First, ask yourself, will I be a Passive or Active participant in this new venture and yes you can start out one way and move to the other.

An Active Real Estate Investor - is involved in the Hunt... those Day-To-Day activities of House Flipping, however, by putting your money to work you can rip a portion of the proceeds at Closing!

By the same token, as a Passive Real Estate Investor - You put your money to work! Your rewards do not come from having to be involved in the Day-To-Day activities of House Flipping. However, by putting your money to work you can rip a portion of the proceeds at Closing, or even hold an equity position for a bigger piece of the Profit Pie!

Let us digress for a minute here and talk about what is House Flipping anyway! This will give you a better feel for the role want or need to play coming into this game...if you are unsure!

This is my humble opinion must be your thinking going into any business opportunity!

If you are a Newbie to Sales and the Real Estate business then everything becomes a question mark because you simply don't know anything! There is much to be learned here and knowing who to ask the right types of questions at the right time is key. There?s so much information out there and it?s hard to know which is the right way to go and who to trust. 

I?m going to help you to narrow that learning curve and confusion by having access to me and my experienced team here to help to hit the ground running with confidence.

So what is House Flipping? If your end game is to not keep the property, then you need to flip it! 

Selling your contractual position to someone else for cash is pretty much where the term comes from. Because the term is not new to public consciousness when it comes to real estate investing you may have heard the term on television as an example such as Flip This House TV Shows. However, it is one thing to know and another to understand exactly what it really takes to implement. 

 

It takes longer for some than it does others for the light of understanding to come. When it comes to the basic principles it is simple: 

House flipping is essentially just buying a house below market value i.e., through Probate, foreclosure, bad condition, etc., and then selling it for a nice profit, a lot more than you paid for it. 

That said, it sounds simple and to some extent, it is, however, it?s real estate and with any real estate investment there are certain levels of risk involved. It is essential to be able to weigh the risks and benefits and develop a good understanding of what you are getting into. 

Before we delve into the tactics and paradigms of real estate and house flipping, let us take a brief look at the history of real estate and the beginnings of house flipping. 

Although the term "flipping houses" is relatively new, the practice of purchasing and reselling houses, either as an investment or as a get-rich-quick scheme, has been around for quite a while. In fact, real estate has been used as a tool for investment for hundreds of years, perhaps even longer. 

Even in sixteenth-century England, owning property was a symbol of wealth. Before property taxes existed, the rich and well-to-do would use property ownership as a means of ensuring their assets.

In the late twentieth and early twenty-first century, investing in real estate has been a way to profit during periods of low-interest rates. A lot of this investment used to be in the hands of tycoons like Donald Trump. He could put together massive sums of money for investing in commercial projects. These days it is not uncommon to see a lot of smaller-scale investments that do not have to include media moguls and millionaires. 

The enactment of the Federal Real Estate Investment Trust (REIT) legislation in 1960 was a major precursor to the house flipping phenomenon we see today. This act made it easier for investors to pool resources for major, primarily commercial, real estate projects. The legislation has been modified over the years and has led to a much more advanced and expanded real estate industry; any industry that expands is constantly looking for new markets. Because of this, today there is a much larger pool of talent out there for those looking to pursue real estate investments.

The disastrous economic recession of the 1980s was another factor that contributed to the development of the house flipping trend. This had the extra effect of discouraging stock market earnings and increasing the number of foreclosures. Almost everyone has seen commercials and late-night infomercials about how to buy houses "with no money down" and make money fast. 

Sellers of these package plans promised big profits with little risk by buying and selling houses.

Another factor driving the popularity of house flipping is the trend and excitement of renovating old houses. Why totally tear it down when you can restore it into something more modern pleasing to the eyes! This is why television programs such as "This Old House"(from 1979) have given rise to dozens of similar shows on cable television today, like ?Flip This House.? This, combined with the transformation of Real Estate Apps and turning Hardware Stores into home improvement centers even Newbies take an expert approach and not just seasoned Investors, Contractors, etc.

These days, it is not uncommon for people to make their living by buying a house in very poor condition (known as a "fixer-upper") and living there for a few months while they renovate the property. They then sell it for a nice profit and using the money to buy another house and wash and rinse to repeat the cycle.

Thanks for visiting the blog.

-Mr. Charles

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