What Newbies Need To Know When Wholesaling and Flipping Houses

• The playing field
  • Determine whether you are in a bust or lean period. Buying a house in the bust period when the prices are high is not a good move because this means you will be paying way too much for a house. On the other hand, buying in a lean period, though your financial status may also be lean, would equate to higher profits because houses at these times would be much cheaper. So be sensitive with how the real estate market is fairing and hit the right button at the right time.
  • Also, you should know how houses are priced in your area. Of course, your house does not have a replica somewhere being sold. However, looking for houses for sale that are similar with yours would give you a fair idea of how much your kind of houses are priced. This will also give you an idea about the competition, so you will be able to know how you are fairing with others, thus you will be able to adjust with what you are missing and exploit your advantages.
• What you need to spend on
  • You should be able to estimate all the money that you will spending – from taxes to secondary costs – monthly fees, repairs, notary, escrow fee, title insurance. Remember, in real estate the spending does not end after you bought the house. In fact, you are just getting started. So make sure that all the expenses that you will be having should be included in the plan. Failure to do so would most likely result to a losing deal.

• Know different types of mortgages
  • Knowing the different types of mortgages (which, by the way, could come in different forms and sizes) would help you determine how you are going to plan your flipping or wholesaling. Just make sure that with whatever mortgage you are having it will compliment the selling houses strategy you intent to use.
• House repairs
  • Houses that need more repairs would naturally cost lower. So, if you are willing to spend on repairs, then you buy a house that falls under this category. However, what you need to put into mind is that all you repair expenses should convert to profit. Meaning, whatever add-ons you include in the house or whatever fixing you do, it should add to the profit that you expect to get.
• Dealing directly
  • Especially if you already know what you are doing and you have marketing confidence, doing the deal yourself would save you from spending on commissions for people who did the deal for you. If you are still starting, you can ask a real estate agent to do the dealing for you. However, make sure that you learn how the agents does it so that in the future you can do the dealing yourself and not spend on front men anymore.
• Negotiate price
  • When you buy a house, do not hesitate to ask for discounts. Always start your offer at the lowest reasonable price that you could give. Do not make your offer to low because if will offend your seller nor too high because your deal will be a failure even before it started. Research, again, plays a big role in making an offer and closing a deal when buying houses. So make sure you do your homework before you start price dropping.

About the Author:

Terry Wygal also known as The Quick House Buyer, has been teaching real estate investors how to wholesale and flip houses for several years now. Terry also teaches real estate investors how put your website on the front page of google and crush your competition.