracts are assignable. If the seller needs lender approval (as in short sales) the assignment clause will most likely be denied.
LLC Member Assignments
More complicated form of flipping. You create a new LLC to buy your wholesale property and then change members of the LLC to your cash investor to complete your flip. Your finder’s fee is paid outside of escrow, once you remove yourself from the LLC. Requires advanced planning with your LLC, which may create a problem with timing your close.
Double Escrow (Simultaneous Closing)
You setup two transactions – one for your wholesale purchase at a lower price and another one for your resale to your cash buyer at a higher price– and time them to close on the same day. You build in a nice profit for yourself, which your end buyer never sees. Requires you to have the funds to close on your purchase or use a Transactional Lender to fund it for you. Works great if no lender approval is needed. For those short sale lenders who include deed restrictions (no resale for 30 days) same day closings won’t work.
Extended Funding (Close up to 30 days apart)
This is the same as a Double Escrow (two transactions and a nice profit for you in between) – except your second closing to your cash buyer closes up to 30 days later. Requires you to have the funds to close on your purchase or use an Extended Transactional Lender to fund it for you (at a higher cost). Works great on short sale lender deed restrictions (30 days or less) but may require you to put down payment on the first transaction.
Which Flipping Strategy is Best?
Linking all four of these strategies will only work if you have the cash investors waiting for the deals. Knowing how to choose each strategy for each deal is something I will teach you.
You Can Do This!
Take a look at the last two Spotlight Series Blogs that I’ve shared. These are ordinary people like you or I, flipping houses and making profits. Please read Randy the Milkman and Dave the Unemployed Salesman’s stories about how they first got into real estate investing in the foreclosure market. These two have made it big and started exactly where you folks are starting right now.
Then join me for my Brand New, Live Strategy Session Webinar “New Proven Flip Strategies for Fast Paydays” on Tuesday, May 7, 2013 at 6:00pm Pacific and 9:00pm Eastern time to find out what you need to do to take the lead and get the deal…
Read more about Foreclosure Flips:
- Top 25 Markets for Foreclosure Flip Homes for Profit
- How to Flip a Foreclosure Home: Part 1 Contract Assignments
- How to Flip a Foreclosure Home: Part 2 Transactional Funding