The act of flipping in real estate involves buying a property and selling it for a profit instead of renting it out.
There are a number of types of flipping some of which are legal while others are not. That said, here are 3 legal flipping strategies that will help you make a nifty profit:
#1: Buy, Fix and Flip
This approach is the most common one and which involves buying a property, fixing it and then selling it for a nifty profit. Quite easily, you can make about $15 to $50 K on a single deal. B careful not to spend too much on repairs. Also, remember to factor in the costs of paying your real estate agent.
Most people in the real estate business start off as a scout, looking for distressed properties, and selling that information to real estate investors. This fee depends on the price of the property as well as the profit potential involved. Each time a scout provides information, he or she can expect $500 to $1000 for each property.
With a few real estate markets showing an appreciation which amounts to 2% per month, putting a contract on a pre-construction home or condominium and flipping when it is complete can net you a decent profit. For example, if the condo price is about $500,000, you can easily make about $100,000 in a single year. Conversely, you can lose a lot of money if the value drops and so it is important to use this approach very carefully.