Chapter 1 - Introduction
Selling a property to make profit can be a great idea to earn some
money, but who has the time to wait until the house bought with money
from a loan appreciates enough, so you can make a profit? No one,
especially when there is another way to approach real estate: house
Look around you. Do you see any houses that are about to fall over –
houses that everyone knows has been unoccupied for years? Find them, fix
them and sell them for a profit. This is called house flipping. And this
is exactly what this book will teach you.
Chapter 2 – Learn the traits of the game
When you hear about flipping houses for a profit you think of instant
money and speedy repairs. Is this the reality of house flipping or are
the TV shows cutting out the reality bites?
The concept of flipping a house is rather simple: you buy a property at
a small price, fix it and then sell for a profit. It sounds good, but if
you expect to make millions by buying penny properties, you need to get
a reality check! However, you can make a full time income doing this.
Flipping is not an easy job and the profits are not that well rounded.
On top of it, like any “on the edge” business, if you mess it up you
might get into bankruptcy. Other times even though you do all the right
things, you still manage to sink along the properties due to house
market crashes or other unexpected situations that make the selling for
a profit part of the flipping impossible.
When you get into this business, you must know a lot more than the basic
concept, if you plan to stick around for some time, investing in the
house market. There are many things to learn, but before you start
buying and selling, you have to know five major facts of the trade.
· Flipping comes with a risk
· Flipping does not happen overnight
· Flipping works on every market, if you know how to do it
· Know what you want to do with the house
· Consider the worst case
Different types of flips
In the world of house flipping there are multiple ways to deal with the
classic three step process. In this book we will focus only on the legal
ways to flip a house; there are also a lot of illegal flippers out there
who work their way on the market before being caught by the long arm of
the law. And they are always caught!
Flipping type 1: Buy, fix, flip
Flipping type 2: Buy and resell as is
Flipping type 3: Buy, refinance and lease with option to buy
Flipping type 4: Pre-construction flippers
Pseudo-Flipping: Scouting for a flipper
Excerpted from "Penny Properties 101 for Dummies" by Tracy Phillips. Copyright © 2017 by Tracy Phillips. Excerpted by permission. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher. Excerpts are provided solely for the personal use of visitors to this web site.