Flipping Contracts

Posted on November 27, 2008
Filed Under free foreclosure listings |

How can you flip a contract, instead of a property?

You have seen the Carlton Sheets or Ron Le Grand advertising about making a fortune in the real estate business. And you still wonder if it is true or false.

Well, stop right here, save your money and read this ‘No risk, No money, No nothing’ way to make money with no money down STEP BY STEP and FOR FREE!!!.

Let’s say you find a property for sale, maybe a ‘for sale by owner’ or anything else. Do your homework and know how much that property worth. Let assume the property worths $100,000 market value today and the owner wants to sell due to divorce, foreclosure or whatever the reason. The transaction will be easier if the owner is motivated to sell.

He is asking $95,000 for quick sale. Make sure this property can sell for around $100,000 easily.

Now do this step by step:

- Get an offer as low as possible. (Let’s say you got it for $86,000)
- On the contract, buyer is ‘Your name AND/OR ASSIGNS’
- Closing date in 60 days (more is even better). It gives you 60 days to try to sell it before to go to closing
- Inspection within 60 days (more is better)
- And you buy the property ‘AS IS’ with right to inspect.
- Disclose the facts that you do this as an investor, meaning you do that to make money.

The next day you advertise that property in the newspaper for $98,000, or $2,000 less than market value. Of course, the highest, the best. But by selling below market value, you will definitely get lots of attention from rehab people and other investor or even buyers. Now or you sell the home for $98,000 and you make an addendum to the contract saying this: -Contract assignment to ‘Mr. New Buyer’ for a value of $12,000 to be paid at closing.

This addendum needs to be signed by first seller, by first buyer(you) and by second buyer. At closing, you name does not appear on the deed, the deed will go from first seller to second buyer. You just get your $12,000 check.

Or you did not sell within 60 days. So day 50 or 55, you do an inspection and because you bought it ‘AS IS’ with your right to inspect, you will not buy the property because you will not be happy with the inspection for whatever reason. Lost of inspection fee ($150-$300)

Comments

3 Responses to “Flipping Contracts”

  1. seeking on November 27th, 2008 10:39 pm

    Does anyone knows about FLIPPING REAL ESTATE CONTRACTS?
    Is it legal to flip real estate contracts in New York?

  2. engineer50 on November 28th, 2008 3:41 am

    Define your term.
    References :

  3. Tracy C on November 28th, 2008 3:43 am

    Oh Absolutely!1 in fact, it is legal to flip contracts in all 5 states!! I have been flipping contracts since 1999 and it is my primary income. Although i am also involved in other forms of real estate such as Buying Houses Subject To, Lease Options, and Owner Financing, flipping contracts is definitely the most fun, the easiest and the quickest way to make a big check in the real estate business.

    My husband is from New York (we live in Flordida right now), and he knows some of his friends who flip contracts there and do quite well. When we visit his family, there are plenty of WE BUY HOUSES signs, which is a true indicator of investors that flip contracts.

    It might be helpful for you to join a Real Estate Invesotr's Association in your area. You can find a list of them here. http://www.creonline.com/real-estate-clubs/ny.html

    Good Luck!!

    Tracy C.
    The Tattooed Guru
    References :

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