easy way to generate cash

Flipping houses (also known as wholesaling houses) is the quickest business model to make profits in real estate investing. It is also the business model that needs little to no money capital.

You can cash out of the deal in just two to three weeks. Even though the profits are lower that other investing business models, you can make earn some good money flipping houses. You can easily generate $5000 to $10000 for each deal, with very little effort and work. It is typical to close 3 to 5 deals monthly on a part time basis.

In general, it is necessary to find houses below market value, the flip them to buyers with cash, most other real estate investors.

I never rehab my wholesale houses, I leave this to the wholesale buyer.

To be successful in this business, here are a few tips to follow.

1) Buy your houses at the right price

You can find most rehab deals in the medium price range. In my investing market, this is houses under $150,000. Some lender require you buy within a predefined price range. Going too low could mean buying in undesirable areas. Going too high can mean few potential buyers to sell to. Speed and high frequency are a must for successful wholesale real estate investing.

2) Avoid bad neighborhoods

Most real estate investors target nice fairly priced neighborhoods. Lower prices are always attractive, but ability to rent out the houses they buy is important to most investors. As such, it is mandatory to target good neighborhoods to be successful as a house flipper.

3) Estimate repairs accurately and quickly

Rehab cost estimate is a necessary part of wholesaling houses. Most require rehab, and you must consider this in the offer you make. I buy my houses for wholesale real estate below 65% of fair market value less repair costs. A lower offer leaves more money on the table when I flip to wholesale buyers.

4) Make good offers that leave a profit and that get accepted

Making an offer is a crucial part of real estate investing, probably the most important. When wholesaling houses, you must allow a profit for the wholesale real estate investor and for you.

Certainly, as long as you know the estimated renovation costs and the after repair value after it is renovated, you will be able to make an offer that both gets accepted and leaves enough cash on the table for both you and the wholesale real estate investor you flip the house to.

5) Identify people with cash looking for fixer uppers

Once you have a contract to buy, you must get a wholesale buyer with cash who will fix it and sell, or rent it out. It is necessary to verify the source of money before wholesaling your houses. A line of credit or cash in the bank is always preferable. This way, you flip your houses fast and avoid tight lending restrictions.

Most importantly, I must get a reasonable nonrefundable earnest money before I flip my houses.

6) Cash out quickly

With a ready source of cash, you can close your deals in 23 weeks including time for title work. Speed and volume will them be easy to accomplish, hence making more profits.

Simon Macharia invests in real estate in Dallas Fort Worth, flipping houses. As part of successful real estate investing, he runs his business from a real estate investment Web Site Article Source: http://EzineArticles.com/?expert=Simon_Macharia