Knowing the Right Methods for Assigning Properties and Assigning Real Estate
There are various meanings that people discuss for flipping. Some discuss it as actually getting a loan for a property, then quickly fixing it up to resell it. This is a strategy you can apply but there are also more financial risks that can be a problem, particularly in down or lingering markets.
When we refer to flipping, we are talking about securing homes inexpensively and then assigning (or flipping) them to another buyer for a fast profit. When we mention real estate wholesaling, we are basically talking about finding homes at a discount and assigning them cost effectively to another individual or rehabber; thus the term wholesale. For more details on lingo, when you assign a property to another person, this just means you are providing the right to them to close on the property directly from the property owner.
After you get a home under contract, you will have control. Then you can pass it on to another rehabber at retail price or for a flat fee so they can purchase it. They take your place in the agreement, then buy the house, are responsible for fixing it up and either keep it or sell it to another person for a higher price. A method like the one developed by Matthew Sorensen for real estate investing is a great no risk way to create quick cash using little or no cash or other financing techniques.
Since you have neither of these limitations you can also do as a many as you want making real estate wholesaling a great cash flow strategy especially once you have a reliable revenue model working for you!