Money Flipping Real Estate Contracts: How to Make $5000-$15000 Easily

How to make $5000 – $15000 money flipping real estate contracts? This posts provides you with great tips.

If you’re looking to make extra money and want to try something interesting and new, you might want to consider real estate contract flipping.

Though it might sound intimidating, it’s actually pretty easy once you understand how it works!

In this guide, we explain the basics of real estate contract flipping, and show you how to make $5000 – $15000 money flipping real estate contracts.

Before you continue, check out;

If you want to make money flipping real estate contracts, it’s important to follow these 14 tips first to make sure you have the best chance of success and that your earnings are long-lasting instead of fickle and temporary.

What is Real Estate Contracts Flipping?

Real Estate Contracts Flipping is the process of finding a property under contract and then selling that contract to another party before closing.

This can be a great way to make money in real estate, but it does require some knowledge and understanding of the process.

Why is it time to start real estate flipping business?

  1. It’s a great time to get into the real estate market.
  2. Property values are rising, so you can make a good profit on your investment.
  3. You can find properties that need work and fix them up to sell for a higher price.
  4. Flipping contracts is a relatively low-risk way to make money in real estate.
  5. You can learn how to do it with some research and practice.
  6. It’s a flexible way to make money, so you can do it part-time or full-time.
  7. Start now and you could be making $5000-$15000 in no time!

How to Make $5000 – $15000 Money Flipping Real Estate Contracts

  1. Look for properties that are being sold below market value.
  2. Research the properties to make sure they have potential.
  3. Find a buyer who is willing to pay more than you are paying for the property.
  4. Make an offer on the property, contingent upon finding a buyer.
  5. Once you have a buyer lined up, close on the property and have the deed transferred to the new owner.
  6. Collect your profit from the sale, which will be the difference between what you paid for the property and what the new owner paid you.
  7. Repeat steps 1-6 as often as possible to make as much money as possible flipping real estate contracts!
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Let better explain each point below;

1) Find a good deal

In order to make money flipping real estate contracts, you need to find a good deal. Look for properties that are undervalued, in need of repairs, or both. You can find these deals by looking online, contacting a real estate agent, or going to foreclosure auctions.

Get the money you need (three sentences): Once you’ve found a good deal, you need to get the money you need to finance it. You can do this by borrowing from friends or family, getting a loan from a bank, or using your own savings.

2) Avoid real estate agents

You can avoid real estate agent fees by finding properties that are For Sale By Owner (FSBO). You can also find properties that are in pre-foreclosure or have been foreclosed on.

These are sometimes called distressed properties. Look for motivated sellers who are willing to negotiate a lower price. Be careful of scams! Be wary of owners who refuse to show you the property, as this could be a sign they want to take advantage of you.

Make sure your financing is lined up before making an offer. Take photos and videos when you see the property so you’ll remember any details you may need later when discussing it with the seller.

3) Know the type of deals

There are a few different types of deals you can do when flipping real estate contracts. The first is called an assignment. This is where you find a property under contract and then sell the contract to another buyer.

The second type of deal is called a double close. This is where you find a property, get it under contract, and then find a buyer for the property and close on the sale all in one day. The third type of deal is called a subject-to.

This is where you take over the payments on a property and then sell it for more than you are paying. And finally, the fourth type of deal is called a lease option. This is where you lease a property with the option to buy it at a later date.

4) Act quickly

  1. Find a motivated seller. This is usually the hardest part. You can look for For Sale By Owner (FSBO) signs, go through expired listings, or contact a real estate agent who specializes in short sales.
  2. Get the property under contract. Once you find a motivated seller, make an offer on the property. If your offer is accepted, you will have a contract to purchase the property.
  3. Line up your financing. You will need to have cash or access to capital in order to purchase the property. You can use your own cash, get a hard money loan, or use private money from investors.
  4. Close on the property. This is when you will actually purchase the property and take ownership of it.

5) Keep enough capital

You’ll need at least a few thousand dollars to get started flipping real estate contracts, but the more money you have, the easier it will be to find properties and make a profit.

With a budget of $5,000, you can expect to make around $15,000 flipping real estate contracts.

Here’s how to get started:

  1. Look for motivated sellers who are willing to take a lower price for their property in order to sell it quickly.
  2. Research the market value of similar properties in the area to make sure you’re not overpaying.
  3. Have a qualified home inspector go through the property with you so you’re aware of any necessary repairs that will need to be made.
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6) Get creative when financing

You’ll need to get creative when financing your flips. You can’t always rely on traditional methods like getting a loan from the bank.

Instead, try using private money lenders or even hard money loans. You can also look into using credit cards or lines of credit.

Just be sure that you have a solid plan in place to repay the money you borrow. Otherwise, you could end up taking on debt that’s more than what your property is worth and lose everything.

7) Get a business plan

A business plan is a document that formalizes your business idea and can streamline the process of starting a business by getting you to sit down and think things through.

Plus, having a plan will help you feel prepared when the unexpected happens.

To make money flipping real estate contracts, you’ll need to find properties that are below market value and in need of repair.

You’ll then need to negotiate a contract with the owner to purchase the property at a low price.
Once you have the property under contract, you’ll need to find an investor who is willing to provide the capital for the repairs.

8) Inspect properties thoroughly

It’s important to know what you’re getting into before you make an offer on a property. You’ll need to inspect the property thoroughly, paying attention to any necessary repairs that will need to be made.

It’s also important to research the neighborhood the property is located in. You don’t want to overpay for a fixer-upper in a neighborhood that’s on the decline.

If the exterior of the home needs work, it’s usually not a good idea to make an offer.

Similarly, if there are safety issues with anything from faulty wiring to cracked foundation walls or leaky plumbing (especially when it comes to mold), then you should consider walking away from the deal and looking elsewhere.

Remember: if your investment has major problems and won’t cost just a few thousand dollars in repairs, then chances are it isn’t worth purchasing at all.

9) Know what kind of properties to buy

  1. Look for properties that are in pre-foreclosure. These are homes that are about to be foreclosed on by the bank.
  2. Find out why the owner is selling. Is it because they’re behind on payments and need to sell fast, or because they’re moving and need to sell quickly?
  3. Research the property and find out how much it’s worth. Get a real estate agent or appraiser to help you with this step.
  4. Make an offer on the property that is below the market value, but still above what you think you can get it for once it’s fixed up.

10) Know your competitors

You will likely have competition when flipping real estate contracts. There are a few ways to make sure you come out on top.

First, get to know your competition. What are their strengths and weaknesses? How do they operate?

Second, find your niche. What can you offer that others cannot?

Third, create a marketing plan that will make people want to work with you. Fourth, develop a good reputation.

Fifth, stay organized and efficient. Sixth, charge fair prices. Finally, always be learning and improving.

11) Show them you mean business

  1. Get a good lawyer. You need someone who knows the ins and outs of real estate law to protect you and help you make money.
  2. Find a motivated seller. This is the key to making money in real estate flipping— finding a seller who is motivated to sell quickly, and for less than the property is worth.
  3. Get a realistic appraisal. An appraiser will give you an unbiased opinion of what a property is worth, which will help you know how much to offer the seller.
  4. Make an offer the seller can’t refuse. This may mean offering more than the appraised value, but if it means you’ll make a profit on the flip, it’s worth it.
  5. Negotiate the contract terms. The terms of your purchase contract should include: how much you are buying the property for, when you are allowed to take possession of the property, how many months before your first payment is due (called a due-on-sale clause), when your payments are due each month (to avoid interest charges), what happens if you default on payments or miss deadlines in the contract.
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12) Negotiate profit sharing with the seller

If you’re looking to make some quick cash by flipping real estate contracts, one of the best ways to do it is by negotiating a profit sharing agreement with the seller.

This way, you can split the profits from the sale 50/50, or even 60/40 in your favor.

Here’s how to do it

  1. Ask the seller how much he wants for his property and how much he needs for his down payment.
  2. Estimate what percentage he’ll have left over after paying for his down payment and closing costs (he’ll need this money to buy another house). Let’s say that amount is $5000.
  3. Calculate what percentage of the total cost of the home (including closing costs) he will be getting back at closing time (it should be 50% if you negotiated a 50/50 split on profit). Let’s say it will be $10,000 if he sold for $100,000 and had no other costs besides his down payment and fees.

13) Use your assets wisely (including time and connections).

If you’re thinking about flipping real estate contracts for profit, there are a few things you should know.

For starters, you’ll need to use your assets wisely. This includes your time and connections. You’ll also need to have a firm understanding of the market and the properties you’re interested in flipping.

It’s also important to have a solid plan in place before you start flipping contracts. Once you have all of that in place, it’s time to start looking for properties that fit your criteria.

Once you find a property, it’s time to negotiate the contract and then close the deal.

14) Be honest with yourself about the risks.

There’s no denying that flipping real estate contracts can be a great way to make money. But it’s not without its risks. Before you get started, it’s important to be honest with yourself about what you’re getting into. Here are some things to keep in mind:

  1. Flipping real estate contracts is not a get-rich-quick scheme. It takes time, effort, and knowledge to succeed.
  2. You need to have enough capital to cover the costs of the property, as well as any unexpected repairs or unforeseen expenses that may come up.
  3. You need to be able to find properties that are undervalued and have the potential to be flipped for a profit.

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