When you think of flipping a house, what’s the first thing you think of? The check you make on the deal, right? That’s why we flip houses! But the real question is how did you get paid on the deal, and I don’t mean whether you got a handwritten check or a bank transfer from the settlement company! What I mean is, what exit strategy did you use to flip your house?
That’s right—there’s more than one! First, let’s define flipping: the ability to find, fix, and flip a house to a new buyer in as short a time as possible for the biggest payday possible. The goal is to buy low, rehab strategically so you don’t over “fix,” and then flip the house to a new buyer at a price point that makes it a good deal for them but a great deal for you.
You can find, structure, and fund the entire deal from start to finish as we do. That’s the obvious way to get paid, and possibly yields the biggest paycheck also. But did you know that there are four additional ways that you can get involved in flipping a house and earn a paycheck without doing everything from start to finish?
Let’s break down the different ways:
Driving for dollars
You can get paid for driving around neighborhoods, tracking down the sellers of dilapidated houses, and passing the information on to an active real estate investor. This is the easiest way to jump into real estate investing
Wholesaling the deal
This is where you find a house, track down the seller, get it under contract or under option, and then you sell that contract or the option to another real estate investor who wants to rehab it, rent it, or flip it. Depending on the value of the house and how good of a deal it is, you can earn anywhere from a couple of thousand dollars on a wholesale deal to ten thousand or more.
Financing the deal
Under this option, someone else (your business partner) puts in all the sweat equity. You bring the money to the table, either your own or a third party’s.
Putting in the sweat equity
You find the deal, work with the contractors, and make the magic happen, while your partner is the one who funds the deal (a reverse of the option above).
Taking care of everything
As mentioned above, you can do the entire flip yourself from start to finish, including finding the financing.
Who knew learning how to flip houses could be so much fun!