Real Estate Flipping

What do you think of when you think of distressed property sales? Do you envision having to find, buy, fix up, and then sell properties at significant expense to you?

That can be true; most people think of property sales as a situation whereby you have to deal with actual foreclosures or other distressed properties in that you "flip" them for cash, but you don't necessarily have to do things this way. You can of course purchase distressed properties like those owned by the bank or those that have been foreclosed on, fix them up, and then resell them for profit. Traditional house flipping requires significant time, effort, and investment, though, and you can actually do what's called "wholesaling" distressed property with much less effort.

With these types of property sales, you don't need to worry about credit, and you'll need little to no money down.

What you do as an investor for these types of property sales is to buy properties, then sell them at slightly higher prices to those who are actually going to fix up the property. You, the seller, do not actually repair or renovate the property. You simply resell the property in "as is" condition.

Working in distressed property sales via notes

You can also be a real estate investor whereby you're either the property owner who offers the seller carry that financing, or where you purchase properties from the seller with real estate contracts. This often requires what's called "seller backed financing," where instead of taking cash in one lump sum for the sale, the seller accepts payments from the buyer over a set period of time. You can then turn around and buy or sell those installment payments for a lump sum payment. Alternatively, you can sell a portion of those installments for a lump sum payment.

Working as a broker for property sales by buying and selling real estate notes

One of the best ways to make money in property sales is as a broker. As a broker, you help arrange the buying and selling of real estate notes between buyers and sellers, and as a result, you get a finders fee once the note for the distressed property has been sold.

There are many ways to get involved in distressed property sales, and none of them have to involve putting significant time or effort in repairing and then "flipping" properties. Instead, getting involved in buying, selling, or brokering the buying and selling of distressed property real estate notes can be a great way to make a significant income, with much less hassle and trouble than traditional real estate "flipping" can give you.

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